Public Disclosure Authorized

Document of
The World Bank
FOR OFFICIAL USE ONLY

Report No: ICR00005755

Public Disclosure Authorized

IMPLEMENTATION COMPLETION AND RESULTS REPORT

IDA-56730/ IDA-60730

ON A

LOAN/CREDIT/GRANT

IN THE AMOUNT OF SDR 50.8 MILLION AND EURO 28.1 MILLION

Public Disclosure Authorized

(US$ 100 MILLION EQUIVALENT)

TO THE

REPUBLIC OF SENEGAL

FOR THE
URBAN WATER AND SANITATION PROJECT
June 12, 2022

Water Global Practice

Public Disclosure Authorized

Africa West Region

 CURRENCY EQUIVALENTS

(Exchange Rate Effective {Dec 31, 2021})

Currency Unit = EUR

EUR0,87920= US$1
US$1.13739 = EUR 1

FISCAL YEAR
July 1 - June 30

Regional Vice President: Ousmane Diagana

Country Director: Nathan M. Belete
Regional Director: Simeon Kacou Ehui
Practice Manager: Yogita Mumssen
Task Team Leader(s): Mouhamed Fadel Ndaw, Oumar Diallo
ICR Main Contributor: Pieter David Meerbach
 ABBREVIATIONS AND ACRONYMS

AF Additional Financing
AFD French Development Agency (Agence Française de Développement)
AfDB African Development Bank
AIBD Blaise Diagne International Airport- Aéroport International Blaise Diagne
ALG3 Conveyance from Lac du Guiers – 3rd phase - Adduction du Lac du Guiers
CCS Steering Committee (Comité de coordination et de suivi)
C-ESMP Contractor Environmental and Social Management Plan
CFAF CFA Franc
CPF Country Partnership Framework
DEEC Directorate of Environment (Direction de l’Environnement et des Établissements
Classés)
DGPRE Directorate of Water Resources Management and Planning (Direction de la
Gestion et de la Planification des Ressources en Eau)
DTPC Dakar-Thiès-Petite Côte
EIB European Investment Bank
EIRR Economic Internal Rate of Return
ESIA Environmental and Social Impact Assessment
ESMF Environmental and Social Management Framework
F-IRR Financial Internal Rate of Return
FM Financial Management
IDA International Development Association
IEG Independent Evaluation Group
KMS Keur Momar Sarr
LTWSP Long-Term Water Sector Project
MDG Millenium Development Goal
MEFP Ministry of Economy, Finance and Planning (Ministère de l’Économie, des Finances
et du Plan)
MHA Ministry of Water and Sanitation (Ministère de l’Hydraulique et de
l’Assainissement)
MTR Mid-Term Review
NPV Net Present Value
OFOR Rural Boreholes Agency (Office des Forages Ruraux)
OHS Occupational Health and Safety
ONAS National Sanitation Agency of Senegal (Office National de l’Assainissement du
Sénégal)
PAD Project Appraisal Document
PCU PEPAM Coordination Unit
PDO Project Development Objective
PEAMU Project Eau et Assainissement en Milieu Urbain
PEPAM Water and Sanitation Millenium Program (Programme d’Eau Potable et
d’Assainissement du Millénaire)
PP Project Paper (for Additional Financing)
PPP Public-Private Partnership
RAP Resettlement Action Plan
RF Results Framework
RPF Resettlement Plan Framework
SdE Senegalese Water Utility (Sénégalaise des Eaux)
SEN’EAU Senegalese Water Utility (Eau du Sénégal)
SDR Special Drawing Rights
SONES National Water Company of Senegal (Société Nationale des Eaux du Sénégal)
SPEPA The Water and Sanitation Law (Loi sur le Service Public de l’Eau Potable et de
l’Assainissement)
ToC Theory of Change
PSE Water Sector Project (Projet Sectoriel Eau)
PEPAM-IDA Water and Sanitation Millennium Project (Programme d’Eau Potable et
d’Assainissement du Millénaire)
WSS Water Supply and Sanitation
 TABLE OF CONTENTS

DATA SHEET .......................................................................................................................... 1

I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5
A. CONTEXT AT APPRAISAL .........................................................................................................5
B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) .......................................9
II. OUTCOME .................................................................................................................... 11
A. RELEVANCE OF PDOs ............................................................................................................ 11
B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 12
C. EFFICIENCY ........................................................................................................................... 15
D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 16
E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 16
III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 17
A. KEY FACTORS DURING PREPARATION ................................................................................... 17
B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 18
IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 20
A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 20
B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 20
C. BANK PERFORMANCE ........................................................................................................... 21
D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 21
V. LESSONS AND RECOMMENDATIONS ............................................................................. 22
ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 24
ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 39
ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 42
ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 43
ANNEX 5. EVOLUTION OF FINANCIAL INDICATORS ............................................................... 52
ANNEX 6. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 53
ANNEX 7. SUPPORTING DOCUMENTS (IF ANY) ..................................................................... 54
 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

DATA SHEET

BASIC INFORMATION

Product Information
Project ID Project Name

P150351 Senegal Urban Water and Sanitation Project

Country Financing Instrument

Senegal Investment Project Financing

Original EA Category Revised EA Category

Partial Assessment (B) Partial Assessment (B)

Organizations

Borrower Implementing Agency

Office National de l'Assainissement du Senegal (ONAS),

Programme Eau Potable et Assainissement pour le
Republic of Senegal
Millenaire (PEPAM), Societe Nationale des Eaux du
Senegal (SONES)

Project Development Objective (PDO)

Original PDO
The proposed Project Development Objective (PDO) is to improve access to water and sanitation services in
selected urban areas in afinancially sustainable manner.

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

FINANCING

Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$)

World Bank Financing
70,000,000 70,000,000 71,003,473
IDA-56730
30,000,000 30,000,000 31,639,631
IDA-60730
Total 100,000,000 100,000,000 102,643,104
Non-World Bank Financing
0 0 0

Borrower/Recipient 0 0 0
Total 0 0 0
Total Project Cost 100,000,000 100,000,000 102,643,104

KEY DATES

Approval Effectiveness MTR Review Original Closing Actual Closing

15-Jun-2015 18-Jan-2016 13-Jan-2020 30-Jun-2020 31-Dec-2021

RESTRUCTURING AND/OR ADDITIONAL FINANCING

Date(s) Amount Disbursed (US$M) Key Revisions

14-Jun-2017 12.95 Additional Financing
Change in Results Framework
Change in Components and Cost
Change in Loan Closing Date(s)
Change in Disbursements Arrangements
Change in Procurement
Change in Implementation Schedule
15-Jan-2021 96.10 Change in Disbursements Arrangements

KEY RATINGS

Outcome Bank Performance M&E Quality

Highly Satisfactory Highly Satisfactory High

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

RATINGS OF PROJECT PERFORMANCE IN ISRs

Actual
No. Date ISR Archived DO Rating IP Rating Disbursements
(US$M)
01 06-Jan-2016 Satisfactory Satisfactory 0
02 25-May-2016 Satisfactory Satisfactory 3.88
03 02-Dec-2016 Satisfactory Satisfactory 7.29
04 05-Jun-2017 Satisfactory Satisfactory 12.95
05 07-Dec-2017 Satisfactory Satisfactory 24.33
06 24-May-2018 Satisfactory Satisfactory 34.11
07 13-Nov-2018 Satisfactory Satisfactory 45.86
08 09-May-2019 Satisfactory Satisfactory 60.31
09 29-Oct-2019 Moderately Satisfactory Satisfactory 70.65
10 17-Apr-2020 Satisfactory Satisfactory 80.91
11 09-Oct-2020 Satisfactory Satisfactory 91.70
12 06-Apr-2021 Satisfactory Satisfactory 96.27
13 01-Oct-2021 Satisfactory Satisfactory 98.84

SECTORS AND THEMES

Sectors
Major Sector/Sector (%)

Water, Sanitation and Waste Management 100

Sanitation 24
Water Supply 70
Public Administration - Water, Sanitation and Waste
6
Management

Themes
Major Theme/ Theme (Level 2)/ Theme (Level 3) (%)

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

Private Sector Development 10

Public Private Partnerships 10

Urban and Rural Development 100

Urban Development 100
Services and Housing for the Poor 100

ADM STAFF
Role At Approval At ICR

Regional Vice President: Makhtar Diop Ousmane Diagana

Country Director: Vera Songwe Nathan M. Belete

Director: Junaid Kamal Ahmad Simeon Kacou Ehui

Practice Manager: Alexandre Edouard Bakalian Yogita Mumssen

Mouhamed Fadel Ndaw,
Task Team Leader(s): Matar Fall
Oumar Diallo
ICR Contributing Author: Pieter David Meerbach

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES

A. CONTEXT AT APPRAISAL
Context

1. Country context: At the time that the World Bank approved the Urban Water and Sanitation Project (PEAMU –
Project Eau et Assainissement en Milieu Urbain) in May 2015, Senegal had the aspiration to become an emerging
middle-income country by 2035. However, for close to a decade, growth in Senegal averaged 3.3 percent and was
lagging the rapid growth of around 6% in other Sub-Saharan African countries. Growth was sluggish mostly because of
low productivity in the mining and industrial sectors, and a series of poor cereal harvests, with the main drivers of
economic growth the construction and services sector. During this period, poverty declined slightly, but the poverty
index was still standing at 46.7 percent, with the achievement of the Millennium Development Goal (MDG) of halving
poverty by 2015 being an unlikely prospect.
2. In 2012, Senegal adopted a National Economic and Social Development Strategy, rooted in the vision to achieve
economic emergence by 2035, through improved governance and economic growth. The strategy was to be
implemented through a major investment program that would trigger strong and steady growth, drastically improve
living conditions, and minimize social inequalities. Growth prognosis at the time of appraisal of PEAMU were therefore
in the order of 6-8% per year.
3. Sector context: With 44% of the population of Senegal living in urban areas in 2015, provision of water and
sanitation services is a core underpinning to improved living conditions and economic growth. Senegal is among the
top performers in the water sector in the region, with access to water at 98% (MDG - 96%) in urban areas, and 84.7%
(MDG 82%) in rural areas. Access to improved sanitation is lagging, with 61.7% in urban areas (MDG 78%) and 38.7 %
in rural areas (MDG 63%). The main driver for this performance has been the comprehensive institutional, legal and
regulatory framework established by the Government.
4. This process started in 1996 with the creation of the National Water Company (SONES - Société Nationale des Eaux
du Sénégal) to develop urban water infrastructure under a concession agreement with the Government and the first
performance-based lease agreement with a private operator for the urban water services. The National Sanitation
Agency (ONAS - Office National de l’Assainissement du Sénégal) was created both to develop and manage the urban
sanitation sub-sector. In 2005, sector strategy and implementation coordination were further strengthened by the
Water and Sanitation Policy Letter, to achieve the MDGs by 2015, and by establishing the Millenium Potable Water and
Sanitation Program (PEPAM - Programme d’Eau Potable et d’Assainissement du Millénaire) as the steering and
coordination instrument for all activities in the sector. In 2008, the responsibilities and principles for the management
of the urban and rural water supply and sanitation sector were defined in the Water and Sanitation Law (Loi SPEPA).
5. The World Bank had supported the development of the sector through three projects, each project structured as
a stand-alone project, but in effect functioning as a multi-year programmatic series-of-projects, with each subsequent
project building on the results and lessons learned of the previous project. The first project, approved in 1995, was the
Water Sector Project (WSP), which focused on reducing bulk water shortages, and on strengthening financial discipline
in the sector, reducing the reliance on government budget. Under the project, SONES adopted a financial model to
work towards financial equilibrium of water supply services, and based on this model, the first affermage contract (i.e.,
lease contract with performance targets) with the private sector operator, Senegal Water Utility (SdE - Senegalaise des
Eaux) was signed in 1996. As a result, significant progress was made towards financial equilibrium and wider coverage

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

of water supply and sanitation (WSS) services were achieved by project closing. At Mid-Term Review (MTR), lessons
learned from project implementation were instrumental in designing the second project, the Long-Term Water Sector
Project (LTWSP), which was approved in 2001 and was closed with a highly satisfactory IEG-rating in 2004.
6. Under the LTWSP, coverage was expanded to unserved and low-income areas of Dakar and secondary cities, and
further sector reforms and policy enhancements were supported. SONES reached full financial equilibrium in 2003
when its operating revenues covered its cash operating expenditures, The financial equilibrium of the urban water was
maintained in 2004 and 2005 without any increase in the average water tariff, thanks to the increase in the volume of
water sold, the stability of costs during this period, and productivity gains by SONES and SDE. In 2006, the increase in
the price of certain inputs such as electricity and chemicals necessitated an increase in the average water tariff. The
government, considering that a general increase in water tariffs was not politically and socially acceptable in a difficult
economic context, decided an increase in the Administration's tariff, leaving other tariffs unchanged. The
Administration tariff was raised by 31% in 2006 and 31% in 2007, while the other tariffs remained unchanged. PEPAM
was established in 2005, the Water and Sanitation Law was adopted in 2008, and coverage of both water supply and
sanitation was significantly expanded to previously underserved areas. The model of performance contracts, like the
affermage contract with SdE, the water utility, were extended to ONAS and SONES, making them accountable for similar
performance targets, and a five-year extension of the lease contract with SdE was negotiated. At this time, around
2007-2009, three main challenges emerged: (i) sustainable groundwater management to ensure long-term water
supply; (ii) following a tariff increase, there was an increase in deferral of payments of Government water invoices to
SONES and ONAS, reducing their financial equilibrium; and (iii) low water and sanitation coverage in rural areas. These
challenges were addressed in the third project, the Water and Sanitation Millennium Project (approved in 2010), which
focused on expanding coverage to rural areas, creation and strengthening of the Rural Water Supply Agency (OFOR -
Office des Forages Ruraux) and enhancing the performance of SONES and ONAS and sector reform in general. This
project closed highly satisfactory (IEG-rating) in 2015, mainly because of the achievements in expanding water supply
and sanitation services in rural areas. At the time of the project, in 2014, the Government adopted the Framework
Note (Note du Cadrage) for the sector, which set out the ambition of the Government for the development of the
sector. The core elements of this framework were: (i) maintain the operational performance of SONES and ONAS and
increase access to improved water and sanitation services; (ii) sustain the financial equilibrium of SONES, and improve
cost recovery of sanitation services and the financial equilibrium of ONAS; and (iii) ensure tariffs which are socially
acceptable. With respect to public-private partnerships, the Note identified the following priorities: (i) based on the
long-term positive track record and reduced risk profile of the WSS sector, re-launch the bid process for the affermage
contract to obtain lower prices, instead of re-negotiating and extending the existing contract; (ii) place the responsibility
of asset management, and structural investments to SONES; (iii) water distribution and household connections to be
outsourced to the private operator; (iv) increased private sector participation in sanitation, drainage and flood
mitigation; (v) increased synergy of the water and sanitation sector, with coupling of water and sanitation tariffs and
revenues; and (vi) enhanced regulation of the sector. At the time of appraisal of PEAMU in 2016, there were numerous
challenges in the sector. First and foremost, was the emergence of water shortages and the vulnerability of the system
to breakdown of key sections of the conveyance system, which was evident when Dakar city was left with 40% of
normal water supply for 3 weeks, when the connection to the water treatment plant at the Lac de Guiers broke down
in September 2013. Firstly, it was estimated that for Dakar the water shortages would reach 60,000 cum/day by 2020,
and for Petite Cote 35,000 cum/day. Secondly, there remained a persistent and significant gap in the provision of water
supply services and the provision of improved sanitation services. Thirdly, the increased tariff burden on public users
had led to the accumulation of debt arrears, undermining the financial equilibrium of SONES and ONAS. Fourth and
last, there was a need for a second-generation reform (reform 2G). The reform 2G should include the re-bidding of the

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

affermage contract, improvement of sanitation services and addressing the unfunded mandate for drainage and flood
protection services.
7. To address water shortages, SONES using its own financial resources was increasing groundwater production by
around 40,000 cum/day. With external financing from the European Investment Bank (EIB), the Agence Française de
Development (AFD), the African Development Bank (AfDB) and the Islamic Development Bank (IsDB), the production
capacity of the water treatment plant at Keur Momar Sarr (KMS) on de Lac de Guiers was planned to be expanded with
100,000 cum/day by 2021. Additional water security studies exploring the feasibility of seawater desalination and/or
water transfers from the Lac de Guiers watershed were being conducted. However, to meet the short-term demand
in the 2015-2020 period, additional well fields needed to be developed, for which previous studies had shown that the
best location was around Thies, at 60 km east of Dakar. To maintain financial equilibrium in light of these increased
investments, tariffs needed to be increased, but this was to be postponed until shortages were relieved.

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

Theory of Change (Results Chain)

8. The Project Appraisal Document did not require a Theory of Change (ToC), and therefore the ToC was created for
this Implementation Completion and Results Report based on the information provided in the Project Appraisal
Document (PAD) and the Results Framework (RF).
Project activities Project outputs PDO outcomes Long-term outcomes
Technical assistance (studies) and
Water resource planning Long-term water security
monitoring equipment

Construction of wells/boreholes Bulk water production

Improved access to Ensure availability and

Construction of water pipelines, water sustainable management
Bulk water conveyance
storage and associated infrastructure of water and sanitation for
all.
Distribution and
Subsidies for and construction of
household water
social water connections
connections
Beneficiaries that
Subsidy and construction of social Controlled discharge of feel PEAMU
sanitation connections domestic wastewater to a reflected their needs
sewerage network
Construction of on-site treatment Localized treatment of Improved access to Improved public health
sewage sanitation
Construction of sewerage network Conveyance and
and treatment plants for wastewater treatment of domestic
and septage wastewater.

Affordability of basic
New affermage contract Financially sustainable services for the poor
Technical assistance for affermage water services
contract, tariff setting, sector policy Revised water tariff
and sector coordination (PEPAM) Strong financial discipline
Financially sustainable in the WSS sector.
Revised sanitation tariff
sanitation services

Project Development Objectives (PDOs)

9. The objective of the Project was to improve access to water and sanitation services in selected urban areas in a
financially sustainable manner.

Key Expected Outcomes and Outcome Indicators

10. The key expected outcomes and corresponding indicators for measuring success in achieving the PDO were:
(a) Number of people in urban areas provided with access to “Improved Water Sources” under the project (core);
(b) Number of people in urban areas provided with access to “Improved Sanitation” under the project (core);
(c) Number of people with access to enhanced water supply services
(d) Number of direct project beneficiaries, disaggregated by gender (core);
(e) Financial equilibrium of the urban water sector maintained (yes/no);

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

(f) Coverage of cash operating expenditures of sewerage activities of ONAS; and

(g) Beneficiary feedback (core)
Components
11. The project consisted of three components: (i) Water Supply (US$ 48.90 m original, US$ 77.64 m at AF appraisal,
US$ 73.65 m actual); (ii) Sanitation (US$ 16.8 m original and at AF appraisal, US$ 19.46 m actual), and (iii) Institutional
Strengthening and Project Management (US$ 4.30 original, US$ 5.66 m at AF appraisal, US$ 5.81 m actual):
12. Component 1. Water Supply (US$48.9 million): This component improved water services and expanded access
through financing the development of groundwater resources (construction of boreholes and water conveyance and
storage infrastructure) supplying new areas and develop groundwater resources in the Tassette area to relieve water
shortages in the Dakar urban area until the Dakar area was supplied through the KMS scheme at Lac de Guiers, after
which the Tassette well-field supplied customers in Petite Cote. In addition, the component financed the rehabilitation
and installation of water transmission and distribution infrastructure as well as household connections in the
(secondary) urban center of Nguekhokh and in under-served areas in Dakar, and technical studies were financed to
prepare investments in water supply services.
13. Component 2. Sanitation (US$16.8 million): This component increased access to improved sanitation through
financing sanitation facilities in the urban center of Joal-Fadiouth, including sanitation pipes and sewerage, pumping
stations and household connections, on-site sanitation facilities and public toilets, and wastewater and sludge
treatment plants. It also financed information campaigns, household connections and sewer expansion in underserved
areas and technical studies to develop a sanitation system for Dakar; Thiès and Kaolack
14. Component 3. Institutional Strengthening and Project Management (US$4.3 million): This component supported
sector institutions and the sector reforms, as well as project management, and financed groundwater studies,
hydrogeological studies and related equipment, technical assistance to guide the 2G sector reform, financing to
implement the safeguard instruments, and project management.

B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE)

Revised PDOs and Outcome Targets
15. In June 2017 an Additional Financing (AF) of US$ 30 m was approved to scale-up activities to increase access to
water services and alleviate emerging water shortages. The AF financed the connection between the third phase of the
Guiers Lake Water Supply System (ALG3 - Adduction du Lac de Guiers, a 250 km pipeline connecting the Lac du Guiers
to the Dakar area) and the Mbour urban area. As a result of the AF, the closing date and target dates were extended to
December 31, 2021, there were no changes to the PDO, and for two Outcome Indicators, the targets were revised as
follows:
• “People with access to enhanced water supply services under the project”:
- target increased from 330,000 to 560,000
• “Direct project beneficiaries”:
– target increased from 590,000 to 820,000

Revised PDO Indicators

16. To reflect additional activities financed by the AF and the increased output under the project, one intermediate
results indicator was revised as follows:

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

• “Length of feeder pipes constructed under the project”:

- target revised from 45 km to 99.5 km, target date December 31, 2021.

Revised Components
17. Under the AF, Component 1 (Water Supply) was revised to finance the connection between the ALG3 and the
transmission and distribution network serving the area of Mbour and Petite Cote. Civil works included the main
transmission pipeline and water storage facilities. Component 3 was revised to include finance for additional
groundwater studies and exploration through trial boreholes, and the Strategic Environmental Assessment for the Water
Supply Master Plan (2016) for Dakar-Thiès-Petite Côte (DTPC). Component 2 was not revised.
Other Changes
18. A second order restructuring in January 2021 amended the eligible disbursement categories under the Additional
Financing to include works, goods and services for improved sanitation (Component 2) under the eligible disbursement
categories.
Rationale for Changes and Their Implication on the Original Theory of Change
19. At the time of the 2017 Additional Financing, the Water Supply Master Plan for the DTPC area highlighted options
to eliminate emerging water shortages in the area of Petite Cote were limited, since seawater desalination in the area
appeared to be technically not feasible, ground water in the Petite Cote area was already overexploited and a
transmission line between Tassette and Petite-Cote was financially not feasible. The Master Plan showed that water
shortages would be eliminated by the creation of additional water transmission capacity of 50,000 m3/day from ALG3
to Petite Côte. Following construction of the transmission line, groundwater produced from the Tassette well field would
not supply Petite Cote, but would continue to be conveyed to Thiès and Dakar after 2021, as Petite Côte would be
entirely supplied with water from ALG3. The link between ALG3 and Mbour would pass through the AIBD area (Blaise
Diagne International Airport- Aéroport International Blaise Diagne), which would enable the use of a transfer pipe
already financed by the Islamic Development Bank (IsDB)1. An AF was the preferred financing mechanism, because it
expedited the project preparation track, was building on effective implementation mechanisms and positive results
under the parent project, and complemented the efforts of other development partners (AfDB, the European
Investment Bank, the Islamic Development Bank, and AFD (Agence Française de Développement), which financed the
expansion of the ALG.
20. The January 2021 restructuring was requested in order to amend the legal agreement for the AF, in order to allow
for cost savings under the AF for civil works for the water transmission line to be used to complete civil works for:
(i) additional boreholes to increase water capacity and (ii) additional household connections and sewerage pipes.

1 The PEAMU project combined both emergency interventions to increase water availability (Tassette boreholes)
and long-term investment linked to KMS3 with the construction of the two reservoirs of 10.000 m3 each
indispensable for the transit of water from KMS3 to Dakar. The PEAMU built the feeders connecting the Petite Côte
to the ALG3. The ALG3-Mbour connection was completed and commissioned by the closing date. The IsDB
intervention was only related to an upstream connection of 6 kms from the ALG3 to the new airport from which
PEAMU started the connection to Mbour.

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 The World Bank
Senegal Urban Water and Sanitation Project (P150351)

II. OUTCOME

A. RELEVANCE OF PDOs
Assessment of Relevance of PDOs and Rating
21. The PDO was fully aligned with the Country Partnership Framework (CPF) at the time of appraisal and remains fully
aligned with the current CPF for FY2020-2024. The CPF FY2020-2024 was guided by the second Priority Action Plan
(2019–2023) of the government’s Emerging Senegal Plan and the 2018 Systematic Country Diagnostic, and supported
three main pillars: (i) Building human capital to enhance productivity and generate the demographic dividend;
(ii) boosting competitiveness and job creation through private sector-led growth; and (iii) Increasing resilience and
sustainability in the context of growing risks. Under the third Pillar, the PDO directly contributed to the higher-level
outcomes defined in the CPF:
o Pillar 3.1 Promote and protect resilient livelihoods, ecosystems, and infrastructures in the face of
climate change
o Pillar 3.2 Ensure access to water and sanitation in the most vulnerable areas
o Pillar 3.3 Improve Government’s overall effectiveness, efficiency and transparency
22. Pillar 3.2 in the CPF identifies the vulnerable areas for access to water and sanitation primarily as rural areas
(vulnerable in terms of access to sanitation and water), and urban areas for access to sanitation. This speaks to the
success of the PEAMU and its predecessor projects, as SONES has demonstrated that it can fully and independently meet
its mandate to provide water services in urban areas, and therefore the CPF focus shifted to increasing access to water
in vulnerable rural areas and to sanitation in vulnerable areas. This agenda was supported by PEAMU, through
investments in urban sanitation and water supply in secondary urban settlements. In addition, the Greater Dakar area
(Dakar-Mbour-Thiès) is currently home to 5 million inhabitants, 32 percent of the country's population and nearly 51
percent of its urban population. With population growth in the capital of 3%, increasing from 2.6% in 2019 and with the
development of a new economic hub in the area of the airport, water demand has been growing faster than expected,
and PEAMU significantly contributed to meeting current and future water demand.
23. The PDO contributes to Pillar 3.1 by contributing to long-term water security and resilience through investments in
studies on long-term water security and construction of water production facilities and more versatile water
transmission systems. This production and distribution system is more resilient to climate-induced water shortage, as
it can distribute water supply from multiple and geographically dispersed water production facilities across the service
area, and production shortages at one location can now be alleviated with water supply from alternative facilities.
24. The sector reform supported under PEAMU directly contributes to achievement of Pillar 3.3, as the performance
contracts between the Government and SONES and ONAS, as well as the affermage contracts with the private operator
greatly enhance the effectiveness, efficiency and transparency of the Government to ensure access to affordable water
and sanitation services by the population.
25. The relevance of the PEAMU (and its predecessor projects) is also highlighted in the Systematic Country Diagnostic
(2018) which notes Senegal’s impressive and nearly universal safe water access rate, standing at 92 percent nationally
and at 98 percent in urban areas, positioning Senegal above all its neighbors.
26. Based on the above, the PDO is highly relevant, as the PEAMU provided clear evidence of the alignment of the
PDOs to the current CPF objectives.

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B. ACHIEVEMENT OF PDOs (EFFICACY)

Assessment of Achievement of Each Objective/Outcome
27. The PDO (to improve access to water and sanitation services in selected urban areas in a financially sustainable
manner) is evaluated in three parts, with corresponding indicators2, as follows:
• Objective 1: to improve access to water services in selected urban areas.
- Corresponding indicators:
(a) Number of people in urban areas provided with access to “Improved Water Sources” (core);
(c) Number of people with access to enhanced water supply services
• Objective 2: to improve access to sanitation services in selected urban areas.
- Corresponding indicators:
(b) Number of people in urban areas provided with access to “Improved Sanitation” under the project
(core)

• Objective 3: to improve access to water services in a financially sustainable manner.

- Corresponding indicators:
(e) Financial equilibrium of the urban water sector maintained (yes/no)
(f) Coverage of cash operating expenditures of sewerage activities of ONAS

Two core indicators (number of project beneficiaries, gender disaggregated, and beneficiary feedback) pertain to all
three objectives. Attribution of the achievement of the outcomes to the activities financed through the PEAMU is
established through: (i) the straightforward ToC, directly linking WSS infrastructure investments to the areas and
households served by the WSS infrastructure; (ii) the detailed M&E system using the reports on engineering and
technical evaluation of the works, the enhanced WSS services, and the areas served, and the audited financial reports
of SONES and ONAS; and (iii) verified at the household level through the beneficiary surveys at MTR and after project
closing.

Achievement of Objective 1: to improve access to water services in selected urban areas

28. The outcome indicator “Number of people in urban areas provided with access to “Improved Water Sources” was

2 PDO Indicators are declined in the Results Framework with methodology of calculation as follows:

PDO Indicator 1.1: Number of people in urban areas provided with access to “improved water sources” under the Project = Number of new social
connections x [9 people]

PDO Indicator 1.2: Number of people with access to enhanced water supply services under the Project = Daily production of new facilities (m3/day)
x 1,000 x 0.8 (network efficiency) / (1.3 (peak factor) x 65 lpcd (average daily consumption per capita))

PDO Indicator 2: Number of people in urban areas provided with access to “improved sanitation” under the Project = Number of new sewer
connections x [13 people] + Number of on-site sanitation facilities x [13 people]

NB: The average number of people per water connection is lower than the average number of people per sewerage connection because there is only
one sewerage connection per compound/housing unit, while there may be multiple water connections per compound/housing unit.

PDO Indicator 3.1: Financial equilibrium of the urban water supply sub-sector meet (Yes/No) = SONES’ net cash balance (previous year plus net
cash flow from operations minus debt service and variation of working capital requirements) positive or equal to zero

PDO Indicator 3.2: Coverage of cash operating expenditures of sewage activities of ONAS (Target: 90%) = Annual revenues from sewage
surcharges/Annual cash operating expenditures of ONAS’ sewage activities

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fully met in April 2018, three years before project closing, reaching 180,000 people. This result is fully attributable to
PEAMU, as the 20,000 household connections, the associated water conveyance and the 24,500 m3 of water storage
capacity financed under the PEAMU benefitted an average of 9 people per connection. The outcome indicator
“Number of people with access to enhanced water supply services” reached 562,000 people, slightly higher than the
target of 560,000. This result is fully attributable to the PEAMU, as the 59,361 m3/day additional water production
(35,243 m3/day from boreholes and 24,118 m3/day from Lake of Guiers through the 117 km feeder built under
PEAMU) met the water demand of 562,000 people3. These achievements are sustainable as the financial and technical
capacity of SONES and SEN’EAU (the private operator selected after the second generation of reform) to manage and
expand the water distribution networks is well established, and bulk water supply for the short- and medium-term
are secured through diversification of water sources (ALG and various well fields) and the capacity of SONES and
sector counterparts to identify, explore and develop additional sources to meet long-term demands.

Achievement of Objective 2: to improve access to sanitation services in selected urban areas

29. The outcome indicator “ Number of people in urban areas provided with access to “Improved Sanitation” under
the project” was fully met reaching 83,694 people at project closing, slightly higher than the target of 80,000 people.
This was the result of investments in household sewerage connections, on-site sanitation facilities, pumping and de-grit
stations, sewerage and septage haulage to treatment sites, and construction of septage and wastewater treatment
facilities at Joal-Fadiouth. The achievement of this indicator can be fully attributed to the PEAMU. Intermediate results
indicators were met as the project financed: (i) 6,117 household sewer connections; (ii) 321 on-site sanitation facilities
in Joal-Fadiouth (both primarily in areas underserved prior to the project) and (iv) 100 km of sewer line in Joal-Fadiouth,
Kaolack, Thies and Dakar. These achievements are sustainable, as the technical capacity of ONAS to operate sanitation,
sewerage and treatment facilities is adequate, and their financial and organization capacity has been enhanced under
the PEAMU. Some points for attention are: (i) the relatively high salinity of effluent from the Joal-Fadiouth wastewater
treatment plant (WWTP), affecting the treatment efficiency and the reuse potential of the effluent, but the salinity
should decrease because of sewage dilution resulting from increased water supply to the area served by the WWTP with
the connection of the ALG3 pipe to the Petite Côte (because before the populations used in majority the waters of the
nearby aquifer which present very high salinity rates);; and (ii) working with municipalities to enhance the organization,
financing and affordability of the haulage of septage to the septage treatment facilities.
Achievement of Objective 3 – to improve access in a financially sustainable manner
30. The outcome indicator “Financial equilibrium of the urban water sector maintained” was fully met when the
Government adopted the reform 2G for the sector and re-launched and re-signed the affermage contract with the
private sector. This new contract with SEN’EAU brought significant benefits compared to the original contract, with
a cost per m3 of water charged by the operator 20% less compared to the original contract. The result can be directly
attributed to the PEAMU, as the PEAMU provided critical elements for the success of the reform 2G process: (i) the
PEPAM-Project Coordination Unit in charge of coordinating sector reform; (ii) the technical assistance consultancy
firm advising on the 2G sector reform and re-launch and re-bidding of the affermage contract; (iii) a team of highly
qualified experts advising the Government on bid evaluation and contract negotiation and award and establishment
of the leasing company ; and (iv) a high-level dialogue of the Bank task team and the Government, focused on
achieving the two PDO level indicators on financial equilibrium of SONES and ONAS. The achievements of these
indicators highlight the effectiveness of the chosen approach – instead of renegotiating the existing contract and
establishing another 10+ years affermage contract based on existing terms, the bidding process allowed Government

3Daily additional production (m3/day) x 1,000 x 0.8 (network efficiency) / (1.3 (peak factor) x 65 lpcd (average daily
consumption per capita)

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and SONES to re-calibrate the key contract parameters and prices, leading to significant cost reductions. Based on
the development of SONES and the water distribution system into a mature and reliable entity with a well-
documented financial and organizational track record, the risks for the private operator were significantly lower when
compared to the first bidding process, and this lower risk was translated into lower prices for the water service. The
strong financial equilibrium of the urban water sector is also demonstrated by the enhanced credit worthiness of
SONES, which is increasingly able to access commercial and concessional financing from other sources. This is
demonstrated by the fact that, as part of its contract with the Government, SONES is responsible for servicing the
debt for the IDA-credit for the water component of the PEAMU and its predecessor projects to the Ministry of Finance.

31. The outcome indicator “Coverage of cash operating expenditures of sewerage activities of ONAS” was fully met, as
96% of cash operating expenditures (above the target of 90%) are met as of end 2020, up from 65% before the project.
The result can be directly attributed to the PEAMU and its support for the 2G-reform4 and the close monitoring of the
two financial PDO indicators: (i) improved service delivery for water and sanitation (through infrastructure investments)
paved the way for increasing the sewerage tariffs; (ii) until 2020, the coverage of ONAS hovered from 69% to 90% (end
2018) to 85% (end 2019) to 78% (early 2020), mainly because of fixed water tariff and non-payment by public customers,
but after the August 2020 Ministerial order to raise the sanitation fee (from US$ 0.50 to US$ 1.27 for public sector
customers), the coverage ratio increased and remained steady at 96%; and (iii) the lower price per m3 of delivered
water, charged under the new affermage contract, allowed for some cross-subsidies from the water fee to the sanitation
coverage. The coverage would be improved in case bill payment arrears of public sector customers would be settled,
since currently 48% of their bills are not paid in time.

General achievement
32. The general number of beneficiaries, applying to objectives 1, 2 and 3, has also been fully met, at 825,394 exceeding
the target of 820,000. This is the total number of people benefitting from either: (i) the improved water sources (which
is underserved and new areas connected to the network, mostly in Dakar, Petite Cote and Mbour); (ii) the enhanced
water supply (areas which were already served by the distribution network, mostly in Dakar and Mbour, benefitting
from connection to multiple water production sources); and (iii) improved sanitation, which are mostly newly connected
areas in Dakar, Thies, Kaolack and Joal Fadiouth.
33. Beneficiary satisfaction already met the target at the survey conducted shortly after Mid-Term Review. This survey
sampled 1,840 households (31.5% of which are headed by women) drawn from 92 census districts, with 200 households
impacted and benefitting from project interventions at Ndiok-Sall5. According to the results of the survey, at MTR 81.7%
of all responding households, in all seasons, were satisfied with the results and impact of the PEAMU, while at the end-
of-project survey this number had increased to 89.7%, which is 9.7% or 80,063 beneficiaries higher than the target
values.

4 The firm who supported the Government in the design of the 2Greform was hired through the PEAMU. During the procurement
process, the PEAMU has provided the Government with an individual consultant to advise the selection committee. After the
selection of the new private operator, the Bank team consistently insisted that the 20% savings are used to ensure financial
equilibrium of the sector. These efforts influenced the decision of the Government to increase the sanitation fee which resulted
in the significant capability of ONAS to cover its O&M costs through tariffs rather than erratic subsidies

5Ndiock Sall is a cluster of villages in Louga region included in the affermage area and was facing dire water shortages. As the
PEAMU PDO was open to all selected urban areas, the Bank team agreed to respond to the client’s demand to intervene in this
area with PEAMU savings.

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Justification of Overall Efficacy Rating

34. Since outcome indicators were fully achieved or exceeded, and the achievement is fully attributed to the PEAMU,
the efficacy is rated High.

C. EFFICIENCY
Assessment of Efficiency and Rating
35. An ex post economic analysis was carried out using a methodology similar to that used in the PAD and the Project
Paper (PP) for the Additional Financing (see details in Annex 4). As in the PAD, the ex-post analysis consists of: (a) a cost-
benefit analysis of the water supply components (representing 78.9% of the total project costs) for which quantifiable
benefits can be measured; and (b) a cost-effectiveness analysis of the sanitation components (representing 16.8% of the
total project costs). The remainder of project financing was allocated to project management and technical assistance.
36. Water supply. For all the sub-components related to the development of potable water supply, the benefits accrue
from the additional sales of water, with a value according to the water tariff, and from the additional benefit accruing
to consumers with new private connections, which previously obtained water from vendors or standpipes. Although
absent in the economic analysis in the PAD and the Project Paper, the ex-post analysis also identified and evaluated the
economic benefit associated with the time-avoided by women and girls to haul water. The ex-post analysis highlighted
the differences observed between the resources planned at the beginning of the project and at the time of the additional
financing, the resources actually consumed, and the economic costs used for the economic analysis.
37. The analysis showed that benefits were largely in line with the costs and benefits described in the PAD and the
Project Paper, whereas economic costs were around 10% higher than the original estimates. These higher costs were
the result of higher costs incurred under the PEAMU for the AIBD-Mbour feeders, and the higher cost for the ALG3-AIBD
pipeline, which was financed by the AfDB. In addition, the estimate of savings on works (54%) at the time of the AF was
too optimistic. Results of the ex-analysis are presented in the table below:

Table 1: Indicators of economic profitability of the project

Indicators PAD analysis AF analysis Ex- post analysis
EIRR (%) 14.4 15.2 12.7
NPV at 10% (US$, millions) 14.6 19.1 8.47
NPV at 6% (US$, millions) 42.7 55.8 33.77

38. The drinking water component has a positive overall economic impact with an Economic International Rate of
Return (EIRR) of 12.7% and a Net Present Value at a 6% discount rate of US$ 33.8 million. Although lower than the
forecasts made in the PAD and the Project Paper (as a result of the increased costs), these results are positive and in line
with expectations. In addition to the economic analysis, a financial analysis was conducted for the Water Supply
component (at current price). The financial rate of return is estimated at 10.3%, i.e. a rate higher than that of the PAD
(8.3%). but lower than that of the FA (11.4%).
39. Sanitation. The cost-effectiveness analysis showed that the project had a significant impact on the target groups
and the financial capacity (fixed capital) of ONAS. Actual investment costs per beneficiary were US$ 8 lower than the
PAD estimate of US$ 159 per beneficiary, which not only increased the cost-effectiveness of the sanitation investments,
but also enabled the project to use the cost-savings for additional investments and a larger group of beneficiaries.
Economic benefits include the net household savings for the cost of emptying cesspits, estimated at US$ 6.7 per
person/year, and reduced health expenditures (based on a rough estimate on the impact of diarrheal diseases), of on
average US$ 8 per person/year, so total benefits are between US$ 13 (connected to sewer) to US$ 16 (connected to on-

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site facility) per household/year. These health benefits were not included in the analysis of the PAD and the Additional
Financing.
40. Financial viability of SONES and ONAS. The financial performance of both SONES and ONAS significantly increased
mainly as a result of the tariff revisions, the new affermage contract, the financial PDO outcome targets and the technical
assistance and government dialogue under the umbrella of the PEAMU. SONES improved its debt service coverage ratio
to 1.86 in 2020, which is well above the target value of 1.1. The debt ratio in 2020 stood at 0.10, exceeding the target
of value (≤ 2). The financial performance of ONAS also greatly improved, and whereas in 2019 ONAS had a negative
result of CFA(US$) 84.3 million, in 2020 ONAS reported a surplus of CFA/(US$) 98.9 million, with the coverage ratio of
cash operating expenses by the sanitation fee of 96%, exceeding the target value of 90%. However, the delayed payment
of public sector customers to SONES, weighs on its financial results. In 2020, delayed and unpaid bills reached CFA 3.3
billion, 11.7% of revenue and 40.7 of profit before tax.
41. Conclusion. The efficiency of the project is rated High, since: (i) results of the economic analysis for the water supply
component are positive and in line with expectations; (ii) the results of the sanitation component exceeded
expectations, both in terms of cost effectiveness and beneficiary population; and (iii) the results of the technical
assistance for water tariffs and the affermage contract significantly exceeded expectations and greatly enhanced the
financial sustainability of the WSS sector.

D. JUSTIFICATION OF OVERALL OUTCOME RATING

42. Given the High Relevance of the PDO, the High Efficacy of achievement of the PDO and the High Efficiency
of achievement, the overall outcome rating of the PEAMU is Highly Satisfactory.

E. OTHER OUTCOMES AND IMPACTS (IF ANY)

Gender
43. The project had a significant impact on households, particularly women, and on poverty levels. Women represent
50% of the 820,000 people directly benefiting from water and sanitation services. Improved access from the perspective
of the MDGs concerns 78% of this target, resulting in a significant gain in terms of reduced public health expenditures
(improved water quality, house connections, hygienic toilets, etc.) and a reduction in the time to fetch water, freeing up
more working time for women and thus improving their economic productivity. Improved access to drinking water has
also contributed to keeping girls in school because the project provided water supply and sewer connections at premises
as they otherwise would fetch water elsewhere.
44. The female population positively impacted by improved access to water and sanitation services is estimated at
319,800, including women and girls. Women particularly benefit from the 20,000 social connections, which corresponds
to around 70,000 women, as they benefit from a reduced risk of harassment while fetching water, improved productivity,
and reduced morbidity and mortality related to waterborne diseases among children.
Institutional Strengthening
45. In addition to capacity building of SONES and ONAS, and the technical assistance for the 2G reform, PEAMU
supported technical assistance to start building the capacity of OFOR (Rural Boreholes Agency - Office des Forages
Ruraux) and DGPRE (Directorate of Water Resources Management and Planning - Direction de la Gestion et de la
Planification des Ressources en Eau). The support for OFOR focused on establishing the first building blocks of financial
sustainability, with a first asset assessment and asset management plan, and including all assets on the balance of OFOR,
an audit of the accounts of “operator’s group” and assistance to select groups for management of rural water supply
schemes and a public awareness campaign on the rural water sector. Technical feasibility of rural water supply schemes

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was enhanced with a study on water treatment for rural areas and feasibility studies and preparation of bidding
documents for the northern areas.
46. The support for DGPRE focused on enhancing the knowledge base for groundwater management and water security
with hydrogeological studies and piezometers for the Horst de Ndiass aquifer system, and test drilling and studies on
the aquifer at the northern coast. The support to the DGPRE also allowed confirmation of the potential for mobilizing
water resources in the Bayakh and Diender catchment areas on the outskirts of Dakar. These resources subsequently
enabled SONES to carry out technical studies and to finance, with its own funds, the construction of 11 additional
boreholes, which increased the volume of water that could be mobilized for Dakar to improve the rate of coverage of
peak needs.

Mobilizing Private Sector Financing

47. Since 2020, SEN EAU has invested CFA 439 million in the renewal of production infrastructures and has renewed
31,517 meters of pipe, 15 204 meters, and 6 876 household connections. The potable water sector is now considered
to be sufficiently mature and financially viable to attract more private financing for further development. It is envisaged
that the water infrastructure which is planned to be constructed to meet the water demand for the Dakar-Mbour-Thies
triangle will be managed through a Build-Operate-Transfer contract including private sector financing.

Poverty Reduction and Shared Prosperity

48. PEAMU significantly contributed to raising overall access rates to drinking water and sanitation in urban areas, and
thus has helped to reduce certain poverty criteria according to the UN, including improving the limited access to basic
services directly related to the health of the population, and social discrimination, particularly in a period of pandemic
where health and social inclusion are at the heart of the concerns of public authorities and citizens. It has also
contributed to reducing disparity between urban and rural areas by promoting access to drinking water in 4 villages
connected to the water transfer pipeline from Tassette to Thiès. By systematically promoting local jobs with equal skills,
the project has helped to improve the income of several dozen young people in the localities crossed. In addition, the
80% satisfaction rate among beneficiaries is a good indicator of the project's social accountability.
Other Unintended Outcomes and Impacts
49. The technical assistance provided under PEAMU informed the preparation of the Senegal Rural Water Supply and
Sanitation Project (P164262 – US$ 130 m), which was approved in 2018, and started building the capacity of OFOR as
one of the implementing agencies for this project (jointly with ONAS and DGPRE).

III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME

A. KEY FACTORS DURING PREPARATION
50. Two critical factors during project preparation were: (i) the consistency of the project implementation team and
task team over multiple years, building up rapport with Government, and accumulating experience in the sector to
adequately identify the next steps required to advance the reform; and (ii) accumulating technical know-how and
incorporating master planning and engineering studies under the projects, hence contributing to both fast and accurate
project preparation. The Bank task team hardly changed over the course of the previous project and PEAMU, and the
procedure remained the same over the 4 water sector projects: the task team leader would train the co-task team
leader, who would become the task team leader and train the next co-task team leader to become the task team leader.
Incoming task team leaders had ample experience both in the sector and in the country, and intimate knowledge of the

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institutional and technical issues, and of the key priorities in advancing the reform agenda. A similar procedure was in
place with SONES, ONAS and PEPAM, with hands-on training and hand-over from directors to deputy directors,
maintaining institutional knowledge. As PEPAM-PCU was financed through the IDA-projects, it remained relatively
independent from short-term political agendas, and was in the position to engage with Government in a constructive
dialogue, to help subsequent Government administrations formulate and implement a long-term Senegalese vision for
the water sector, and to structure the World Bank-financed projects along this vision, without having to include loan
conditionalities based on the reform progress, as is common practice in similar reform projects.
51. The technical and institutional experience manifested itself in the realistic objectives, well defined components
aligned with the objectives, and clear and realistic indicators and M&E framework aligned with the PDO and the
objectives. The Government, in agreement with the World Bank, allowed the implementation structures and the
Coordination Unit to use the residual funds from the previous project (PEPAM-IDA) to finance a large part of the
technical, environmental, and social studies that made it possible to have tender documents available very early on and
thus to maximize the credit commitment rate in the first year of implementation.. As a result of this high quality at
entry, the project was implemented with hardly any deviations from the design at appraisal: (i) the cost estimates for
the civil works and goods procured where within 3% of the actual costs, and the volume of works (number of
connections, length of pipelines and sewers, water production and storage capacity) was around 3-5% higher than
designed at appraisal; (ii) target values for the indicators, both the outcome as well as the intermediate results indicator
were met or exceeded by 3-5%, indicating the experience in estimating the outcomes based on the outputs; and (iii)
procurement planning and disbursement estimates closely matched the actual procurement and disbursements, with
only minor divergence in timing, and actual disbursement being within 3% of projected disbursement (except for the
start of the COVID-19 pandemic, when disbursement fell behind projections). Previous projects included financing for
the development of master plans, engineering studies and bidding documents, so the procurement process for several
bid packages could start at appraisal.
52. A core element for the quality of preparation (including cost estimates, procurement planning and disbursement
projections) was the Financial Model that had been developed by and for SONES during the first project in the water
sector (Water Sector Project, approved 1995). Build on an asset management plan, and including projections of future
investments, debt servicing payments and receivables from the water tariff, the Financial Model was and is constantly
updated, and indicates the sustainable level and financial equilibrium of tariffs and investments to ensure adequate and
long-term water supply. For ONAS, enhancing their financial model was part of project design, as was asset management
valuation and planning for OFOR, thus laying the foundation for achievement of the financial sustainability outcomes
and working to a financial equilibrium similar to SONES. A critical contribution to preparation was the assurance from
Government to decrease the reliance of the financial equilibrium on public customers. Tariffs paid by public customers
were higher but also more frequent subject to default, jeopardizing the financial equilibrium. Reducing the gap between
the tariffs and payment rate of public and private customers, hence decreased the reliance on the financial prudence of
the public customers.

B. KEY FACTORS DURING IMPLEMENTATION

53. A key factor for sound implementation was strong commitment from the Government, which was demonstrated in
the clear division of roles and responsibilities and the distinct mandate of each agency involved in project
implementation. The project was implemented under the aegis of the Steering Committee (CCS - Comité de
coordination et de suivi), which included representatives of the Ministry of Water and Sanitation (MHA - Ministère de
l’Hydraulique et de l’Assainissement), Ministry of Economy, Finance and Planning (MEFP - Ministère de l’Économie, des

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Finances et du Plan), Directorate of Environment (DEEC - Direction de l’Environnement et des Établissements Classés),
SONES, ONAS and OFOR and the PEPAM-PCU as the CCS secretary. PEPAM-PCU under the MHA, had overall fiduciary
responsibility, including financial management and planning, planning and implementation of procurement,
implementing Component 3 on institutional support and reform, and overall project monitoring and evaluation.
54. SONES was responsible for implementation of Component 1, including preparation of draft procurement
documents, supervision of works, consultancy services and delivery of goods, and regular progress reporting. ONAS had
similar responsibilities for the implementation of Component 2. OFOR and DGPRE where mostly beneficiaries of
technical assistance provided under Component 3, and quality control of the technical studies conducted under
Component 3. The urban water utility (SdE then SEN’EAU) had overall responsibility for management of the
infrastructure assets of SONES, provision of water services, contribution to tender documents of works commissioned
under PEAMU, participate in provisional and final acceptance of commissioning of works, inclusion of additional areas
under the affermage contract, and management of assets constructed under the PEAMU.
55. The Ministry of Environment and Sustainable Development was responsible for validating compliance with social
and environmental procedures, and the Ministry of Interior through its offices at the decentralized level was the chair
of the Grievance Redress Mechanism, responsible for validating resettlement procedures and compensation. The
Ministry of Local Authorities, Development and Spatial Planning was responsible for facilitating access to construction
sites, local community outreach and consultation, and identification of beneficiaries for social water and sewage
connections.
56. A critical factor for the success of the project was the technical assistance for the 2G sector reform, and the
implementation, support provided by the World Bank task team in this process. Based on technical advisory work
commission by the PEPAM-PCU under the project, and World Bank analytical work and dialogue of the task team with
the MHA, it was decided that it would be feasible and probably beneficial to re-launch the bidding process of the
affermage contract, and not follow the standard practice of extending the existing affermage contract or convert the
contract to concession agreement, based on terms established when the operator/concessionaire bid for the original
contract. This decision delayed at first the signing of the second affermage contract, but showed to have great benefits,
as the new concessionaire decreased the cost to SONES for service delivery by 20%, thus greatly enhancing the financial
equilibrium of SONES and creating the possibility to cross-subsidize sanitation expenditures from the water tariffs.
During implementation, the Bank acted on the deteriorating coverage of operating expenditures of ONAS, as a result of
the fixed sanitation tariff and non-payment of bills by public customers. Following a dialogue with the Government, the
Minister of Water and Sanitation took adequate steps to enhance the cost recovery of ONAS, by passing the relevant
regulations and Ministerial Order to raise the sanitation tariffs and work with public customers to pay their bills.
57. The World Bank had strong rapport with the Government to ensure that strong commitment was maintained. The
task team was based in Dakar or in the region, and both through regular and candid Aide Memoires and Management
Letters, and regular meetings with key Government counterparts, outside of missions, ensured that the Bank provided
all necessary implementation support to maintain implementation progress and achieve the PDOs.
58. The focus of PEAMU and its predecessor projects on water resources and groundwater planning, water and
sanitation master planning, and the preparation of engineering documentation for the next batch of priority civil works,
was a key factor in the preparation of the Additional Financing to relieve imminent water scarcity in the area of Mbour
and Petite Cote through financing a transmission line to the AGL3 system. The AF could be prepared rapidly, whilst the
parent project had disbursed only 18%, because more than half of the funds had been contracted already, all funds had
been earmarked, and engineering documentation for the works to be financed under the AF were ready.

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59. The impact of the COVID-19 pandemic on implementation progress was significant, and disbursement started
falling behind. However, the implementation of a modified work program and the experience of the implementing
agencies eventually ensured the timely achievement of the PDOs and the outcome indicators.

IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME

A. QUALITY OF MONITORING AND EVALUATION (M&E)
M&E Design
60. Although the PAD did not include a theory of change, the ToC was clear from the design of the PDO, the outcome
indicators, the intermediate results indicators and the activities, and it was simple to construct for the purposes of this
Implementation Completion and Results Report. The results indicators were adequate to measure progress towards the
achievement of the PDOs and could be measured with effective Monitoring and Evaluation (M&E) arrangements. The
M&E design covered all relevant aspects of the ToC of PEAMU and covered all relevant aspects of the project. To cover
the contribution of PEAMU to water resources planning and security, the RF could have included an intermediate results
indicator on future water security and water availability, like the potential daily water production which could be feasibly
developed.
M&E Implementation
61. PEAMU’s M&E system was based on the comprehensive system developed with assistance of the World Bank under
previous projects. The system included all aspects of project implementation and the elements of the ToC, including
progress on key indicators, procurement and financial progress, supervision of works and construction progress, and
survey data. The system drew on several databases from all agencies involved, provided detailed information on access
to WSS services at the national and subnational levels, and used information on access collected by SONES, SdE/SEN’EAU
and ONAS in urban areas. Technical and financial data were verified through engineering supervision reports and financial
audits. All data and data on indicators were collected on time and were reported on by PEPAM-PCU during project
implementation. The M&E system could be accessed by all institutional stakeholders through a web-based interface.
M&E Utilization
62. The M&E data were used for the joint annual reviews of PEAMU conducted by the CCS. Outcome and intermediate
results indicators were used by the Bank’s task team to monitor progress, both on outcome and results indicators, as well
as on completion of project activities and completion of civil works. Completion of critical infrastructure was verified
through field visits, and emphasized that the M&E system was accurate and reliable.
Justification of Overall Rating of Quality of M&E
63. The M&E system as designed and implemented was more than sufficient to assess the achievement of the objectives
and attribution to the project through the ToC. The M&E system was well developed, widely disseminated and accessible,
informed the management of the PEAMU and the 2G reform. The M&E system could be strengthened by including an
indicator on future water production which could be easily developed. However, since this potential water production is
identified in the Master Plan for Dakar-Thies and through additional hydrogeological studies, this is only a minor short-
coming. Therefore the overall rating of the quality of M&E is High.

B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE

64. Environmental and Social Safeguards: Four environmental and social operational policies (OPs) were triggered during
preparation: (i) Environmental Assessment (OP 4.01); (ii) Natural Habitats (OP 4.04); (iii) Physical and Cultural Resources
(OP 4.11); and (iv) Involuntary Resettlement (OP 4.12). The consideration of these policies resulted in the development
of an Environmental and Social Management Framework, Resettlement Policy Framework, Environmental and Social

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Impact Assessment (ESIA) and a Resettlement Action Plan (RAP) for the original project and an amended ESIA and RAP for
the Additional Financing. Relevant safeguard documents were approved and published at the country level and on the
Bank's website. The project was classified Environment Category B because of potential moderate negative impacts from
the projects’ activities.
65. Overall compliance with Environmental and Social Safeguards was Satisfactory. Supervision of safeguard compliance
was done by SONES and ONAS through dedicated and qualified specialists and through the supervision of the engineering
consulting firm. All contractors except one (for Tassette pumping station) had in place Contractor Environmental and
Social Management Plans (C-ESMPs) and Occupational Health and Safety (OHS) plans. Works were finalized in line with
OHS aspects, and only one incident and two accidents in early 2020 were reported and resolved in line with C-ESMPs and
OHS plans. Compensatory reforestation for vegetation removed during construction was implemented by SONES in
cooperation with the Mbour Water and Forestry Service. RAPs initially based on national legislation, but following an
audit were made fully compliant and implemented in line with OP4.12 including compensation of project-affected people
and the establishment of the Grievance Redress Mechanism.
66. Fiduciary compliance. Fiduciary compliance has been monitored by the Bank specialists based in Dakar. The
recommendations of the periodic reviews were largely implemented by the PCU. The financial management (FM) and
procurement assessments found that the project’s FM and procurement performance was satisfactory over the course of
the project and that reporting and audits covenants were complied with. Only towards the end of the project, a minor
auditing issue emerged and was resolved regarding a discrepancy in the list of fixed assets.

C. BANK PERFORMANCE
Quality at Entry
67. The quality at entry of the project was high. The project was well aligned with the CPF and the Government vision
for the development of Senegal. The Bank task team adequately identified and prepared technical, financing and
economic aspects, and ensured the focus of PEAMU on poverty aspects through the construction of household
connections. In addition, the task team was based in the region and was therefore able to have a very close collaboration
with Government counterparts over the course of project preparation.
Quality of Supervision
68. The World Bank task team leader and co-task team leader, environmental and social safeguard specialists and
fiduciary specialists were all based in Senegal or in the region, enabling frequent implementation support in between the
12 formal implementation support missions which were conducted. Management Letters, Aide Memoires and
Implementation Status Reports were candid in assessing the progress towards meeting the PDOs, and timely flagged
relevant issues. Most notably, the task team: (i) rapidly prepared the Additional Financing to mitigate impending water
shortages for the areas of Petite Cote and Mbour; and (ii) maintained a strong dialogue with Government which
facilitated the signing of a second affermage contract, raising the sanitation tariff, and addressing the issue of tariff non-
payment by public customers.
Justification of Overall Rating of Bank Performance
69. Since there were no shortcomings in the Bank performance in ensuring quality at entry and quality of supervision,
and since the overall outcome rating of PEAMU is Highly Satisfactory, Bank performance is rated Highly Satisfactory.
D. RISK TO DEVELOPMENT OUTCOME
70. The risk to the development outcome is overall low. All the infrastructure constructed under the project and the
corresponding improvements in access to improved water and sanitation services have been incorporated in the

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coverage area and general operation of SEN’EAU, SONES and ONAS. The risk to maintaining financial equilibrium and
cost recover is low for water services, since a 10-year affermage contract at reduced tariffs has been signed, and
moderate for ONAS. The financial outlook for ONAS and SONES to a lesser extend) would benefit from a stronger
commitment from Government not to tolerate non-payment of sanitation tariffs by public customers and timely
settlement of arrears in bill paying.
71. The risk for water production and security for all areas supported under the PEAMU are low, with the additional
of the connection to AGL3 and new boreholes in the Thies and Tassette areas. Longer-term water security, where
shortage might be exacerbated by climate change and reduced aquifer recharge might threaten the sustainability of
bulk water supply vis-a-vis a growing demand in the Dakar Metropolitan area, so future projects should continue to
include identification and engineering assessments of water production and water reuse. Also, the existing tariff block
structure (the more one uses, the higher price one pays per m3 of water) might be modified in the future and
complemented with additional measures to decrease per capita water usage to meet sustainable water supply levels.
V. LESSONS AND RECOMMENDATIONS
72. Financial model of the sector to leverage private sector investments. Building a strong financial, technical
and organizational track record and establishing an agreed financial model for the sector, are essential for private
operators to assess and price the risk associated with affermage contracts. If a solid track record has been
established, affermage contracts can be re-launched to obtain significantly better contract terms, instead of re-
negotiating and extending an existing affermage contract. The financial model is a powerful tool to foster
dialogue and buy-in by all stakeholders and reach a common vision of the sector and the Government on
balancing sector investments and long-term financial sustainability with a politically and socially acceptable tariff
policy. For future investment, the maturity of the sector and the consensus of the key stakeholders on the
development of the sector, will enable private sector investments not only in water distribution and household
connections, but also in bulk water supply to alleviate water shortages. This is in line with the recommendations
of the February 2022 World Bank study on “Challenges and Recommendations for Water Security in Senegal at
National Level and in the Dakar-Mbour-Thiès Triangle.”
73. Long-term commitment and consistency for sector reform. The project benefitted from a long-term
commitment and consistency on three aspects: (i) independent financing of PEPAM-PCU; (ii) consistent World
Bank task teams and implementation support; and (iii) Bank commitment to a series of IPFs. Regarding the
PEPAM-PCU, the financing through project resources rather than through the government budget, enabled it to
move beyond the role of a project implementing agency, and become a strategic agent of change, designing,
implementing and coordinating complex and long-term sector reforms, with relative independence from short-
term political agendas and decision making. The consistency in the World Bank task teams contributed to the
development and implementation of these reforms, as the teams had little turn-over of task team leaders and
team members, and a strong knowledge of the sector, implementation capacities, the national institutions and
the key stakeholders and agents of change. The Bank’s long-term commitment to the sector reform was evident
through the structuring of a series of IPFs, with each IPF a logical step in the long-term vision and development
plan for the sector, and every IPF building on the implementation capacity, studies, reforms and engineering
documents developed under the previous IPF. Building on this commitment from the Bank to the development
and the maturity of the sector, the next projects should consider using the PforR instrument, building on the
Government systems.
74. Mainstream social and pro-poor aspects in water supply and sanitation services. ONAS and SONES have
mainstreamed pro-poor aspects in their routine business, and have adopted targeted subsidies for social water

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and sewerage connections as a critical element for ensuring a pro-poor policy within the framework of a public-
private partnership and affermage contract for the provision of water and sanitation services. Given the strong
positive results addressing issues with social inclusion and gender disparities, future projects in the sector could
more explicitly target these outcomes through including them in the PDO, the custom indicators and more
extensive monitoring and evaluation. SONES has also enhanced their internal social safeguards capacity for day-
to-day business, and created a special safeguards division, which greatly facilitated timely identification and
compensation of project-affected people.
75. Long-term water security requires investments in studies and monitoring. Long-term water resources
planning and investments in water security to guarantee future supply of potable water to large metropolitan
areas, requires constant investment in technical assistance for water resources studies, groundwater exploration,
alternatives for bulk water supply through desalination, and the feasibility studies and engineering documents
for the critical civil works to secure water supply. PEAMU investments in monitoring for sustainable monitoring
and exploitation of groundwater through piezometers and hydrogeological models of the heavily overexploited
Horst de Diass aquifer, are critical, since this aquifer provides a third of the water supply for Greater Dakar.
Future projects will need to continue this assistance, and expand on monitoring groundwater withdrawals
through water metering.
.

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ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS

A. RESULTS INDICATORS

A.1 PDO Indicators

Objective/Outcome: Improve access to water services in urban areas

Formally Revised Actual Achieved at
Indicator Name Unit of Measure Baseline Original Target
Target Completion

Number of people in urban Number 0.00 180,000.00 180,000.00 180,000.00

areas provided with access to
Improved Water Sources 14-Apr-2015 30-Jun-2020 31-Dec-2021 30-Apr-2018
under the project

Comments (achievements against targets):

The water conveyance, water storage and 20,000 social water connections financed under the PEAMU benefitted on average 9 people per connection, so
180,000 people in total.

Number of people per connection verified through various studies and surveys.

Formally Revised Actual Achieved at

Indicator Name Unit of Measure Baseline Original Target
Target Completion

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People with access to Number 0.00 330,000.00 560,000.00 562,000.00

enhanced water supply
services under the Project 14-Apr-2015 30-Jun-2020 31-Dec-2021 31-Dec-2021

Comments (achievements against targets):

This result is calculated as follows:

Number of people = (Additional water production of PEAMU financed facilities (m3/day) x 0.8 (network efficiency)) / (1.3 (peak factor) x 0.065 (m3/cap.day
average daily consumption per capita))

Objective/Outcome: Improved access to sanitation services in urban areas

Formally Revised Actual Achieved at
Indicator Name Unit of Measure Baseline Original Target
Target Completion

People provided with access Number 0.00 80,000.00 80,000.00 83,694.00

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to "improved sanitation 14-Apr-2015 30-Jun-2020 31-Dec-2021 17-Sep-2021

facilities” under the proj.

Comments (achievements against targets):

This result is calculated as follows:

Number of people in urban areas provided with access to “improved sanitation” under the Project = (Number of new sewer connections + Number of on-
site sanitation facilities) x 13 people per connection or per on-site facility.

NB: The average number of people per water connection (9) is lower than the average number of people per sewerage connection (13) because there is
only one sewerage connection per compound/housing unit, while there may be multiple water connections per compound/housing unit. Number of
people per connection verified through various studies and surveys.

Objective/Outcome: Improve access in a financially sustainable manner

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Formally Revised Actual Achieved at

Indicator Name Unit of Measure Baseline Original Target
Target Completion

Financial equilibrium of the Yes/No Yes Yes Yes Yes

urban water supply sub-
sector 14-Apr-2015 30-Jun-2020 31-Dec-2021 17-Sep-2021

Comments (achievements against targets):

Based on SONES financial reporting. Financial equilibrium has been maintained throughout the project. Equilibrium defined as: "SONES’ net cash balance
(previous year plus net cash flow from operations minus debt service and variation of working capital requirements) positive or equal to zero".

Using "debt service coverage ratio" (the ability of SONES to generate enough income to cover its debt payments) as a proxy indicator substantiates the
results on financial equilibrium of SONES, as the ratio in every project year remains well above a target value of 1.1:

2015 - 1.40; 2016 - 1.58; 2017 - 1.92; 2018 - 1.14; 2019 - 1.23; 2020 - 1.86; 2021 - 1.46

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Formally Revised Actual Achieved at

Indicator Name Unit of Measure Baseline Original Target
Target Completion

Coverage of cash operating Percentage 69.00 90.00 90.00 96.00

expenditures of sewerage
activities of ONAS 14-Apr-2015 30-Jun-2020 31-Dec-2021 17-Sep-2021

Comments (achievements against targets):

Based on ONAS financial reporting. Coverage is defined as: "Annual revenues from sewage surcharges/Annual cash operating expenditures of ONAS’
sewage activities."

Progress over the project implementation period:

Baseline 08/2015 = 69%; 11/2016 = 85%; 09/2017 = 83%; 10/2018 = 90%; 09/2019 = 85%; 03/2020 = 78%; 09/2020 = 78%; 03/2021 = 96%; 10/2021 = 96%

Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at
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Target Completion
Beneficiaries that feel project Percentage 0.00 80.00 80.00 89.70
investments reflected their
needs (percentage) 14-Apr-2015 30-Jun-2020 31-Dec-2021 31-Dec-2021

Beneficiaries that feel Number 0.00 236,000.00 328,000.00 370,169.00

project inv. reflected their
needs - female (number)

Beneficiaries that feel Number 0.00 236,000.00 328,000.00 370,169.00

project inv. reflected their
needs - male (number)

Comments (achievements against targets):

At MTR (2019) 81.7% of respondents indicated that the PEAMU reflected their needs.

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Formally Revised Actual Achieved at

Indicator Name Unit of Measure Baseline Original Target
Target Completion

Direct project beneficiaries Number 0.00 590,000.00 820,000.00 825,349.00

14-Apr-2015 30-Jun-2020 31-Dec-2021 31-Dec-2021

Female beneficiaries Percentage 0.00 50.00 50.00

Comments (achievements against targets):

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A.2 Intermediate Results Indicators

Component: Component 1: Water Supply

Formally Revised Actual Achieved at
Indicator Name Unit of Measure Baseline Original Target
Target Completion

Additional water production Cubic 0.00 35,500.00 35,500.00 35,243.00

capacity constructed under Meter(m3)
the Project
14-Apr-2015 30-Jun-2020 31-Dec-2021 31-Dec-2021

Comments (achievements against targets):

Monitored through construction supervision and completion reports.

Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at

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Target Completion
New piped household water Number 0.00 20,000.00 20,000.00 20,000.00
connections that are
resulting from the project 14-Apr-2015 30-Jun-2020 31-Dec-2021 30-Apr-2018
intervention

Comments (achievements against targets):

Monitored through construction supervision and completion reports.

Formally Revised Actual Achieved at

Indicator Name Unit of Measure Baseline Original Target
Target Completion

Water storage capacity Cubic 0.00 24,600.00 24,600.00 25,400.00

constructed under the Meter(m3)

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Project 14-Apr-2015 30-Jun-2021 31-Dec-2021 17-Sep-2021

Comments (achievements against targets):

Monitored through construction supervision and completion reports.

Formally Revised Actual Achieved at

Indicator Name Unit of Measure Baseline Original Target
Target Completion

Length of feeder pipes Kilometers 0.00 45.00 99.50 117.00

constructed under the
Project 14-Apr-2015 30-Jun-2020 31-Dec-2021 17-Sep-2021

Comments (achievements against targets):

Monitored through construction supervision and completion reports.

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Component: Component 2: Sanitation

Formally Revised Actual Achieved at
Indicator Name Unit of Measure Baseline Original Target
Target Completion

New household sewer Number 0.00 6,000.00 6,000.00 6,117.00

connections constructed
under the project 14-Apr-2015 30-Jun-2020 31-Dec-2021 17-Sep-2021

Comments (achievements against targets):

Monitored through construction supervision and completion reports.

Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at
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Target Completion
On-site sanitation facilities Number 0.00 320.00 320.00 321.00
constructed under the
Project 14-Apr-2015 30-Jun-2021 31-Dec-2021 17-Sep-2021

Comments (achievements against targets):

Monitored through construction supervision and completion reports.

Formally Revised Actual Achieved at

Indicator Name Unit of Measure Baseline Original Target
Target Completion

Length of sewers constructed Kilometers 0.00 100.00 100.00 100.00

under the Project
14-Apr-2015 30-Jun-2020 31-Dec-2021 30-Nov-2021

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Comments (achievements against targets):

Monitored through construction supervision and completion reports.

Component: Component 3: Institutional Strengthening and Project Management

Formally Revised Actual Achieved at
Indicator Name Unit of Measure Baseline Original Target
Target Completion

Adoption of a new Yes/No No Yes Yes Yes

institutional framework for
urban water and sanitation 14-Apr-2015 30-Jun-2020 31-Dec-2021 29-Sep-2017

Comments (achievements against targets):

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KEY OUTPUTS BY COMPONENT

A. KEY OUTPUTS BY COMPONENT

Objective/Outcome 1 “Improve access to water services in urban areas”

1. Number of people in urban areas provided with
access to “Improved Water Sources” – 180,000
Outcome Indicators
2. Number of people with access to enhanced water
supply services – 562,000
1. Additional water production capacity constructed
under the Project – 35,243 m3/day
2. New piped household water connections that are
Intermediate Results resulting from the project intervention – 20,000
Indicators 3. Water storage capacity constructed under the
Project – 25,400 m3
4. Length of feeder pipes constructed under the
Project – 117 km
1. Bulk water production through construction of
groundwater wells - #
Key Outputs by Component 2.Bulk water distribution through construction of
(linked to the achievement water transmission line, water storage and pumping
of the Objective/Outcome 1) stations - #
3. Household connections through construction of
connections and distribution networks – 20,000
Objective/Outcome 2“Improve access to sanitation services in urban areas”
1. Number of people in urban areas provided with
Outcome Indicators access to “Improved Sanitation” under the project. -
83,694
1. New household sewer connections constructed
under the project – 6,117
Intermediate Results 2. On-site sanitation facilities constructed under the
Indicators Project – 321
3. Length of sewers constructed under the Project –
100 km
Key Outputs by Component 1. Household connections to sewerage system
(linked to the achievement through financing household connections.
of the Objective/Outcome 2)
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2. On-site sanitation through construction on on-site

facilities
3. Transmission of sewage through construction of
sewer networks.
4. Treatment of sewage and septage through
construction/rehabilitation of septage and
wastewater treatment facilities.
Objective/Outcome 3 “Improve access in a financially sustainable manner”
1. Financial equilibrium of the urban water sector
maintained. - Yes
Outcome Indicators
2. Coverage of cash operating expenditures of
sewerage activities of ONAS. – 96%
Intermediate Results 1. Adoption of a new institutional framework for
Indicators urban water and sanitation - Yes
1. Improved equilibrium through modified water
tariff and new affermage contract, facilitated through
Key Outputs by Component
technical assistance.
(linked to the achievement
2. Improved coverage of ONAS operating
of the Objective/Outcome 3)
expenditures with increased sanitation tariff,
facilitated through technical assistance.

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ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION

B. TASK TEAM MEMBERS

Name Role
Preparation
Matar Fall Task Team Leader(s)

Mountaga Ndiaye Procurement Specialist(s)

Fatou Fall Samba Financial Management Specialist

Pierre Francois-Xavier Boulenger Team Member

Oumar Diallo Team Member

Maya Abi Karam Counsel

Mouhamed Fadel Ndaw Team Member

Madio Fall Team Member

Pier Francesco Mantovani Peer Reviewer

Charles Delfieux Peer Reviewer

Astou Diaw-Ba Team Member

Maman-Sani Issa Social Specialist

Marie-Adele Tchakounte Sitchet Team Member

Yacouba Konate Social Specialist

Sudipto Sarkar Peer Reviewer

Richard Verspyck Team Member

Supervision/ICR

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Mouhamed Fadel Ndaw, Oumar Diallo Task Team Leader(s)

Ndeye Fatou Mbacke, Laurent Mehdi Brito, Procurement Specialist(s)
Mountaga Ndiaye
Fatou Fall Samba Financial Management Specialist
Jean Vincent Koua Team Member
Anta Tall Diallo Procurement Team
Seynabou Thiaw Seye Procurement Team
Astou Diaw-Ba Procurement Team
Medou Lo Environmental Specialist
Ndeye Absa Cisse Team Member
Arame Diattara Team Member
Mamadou Moustapha Ndoye Social Specialist
Sophie Lo Diop Environmental Specialist
Apolline Angel Bancole Ep Gaye Team Member
Dieynaba Bocoume Team Member
Fatoumata Kone Procurement Team

C. STAFF TIME AND COST

Staff Time and Cost

Stage of Project Cycle
No. of staff weeks US$ (including travel and consultant costs)
Preparation
FY15 22.519 194,020.20
FY16 3.725 30,955.14
FY17 .450 5,765.80
FY18 0 0.00
FY19 0 955.12

Total 26.69 231,696.26

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Supervision/ICR
FY16 11.885 92,579.68
FY17 12.510 125,326.00
FY18 16.747 116,018.08
FY19 21.550 151,658.80
FY20 40.643 171,110.22
Total 103.34 656,692.78

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ANNEX 3. PROJECT COST BY COMPONENT

Amount at Approval Actual at Project Percentage of Approval

Components
(US$M) Closing (US$M) (US$M)
Component 1: Water
77.64 73.65 95
Supply
Component 2: Sanitation 16.8 19.46 116
Component 3: Institutional
Strengthening and Project 5.56 5.81 105
Management
Total 100.00 100.00 0.00

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ANNEX 4. EFFICIENCY ANALYSIS

Economic and financial analysis of the PEAMU project

1. The objective of the PEAMU and its Additional Financing was to increase access to safe drinking water and sanitation
for the less privileged urban and rural populations in a sustainable manner through an investment program of
strengthening, expansion and rehabilitation of WSS services. The project covered the regions of Dakar, Thiès (Mbour,
Tassette, Joal, Nguekhokh), and 4 urban centers. The original project of US$ 70 m became effective on October 26, 2015,
and an Additional Financing (AF) of US$ 30 m became effective on August 18, 2017. The project closed on December 31,
2021. An ex-post financial and economic analysis of the project's impacts was done to assess the performance of the
PEAMU at completion stage, against the targets of the results indicators specified in the results framework of the original
project and its AF.
2. The economic and financial analysis conducted at PAD and AF stage were revised in order to: (i) update the data,
parameters and assumptions used to establish the level of financial and economic criteria; and (ii) broaden the scope of
the analysis of the project's economic impacts in light of the obtained results. The methodology is based on the
methodology outlines in Annex 5 of the PAD and Annex 5 of the Project Paper for the AF. This ex-post economic analysis
thus updates economic analysis performed for the original project and for the additional funding by taking into account
the actual implementation of the PEAMU at the completion date and the impact of its activities. The financial analysis
section assesses the financial impact of PEAMU on the financial viability of SONES and ONAS.
3. The ex-post evaluation shows that: (a) the PEAMU generates a satisfactory EIRR and NPV overall. The results obtained
thus confirm the good performance of the project recorded during its implementation and reflected in the results
indicators. Water supply, which accounts for 78.9% of the project cost, generates a net present value of US$ 33.77 million
and an EIRR of 12.7%. As for sanitation, which represents 16.8% of the project cost, it consequently contributes to the
reduction of the household budget for expenses related to the emptying of septic tanks and health expenses evaluated
at nearly US$ 13 and US$ 16 per household/year. The project has contributed significantly to the financial viability of the
water and sanitation operations of SONES and ONAS, but the sustainability of this viability could and should be further
enhanced through payment by public sector customers or their outstanding bills.

A Economic Analysis
4. Methodology. The cost-benefit analysis was updated to assess the EIRR and NPV of all activities under the original
project and the AF. For the water component, the methodology used in the PAD was expanded to include additional
benefits attributable to the PEAMU. These benefits now include: (i) the direct benefits resulting from increased water
consumption, and the consumer surplus accruing to accruing to beneficiaries shifting from other water sources to
connections or standpipes; and (ii) the avoided time cost (ATC) associated with the reduction of hauling water for women
and girls. Project costs include capital costs, incremental operating costs (energy and chemicals, commercial costs, and
maintenance costs). For the sanitation component, a cost effectiveness analysis is done in line with the methodology in
the PAD, expanded with additional analysis on health benefits in line with guidance notes from the World Bank's Water
and Sanitation Program (WSP). ). The economic analysis is conducted at a constant price.

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Drinking water supply

5. Investment cost. The investments made by the project have been reconstructed year by year and by cost over the
period 2015-2021. The costs take into account (i) the actual costs of carrying out the activities; (ii) 60% of the cost of the
transfer line designed to meet the water needs of the AIBD area and the Petite Côte until 2035, i.e. beyond the volumes
of water needed to eliminate the water deficits taken into account under PEAMU; and (iii) 50% of the cost of the ALG3-
AIBD pipeline (US$ 7.1 million) financed by the AfDB because its realization complements the PEAMU investments and
thus allows the water needs of the AIDB area and the Petite Côte to be transferred .The summary of investment costs by
sub-component is presented in Table 2.

Table 2 – Investment Costs for Economic Analysis (CFAF, millions)

Activities PAD Analysis FA Analysis Ex-post Analysis
Tassete and Petite Côte 20 560 30 147 34 189
Nguekhokh 1 840 1 721 1 698
Social connections 2 800 2 835 2 835
Project management (including safeguards] 723 816 816
Total 25 923 35 519 39 538
Source: Additional funding, adjusted from last column

6. The cost differential between the AF analysis and the ex-post analysis is due to the fact that in the AF analysis it was
found that the original project procurement generated substantial savings since the contracts for water transfer, water
storage and drilling were awarded at 54% of the estimated cost of the PAD (page 32). The ex-post analysis noted that
actual savings at the end of the project were less than estimated at the time of the AF. Actual costs of the activities
obtained as of December 31, 2021 were 26.822 billion FCFA, i.e. a rate of 94.6% of the 28.349 billion FCFA (page 27). For
the additional financing, the estimated costs were 17.245 billion CFA francs (page 28, FA), with actual costs of 14.468
billion CFA francs, i.e. a rate of 83.9%. Costs were higher than estimated for the ALG3-AIDB conveyance (financed by the
AfDB) and the AIDB-Mbour conveyance.
7. Operating costs. The operating costs contained in the AF operating document remain unchanged.
8. Benefits attributable to the project. The additional benefits generated by the project activities are listed in Table 3,
which also links the activities to the project objectives:

Table 3 - Economic benefits of the project

Development objective/ Additional benefits
Activities
Improving access to water One of the results of the project is the increase in water production capacity,
services providing a water production of 35,243 m3/day. In addition, the construction of
transfer and connection pipelines helps to fill the water shortages in the affected
areas. All these achievements generate additional water consumption from
existing subscribers.

The project's performance places the level of benefits over time as follows:
•Tassette and Petite Côte

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-Since October 2018, annual water production has reached 33,914 m3/day and
distributed to Thies and Dakar; increased benefits are recognized in water
revenues from existing subscribers.
-After 2021 (and the commissioning of ALG3), ALG3water will be
transmitted to Petite Côte via AIBD and Mbour; the benefits recognized are the
additional water revenues from existing customers.
Water produced by the facilities is distributed to urban centers on Petite Cote;
•Mbour-Mbodiène and profits are augmented by water revenues from existing users.
Nguekhokh
Increase access to drinking water The following benefits are accounted for:
(social connections) -Additional water revenue from new connections
-Consumer surplus accrues to beneficiaries
Reduction of gender inequalities Valuation of time saving for women and girls representing about 50% of the
(PAD, &26) beneficiaries at the level of social connections. The time saving is valued by
opportunity cost of unskilled labor.

9. Direct project revenues. In the PAD and the AF, the number of project beneficiaries is calculated on the basis of annual
water production and the number of people per household for social connections. In the ex-post analysis, the project data
contained in the performance framework are used and the beneficiaries are then broken down by component as follows.

Table 4 – Consumption and Water Rates

No. Of people Consumption Average
Served (liters per Revenue
capita per (CFAF/m3)
day)
Beneficiaries
Dakar and Thies Consumers 219 000 65 477
Petite Côte Consommers 528 000 65 465
Nguekhokh Consommers 43 000 60 376
Household with social 9 per
connexion household 50 306
Source: Additional Project Funding, page 33, adjusted with performance framework

10. Consumer surplus. The calculation is carried out taking into account the assumptions of the AF which remain valid,
they are recorded in Table 5. The consumer surplus is equal to the increase in water consumption multiplied by the
difference in the price of water paid before and after the project and by the price elasticity (0.5).

Table 5 - Consumption and Water Prices with and without the project
Without Project With Project
Consumption Consumption
Current/Future % of (Liters per Average (Liters per Average
source of supply Unconnected capita per Price capita per Price
Households day) (CFAF/m3) day) (CFAF/m3)

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Standpost/social 41 20 1.228 50 306

connection
Open well/Social 43 25 0 50 306
connection
Neighbor/social 16 15 1.200 50 306
connection
Source: Additional Project Funding, page 33

11. The contribution of PEAMU to the reduction of water hauling. Another key benefit generated by the project is the
time savings resulting from the provision of drinking water, more specifically, these benefits express the opportunity cost
resulting from the time saved by beneficiaries as a result of the provision of drinking water in the vicinity of the household.
The survey report conducted by the ANSD in April 2018, on the baseline situation of water, sanitation and hygiene
indicates on page 21, table 3.1 that in urban areas 2.5% of individuals reported spending more than 30 minutes (threshold
of water fetching) as the time to collect the household water needs estimated at 135 liters per day. With the project, the
waiting time is almost zero to collect the household's water needs, estimated at 450 liters per day. The time saved is
valued at the cost of the hourly minimum wage (334 FCFA/h).
12. Economic efficiency of the PEAMU water component. Table 6 presents the results of the ex-post analysis compared
to the results obtained ex-ante in the PAD and the AF. The results are presented by sub-component and the net present
value (NPV) analysis is performed with two discount rates, 10% and 6%. The water component has a positive overall
economic impact with an IRR of 12.0% and a NPV (6%) of $33.77 million. These results are still below the forecasts made
in the PAD and the AF, but the project's performance remains very relevant. A closer look at the results by sub-component
reveals differences with the PAD and AF forecasts due to the fact that the social connections benefited from the
contribution of the avoided cost in time (ACT), Nguekhokh benefited from a reduction in its investment cost and that the
structural investments made in the "Tassette/Petite Côte" sub-component are still costly (see § 9).

Table 6: Results by Subcomponent

Subcomponent Tassette/Petite Nguekhokh Social Overall Project
Côte Connections
Program
PAD analysis
EIRR (%) 10.8 15.2 36.2 14.4
NPV at 10% (US$, 2.2 1.3 11.0 14.6
millions)
NPV at 6% (US$, 19.3 3.6 19.7 42.7
millions)
AF analysis
EIRR (%) 13.8 14.1 31.3 15.2
NPV at 10% (US$, 12.2 1.0 6.3 19.1
millions)
NPV at 6% (US$, 41.5 3.0 11.7 55.8
millions)
Expost Analysis
EIRR (%) 7.3 21.1 52.2 12.7

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NPV at 10% (US$, -7.17 1.9 13.8 8.47

millions)
NPV at 6% (US$, 5.6 4.1 24.1 33.77
millions)

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Sanitation

13. The operational performance of the sanitation component has increased the project's impact both on the target
groups and on ONAS' fixed capital. At the end of the project, the number of beneficiaries of an improved sanitation system
was 83,694 (as of June 30, 2021) out of a forecast of 80,000, i.e., a 105% target achievement rate. In addition, the project's
cost control has made it possible to release resources for additional investments (electromechanical equipment for the
Ouest Foire station and rehabilitation of the Grand-Yoff pumping station) at a cost of nearly CFA 399 million, i.e., US$ 8.2
per project beneficiary, which reduces the initial unit costs of the PAD (e.g., US$ 159 per beneficiary for social connections)
and consequently improves the efficiency of the sanitation options selected by the project.
14. Economic benefits of the sanitation component. (i) One of the economic benefits of the sanitation component was
identified in the PAD and relates primarily to the net savings in costs of emptying septic tanks by beneficiary households.
The calculation of this benefit is illustrated in Table 7, which compares the annual cost of adequate wastewater disposal
for an average group of 13 people in urban areas in the with/without project situation. The net saving in emptying costs
is obtained by deducting from the gross emptying costs, the sanitation tax surcharge related to water consumption. (ii)
Another significant benefit of the sanitation component to be taken into account is the savings in health expenditures
made by the State and households in the situation with the project, in accordance with the methodology of the PAD which
provides the results per group of 13 people. In fact, the desk study carried out by the World Bank Water and Sanitation
Program (WSP) in 2013 indicates that Senegal loses 158 billion FCFA each year due to poor sanitation, which is equivalent
to US$ 313 million. This is equivalent to US$23 per capita per year, or 2.1% of the national GDP. To reflect this reality, a
rough estimate of the health expenditure savings for the beneficiary households (80,000 people) was made for the specific
case of diarrheal diseases, which are mainly related to drinking water, sanitation and hygiene. The results indicate that
each person can save about US$ 7.54 per year in health expenses. In total, the sanitation component could generate a
cost savings of between US$13 and US$16 per person, depending on whether the connection is to a sewerage or an onsite
facility.
Table 1 : Annual Cost Savings in Joal Fadiouth (US$ per compound)
Without With project
Costs and Saving Unit
project Sewered On-site
Emptying costs
Frequency No. Per Year 4 0 1
Unit cost CFAF 17 000 17 000 17 000
Annual cost per compound CFAF 68 000 0 17 000
Sanitation surcharge
Annual consumption m3 237 237
Unit surcharge CFAF 0 34 34
Annual surcharge per compound CFAF 0 8 007 8 007
Healf Expenditure Saving
Unit expenditure FCFA 4 375 0 0
Annual Expenditure par compound 56 879 0 0
Annual savings
Per compound CFAF 116 871 99 871
Per compound USD 202 172
Per capita USD per capita 16 13

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B. Financial Analysis

Financial impact of the project

15. The financial impact of the project is assessed through its water supply component (analyzed at current price). It
results from the cash flow analysis obtained from the economic analysis, where all benefits that do not directly influence
SONES and ONAS revenues are deducted (consumer surplus, savings in health care costs). SONES' revenues were then
valuated by including all taxes and finally the total investment was taken into account. The financial IRR is presented in
the table below in comparison with the values obtained in the PAD and the FA.
Table 8: Financial IRR of the project
Indicator PAD AF Evaluation Ex-post
F-IRR (%) 8.3 11.4 10.3

SONES Financial Sustainability

16. The operator of the water supply component is showing satisfactory results after the implementation of the
PEAMU. Indeed, SONES has significantly improved its debt service coverage ratio from 1.14 in 2018 to 1.23 in 2019 and
1.86 in 2020, which is well above the target value of 1.1 set in the PAD. As for the debt ratio, it went from 0.2 in 2018, to
0.19 in 2019 and 0.10 in 2020 for a target value (≤ 2). This good financial performance puts SONES in a position to finance
all capital expenditures below CFAF 15 billion with its own funds.
17. The financial statements for the year ended 21/12/2020 show: (i) a net profit of CFAF 4,311,377,889 compared to
CFAF 3,946,964,843 in 2019, i.e., an increase of +9%. This increase is driven by an increase in the water fee paid to SONES
(which stood at CFAF 28,114,546,870 in 2020 compared with CFAF 22,961,662,244 in 2019, as well as miscellaneous
income (Mékhé energy rebate). The water fee increased by 5.150 billion F CFA or +22% compared to 2019, (ii) a cash flow
of 42.589 billion F CFA against 34.348 billion in 2019 or an increase of 8.241 billion (+24%) compared to 2019. SONES' own
cash position as at 31/12/2020 was CFAF 21.975 billion (52% of total cash) compared with CFAF 9.650 billion in 2019 (28%
of total cash). It is up by 12.325 billion CFA francs, or 128% in relative terms, which is mainly due to the recovery in 2020
of arrears from the State and the Mékhé rebate. The main financial indicators of SONES are as follows:

Table 2: SONES' main financial indicators

HEADINGS 31/12/2020 31/12/2019 Evolution
REVENUES 28 261 641 433 23 091 118 594 22%
ADDED VALUE 25 713 851 070 22 135 957 246 16%
GROSS OPERATING INCOME 22 925 723 047 19 608 223 104 17%
OPERATING INCOME 12 302 705 754 9 050 821 644 36%
FINANCIAL RESULT 565 323 267 - 425 891 084 -233%
INCOME FROM ORDINARY ACTIVITIES 12 868 029 020 8 624 930 561 49%
NON-OPERATING INCOME - 4 748 948 948 - 2 786 703 717 70%
PROFIT BEFORE TAX 8 119 080 073 5 838 226 844 39%
CORPORATE INCOME TAX 3 807 702 183 1 989 273 000 91%
NET INCOME 4 311 377 890 3 946 964 843 9%

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18. As a reminder, the 2015 pricing set the price of water including tax between 202 CFA/m3 and 878.3 CFA/m3 for
households with private connections and at a price of 2558.58 FCFA/m3 for the administration. For the latter, these
outstanding amounts amounted to 3.3 billion FCFA in 2020 and 2.7 billion FCFA in the 3rd bimonthly of 2021, it clearly
appears that the administration's unpaid bills weigh on its financial results, indeed in 2020, the administration's unpaid
bills reached 11.7% of its figure of business and 40.7% of its profit before tax.

Financial sustainability of ONAS

19. As far as ONAS is concerned, the ratio of coverage of cashable wastewater operating expenses by the fee rose from
84% in 2019 to 96% in 2020, which exceeds the target value of 90% set under the project, thanks in particular to the tariff
adjustment decree issued on August 11, 2020, which made it possible to increase the sanitation fee by about CFAF 3.34
billion, resulting in a net surplus result of 98.9 million compared to a negative result of 84.3 million in 2019.
Table 10: ONAS results for 2019 and 2020
INDICATOR NAME 2019 2020
TOTAL OPERATING REVENUES 20 018 646 672 21 247 429 052
1 - Fees and revenues on connections 8 970 407 259 12 687 892 825
3 - Operating subsidy 308 701 849 350 257 542
4 - Other products 10 739 537 564 8209020521
TOTAL OPERATING EXPENSES 20 102 976 707 21 148 466 229
Net income for the year -84 330 035 98 962 823

20. Despite this result in 2020, the collection rate of the fee remains low at 66%. This low coverage rate is explained by
the non-recovery of all sums from invoicing, mainly due to delays in payment by the Administration. Supplier debts
amount to more than 3 billion as of 31/12/2020. The mobilization of resources to close the gap and re-establish the cash
flow balance is becoming an emergency for ONAS.
Financial sustainability of the WASH sector

21. To maintain the level of performance on the financial viability of the sector, it is imperative that the State be diligent
in paying the balances of the various cross-debt agreements in favor of SONES and ONAS. It is therefore recommended
that (i) the balance of the sixth cross-debt agreement covering the period from January 1, 2015 to September 30, 2017
be paid. The balance in favor of ONAS from the said agreement is set at 2,687,218,510 CFA francs (ii) to proceed with the
payment of the balances of the 7th cross-debt agreement covering the period from January 1, 2017 to December 31, 2018
with SONES on the one hand for an amount of 12.9 billion CFA francs and with ONAS on the other hand for an amount of
2.9 billion CFA francs and (iii) to ensure the payment on time of the invoices of the administration for the coming years.
22. Affermage contract: The first-generation reform for the management of the public drinking water service in urban
areas was generally a resounding success with major investments which made it possible to increase water production,
which rose from 92 million m3 in 1996 to more than 190 million m3 in 2019. Similar performance was also recorded in
the distribution and development of access to services with a current rate of more than 98% across the leased scope, not
counting the performance recorded in maintaining the quality of water supplied to subscribers. The second-generation
reform marks a qualitative change in the contractual framework with a strengthening of the concessionary model of
affermage, which translates into an increase in the volumes of investment at the expense of the tenant who will

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henceforth contribute to the strengthening of the speed in the operations, but also and above all to improve the quality
of the assets. The affermage contract for the public water service has made it possible to lower the operator price of
water, which will drop from 364.7 FCFA, currently, to 298.5 FCFA, i.e. a gain of more than 66 FCFA per m3 and more than
200 billion FCFA over the duration of the contract. This saving will thus allow the State to review in depth the structure of
financing of services by raising the fee dedicated to urban sanitation to strengthen the financial balance of ONAS, to
consolidate the price of SONES assets in order to better secure its financial equilibrium, to reduce the very heavy weight
of the tariff of the Central Administration and to generate resources to finance the monitoring of strategic water
resources.

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ANNEX 5. EVOLUTION OF FINANCIAL INDICATORS

Indicator Aug- May- Nov- Apr- Sep- Apr- Oct- Sep- Mar- Sep- Mar- Dec-
15 16 16 17 17 18 18 19 20 20 21 21
Debt service 1.40 1.58 1.58 1.92 1.92 1.14 1.14 1.23 1.86 1.86 1.46 1.46
coverage ratio >1.1
Financial equilibrium Y Y Y Y Y Y Y Y Y Y Y Y
of the urban water
supply sub-sector
Coverage of cash 69% 69% 85% 85.4% 83% 83% 90% 84.7% 77.6% 77.6% 96% 96%
operating
expenditures of
sewerage activities of
ONAS

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ANNEX 6. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS

The report is very complete and quite dense, especially in the economic and financial analysis. We
suggest completing the report with the following comments:

Financial equilibrium of the sector over the period 2003-2007

The financial equilibrium of the urban water sub-sector was achieved in 2003. It was maintained in 2004
and 2005 without any increase in the average water tariff, thanks to the increase in the volume of water
sold, the stability of costs during this period, and productivity gains by SONES and SDE. On the other
hand, the increase in the price of certain inputs such as electricity and chemicals necessitated an increase
in the average water tariff starting in 2006. The government, considering that a general increase in water
tariffs was not politically and socially acceptable in a difficult economic context, decided to cover cost
inflation only through an increase in the Administration's tariff, leaving other tariffs unchanged. The
financial equilibrium of the sub-sector was maintained in 2006 and 2007 thanks to the State's
contribution in the form of a substantial increase in the Administration tariff, which was raised by 31%
in 2006 and 31% in 2007, while the other tariffs remained unchanged.

Impacts of institutional strengthening

The support to the DGPRE also allowed confirmation of the potential for mobilizing water resources in
the Bayakh and Diender catchment areas on the outskirts of Dakar. These resources subsequently
enabled SONES to carry out technical studies and to finance, with its own funds, the construction of 11
additional boreholes, which increased the volume of water that could be mobilized for Dakar to improve
the rate of coverage of peak needs.

Key factors during preparation

The Government, in agreement with the World Bank, allowed the implementation structures and the
Coordination Unit to use the residual funds from the previous project (PEPAM-IDA) to finance a large
part of the technical, environmental, and social studies that made it possible to have tender documents
available very early on and thus to maximize the credit commitment rate in the first year of
implementation.

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ANNEX 7. SUPPORTING DOCUMENTS (IF ANY)

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