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Project Feasibility Study in Egypt

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					                                             TERMS OF REFERENCE

                                               FEASIBILITY STUDY

                            “BANIAS WATER AND WASTEWATER PROJECT”


1. BACKGROUND

The United Nations Environment Programme (UNEP) has identified in its 2003 report (Strategic Action
Programme: Hot spots in the Mediterranean) a number of major raw water discharges into the
Mediterranean Sea. In 2008, the EIB published under the EU Horizon 2020 initiative, a study, which,
based on the above findings, investigated the present state of development of depollution activities in
order to derive a possible investment programme to be implemented in the near future. The Banias
Wastewater Project was identified as one of these hot spots in Syria, for which some design activities
had been realised during 2003-2005.
                        1
An investment report “Feasibility Report for Banias Domestic wastewater System” was prepared
by Chemonics Egypt in association with Chemonics Syria and Wilbur Smith Associates. The report
develops a wastewater collection and treatment project (horizon 2025) for a regional wastewater
project covering the City of Banias as well as 7 villages (Barmaya, Bostan, Elnagar, Zello, Tero,
Alkeen, Elmarqab, Elmanzalah). The investment cost was estimated to be of about 22.3 m US$ (2005
prices) comprising investments into the collection system and in wastewater treatment (oxidation ditch
technology) and a sea outfall.

The “Study on sewerage System development in the Syrian Arab Republic” (Ministry of Housing
and Construction, JICA, 2006, p.9-63) assessed the need of wastewater development in Syria and
predicted a population increase from about 50 000 inhabitants to 82 500 inhabitations in 2025. This
report confirms the choice of oxidation ditches as the preferable technology for wastewater treatment
in Banias.

An EIB mission visited the project area in late 2008 and discussed a possible EIB financing proposal
with the Syrian Government and project stakeholders. Following the general EIB approach to water
sector projects, it was proposed to extend the project scope also to water supply improvements in
order to allow for a coherent approach to water and wastewater service performance developments in
Banias. The Bank proposed to make FEMIP Technical Assistant funds of up to EUR 200 000 available
to update findings of previous studies and to add the identification of drinking water investments. The
study (the current TA operation) should identify a clear number of investments for which the Ministry of
Housing and Construction would engage further consulting services to prepare final designs and
tender documents. It is expected that the Bank will appraise a new investment proposal during the
implementation of the TA operation.

The aim of this TA operation is to review the existing wastewater study and complement it with a
review of the present water supply situation in order to prepare a coherent water sector project
covering all areas from drinking water resource development to final treated wastewater product reuse
– disposal; and this in form of a feasibility study

The feasibility study is intended to identify the investment needs until 2040 and a first phase of
construction from 2011-2013. Special attention should be paid to the institutional background of the
present water supply and wastewater operation as well as the available capacity to operate a modern
wastewater system. The development of a design-build-operate (DBO) concept for the implementation
of the wastewater treatment plant might be an appropriate approach and has already been discussed.

The scope of the present consultancy service is to propose (i) the technical project, the environmental
impacts, the options for treated water reuse and its mid- and long term investment and operation cost,
(ii) its financial viability and the impact on the present and future financial standing of the service
provider, (iii) the present, medium- and long term set-up of the relevant administrations to provide
water and wastewater services, (iv) the necessary level of tariffs to appropriately cover operation and
capital cost of water and wastewater services, (v) the possible need for technical assistance to support
the promoter during further project implementation.

1
        The report is available will be made available on CD ROM including all hydraulic calculations and drawings (autocad).
The Bank is currently implementing the Damascus Rural Water and Sanitation Project, the scope of
which is similar to the proposed project in Banias. The Consultant will be required to consult the
Project Management Unit and the Institutional Development Unit of the ongoing project to seek advise,
take stock of lessons learned and to harmonise proposals and approaches, as and when appropriate.

The expected outcome of this TA assignment is to propose a clearly defined integrated water and
wastewater investment project for Banias, which would be discussed with the Ministry of Housing and
Construction, Tartous Water Company (the water and wastewater service provider) and Banias
Municipality during an EIB project appraisal mission, to be held during the implementation period of
the current assignment. The purpose of the appraisal is (i) to jointly define the first phase of
implementation, (ii) to allow to the Bank to prepare a co-financing proposal to the Syrian government
and (iii) to allow the consultant to finalise its report based on agreed parameters, (iv) to allow the
government to proceed with further project preparation for a first phase of construction 2011 - 2013
(final designs and tender documents).

This is a lump sum contract for consultancy services. A sum of EUR 20 000 should be set aside
in the financial offer as reimbursable expenditure (water analysis, aerial maps, translations, etc).



2. DESCRIPTION OF THE ASSIGNMENT

2.1       Beneficiary

          Ministry of Housing and Construction
          PO Box 60131
          Damascus
          Arab Republic of Syria

          Contact Person:           Dr. Kamal Al Sheika, Vice Minister
          Telephone:                00963 11 2323810

For the success of this assignment, it is important that the consultant closely involves the Ministry of
Housing and Construction, the project municipalities and the Tartous Water Company in the study
process and that recommendations are made in consultation with the relevant national and local
stakeholders. In parallel, the Consultant shall maintain contact with the European Investment Bank to
ensure that the project will meet the EIB criteria for financing such operations.
The Ministry of Housing and Construction will assign a contact person who will accompany the
consultant during the time of his assignment and will support in collecting relevant project information
and facilitate official contacts with national and local stakeholders.

2.2       Global and specific objectives

The final goals of the project are:
.
    Protection of the Mediterranean Sea.
    Improvement of water and wastewater services in Banias.

In order to achieve these final goals, the specific objectives of this TA assignment are:

          To prepare a feasibility report and investment programme 2011 – 2013 for the Promoter,
           which will allow financing discussions and decision-taking by the European Investment Bank
           and the Syrian Government
          To identify, in the feasibility report, a first phase of investment for water, wastewater and
           stormwater infrastructure to be implemented during 2011 - 2013.
2.3       Requested services

The requested services cover the following tasks:

      
                                                     2
           Critically assess the current sector situations in Banias and the project area,
          Critically justify and update the wastewater and stormwater design criteria and findings of the
           Chemonics report (and others) for project horizons of 2025 and 2040,
          Identify present water supply sector deficiencies, and propose possible ways to minimize or
           eliminate such deficiencies,
          Identify and justify a technically, economically/financially and environmentally/socially viable
           investment programme outlined for mid- and long-term needs,
          Propose a concept to improve the management of water and wastewater services, as
           appropriate, including organisation of services, human resource development, identification of
           technical equipment, etc…
          Prepare regular stakeholder meetings (min 3) to discuss project design decisions and assist
           EIB during project appraisal,
          Propose a concept to cover operation and maintenance cost and to create an appropriate cost
                                3
           monitoring system to generate reliable operation and maintenance cost data,
          Prepare a feasibility report on the project as a basis for an EIB project appraisal,
          Propose, discuss and agree with MHC a concept of works and services procurement (DBO,
           BOT, Fidic red book…), project implementation and management, and prepare outline Terms
           of References for the design and tender preparation phase.


Activities related to town planning

    No      Activity

    TP1     Critically assess and discuss the presently envisaged long-term town development
            planning.

    TP2     Identify present coverage (2009) and future town development scenarios for horizons 2025
            and 2040 as a basis for infrastructure planning.


Activities related to the Water Supply Sector

    No      Activity

    WS1     Assessment of the present and future (2025 and 2040) water demand for domestic, tourist,
            commercial and industrial uses and development of a water balance enumerating
            production, water losses, supplied, billed and paid volumes.

    WS2     Implementation of an outline survey of existing water supply assets, including assessment
            of technical state and value, rehabilitation, repair, up-grade and replacement needs.

    WS3     Development of an investment programme to rehabilitate, to up-grade and extend the water
            supply infrastructure (horizons 2025 and 2040), water resource development, storage
            capacities, distribution networks and zoning, including hydraulic modelling of primary
            network. Clearly identification of first phase of investments (horizon 2025) including design
            parameters to be implemented during 2011 – 2013.

    WS4     Assessment of the organisation and institutional environment of the water service provider
                                                                                                3
            and provision (outline) of proposals on how to improve water service performance (see
            footnote 3).




2
           Water, wastewater and stormwater
3
           The consultant will have to coordinate his proposals with the ongoing EIB project “Damascus Rural Water and
           Sanitation Project”, Institutional Development.
    WS5    Assessment of the economic and financial feasibility of the proposed project, which implies:
           (i) identification and quantification of project benefits, namely the improved availability of
           water supply service; (ii) calculation of the project’s Economic Rate of Return (ERR); (iii)
           identification and quantification of the project (i.e. incremental) financial flows; and (iv)
           calculation of the project’s and the promoter’s Financial Rate of Return (FRR).

    WS6    Discussion, proposal of possible strategies and final choice of works (DB, Fific red book…)
                                                                                                    4
           and services procurement and project implementation including a tentative time planning .

    WS7    Implementation of a scoping process in line with Syrian and EU environmental law
                       5
           requirements , identification of mitigation measures and of ToR for further EIA studies to be
           implemented under the final design phase, as appropriate.


Activities related to the Wastewater Sector

    No     Activity

    S1     Assessment of present and future (2025 and 2040) wastewater production (flows and
           pollution loads) from domestic, tourist, commercial and industrial sources based on
           representative measurements and verification with design proposal of the Chemonics
           Report.

    S2     Confirmation of “Chemonics Report” survey results of existing wastewater collection
           infrastructure, assessment of technical state, rehabilitation, repair and replacement needs,
           including stormwater systems.

    S3     Assessment of area coverage (2025 and 2040), rate of centralised piped collection and
           existing individual systems, outline development of future scenarios of development of
           central and individual system coverage, if advisable.

    S4     Confirmation of the “Chemonics Report” proposed wastewater collection network upgrading
           and extension programme (2025), development of additional needs to cover the 2040
           project horizon, including up-date of cost estimate and hydraulic re-modelling of main
           system (if necessary).

    S5     Confirmation of the “Chemonics Report” proposed wastewater treatment concept
           (discharge quality) and review, as appropriate, including extension to planning horizon
                                                                 6
           2040, (presentation of design layout and calculations in an appropriate format as to be
           used for a DBO tender dossier) and review of the available discharge options including sea
           outfall.

    S6     Discussion and proposal of appropriate options to further use treated wastewater products
           (effluent and sludge), development of an effluent and sludge management concept, (e.g.
           reuse for irrigation in green houses) including layout design, economic/financial evaluation
           and necessary administrational arrangements.

    S7     Confirmation of “Chemonics Report” proposed institutional set-up of wastewater service
           provider and development of proposals to improve institutional capacity and wastewater
                              3
           service performance (see footnote 3).




4
          The consultant will have to coordinate his proposals with the ongoing EIB project “Damascus Rural Water and
          Sanitation Project”, Project Management Component.
5
          http://ec.europa.eu/environment/eia/eia-guidelines/g-scoping-full-text.pdf , the use the formats proposed in this
          guideline is advised
6
          The verification of the WWTP design has to be done with the help of the design software and the reference guideline
          (ATV, Metcalf & Eddie) in use by the Ministry of Housing and Construction design office. The consultant will have to
          closely liaise with the MHC design office.
    S8      Assessment of the economic and financial feasibility of the proposed project, which implies:
            (i) identification and quantification of project benefits, namely the positive externalities from
                                                     7
            wastewater collection and treatment ; (ii) calculation of the project’s Economic Rate of
            Return (ERR); (iii) identification and quantification of the project (i.e. incremental) financial
            flows; and (iv) calculation of the project’s and the promoter’s Financial Rate of Return
            (FRR).

    S9      Discussion, proposal of possible strategies and final choice of works (DBO, BOT, Fidic red
            book…) and services procurement and project implementation including a tentative time
            planning.

    S10     Implementation of a scoping process in line with Syrian and EU environmental law
                        5
            requirements , identification of mitigation measures and of ToR for further EIA studies to be
            implemented under the final design phase, as appropriate.


Activities related to stormwater evacuation

    No        Activity

    SW 1      Confirmation of “Chemonics Report” assessment of present problems arising
              during storm events.

    SW 2      Confirmation of “Chemonics Report” proposed design criteria for stormwater
              canalisation planning.

    SW 3      Confirmation of “Chemonics Report” proposed investment programme,
              extension of the programme to horizon 2040 (as appropriate) including
                                    8
              hydraulic calculations .

    SW 4      Identification of construction programme to be implemented during 2011 –
              2013, assessment of cost of programme and identification of mechanism of
              cost recovery.

    SW 5      Assessment of institutional set-up of stormwater service provider and
              development of proposals to improve institutional capacity and stormwater
              service performance.

    SW 6      Implementation of a scoping process in line with Syrian and EU
                                              5
              environmental law requirements , identification of mitigation measures and of
              ToR for further EIA studies to be implemented under the final design phase ,
              as appropriate.

Activities related to financial sustainability of the services

    No      Activity

    FIN1    Preparation of financial projections (income statement, balance sheet and cash-flow) for the
            service provider to ensure long-term sustainability in the provision of the water, wastewater
            and stormwater services.




7
           This will normally require an assessment of Willingness to Pay, typically through contingent valuation methods. In
           order to avoid lengthy and costly surveys, values from comparable projects (i.e. similar projects in other locations with
           similar socio-economic profile) to be provided by the consultant will be accepted as a proxy. Reference is made to the
           EIB FEMIP/GtZ financed “Tariff Study for Syrian Water Sector”, MHC, (Hydratec, May 2006)
8
           Chemonics Egypt has used the Hystem-Extran software package developed by itwh, Hannover, Germany, to design
           the stormwater canalisation, http://www.itwh.de/S_extinfo.htm
                                                                                                             7
 FIN2      Calculation of the necessary tariff levels that, within the affordability limits of the population ,
           will ensure the recovery of operation and maintenance cost and the generation of sufficient
           resources to provide for the project’s counterpart funds and to meet debt service
           obligations. Should a financing gap exist, clearly identify and mark the necessary level of
           government subsidies.


Activities related to further project development

 No       Activity

 TA1      Preparation of a set of outline terms of references for technical assistance
          operations to support the Syrian government during further project
          implementation, e.g. to engage consulting services to produce final designs
          and tender documents for the finally agreed investment programme 2011 -
          2013 and others (according to the chosen strategy of procurement, DBO, BOT,
          DB, Fidic red book…), as appropriate.


2.4       Expected results

It is expected that the Consultant will submit a feasibility report identifying a technically sound, socially
balanced and economically/financially robust proposal to develop water, wastewater and stormwater
infrastructure in Banias. The investment programme, which covers the mid-term design horizon 2025,
will be the subject of a possible loan from the European Investment Bank to the Syrian Government of
which the implementation is foreseen between 2011 and 2013.


3. EXPERTS PROFILE

3.1       Education, experience, references and category of each expert

The preparation of the documents mentioned will require the expertise of different professionals, such
as:

         water supply and treatment engineering,
         hydraulic network modelling,
         waste water process and sewerage/stormwater engineering,
         treated wastewater product reuse (water and sludge),
         agriculture engineering,
         economic and financial analysis,
         tariff regulation,
         water utility operations,
         water utility financial management,
         environmental and social impact assessment,
         public procurement.

The Consultant has to propose the composition of the team of experienced engineers, economists and
specialists. All experts must have several years prior work experience in similar countries and must be
able to work in the English language. The experts should be either category I or II. Cooperation with
locally experienced consultants would be welcomed. A backstopping person (CV to be attached)
should be nominated in the Consultant’s head office.

A team leader should be proposed who has experience in carrying out similar studies, preferably in the
region, with minimum 15 years experience including experience in managing a team. The team leader
should ideally be either an economist or engineer.

The estimated number of manmonths to be allocated to the assignment is 15. The team leader should
be allocated at least much time as other experts under the contract.
3.2     Working language

The working language is English.


4. LOCATION AND DURATION

4.1     Starting date

The starting date is:                                     June, 2009

The Consultant shall jointly organise a stakeholder meeting (briefing) with the Ministry of Housing
and Construction, Tartous Water Company and Banias Municipality, at start of services, and hold such
meetings regularly to inform about progress of the assignment. A stakeholder project design meeting
to approve the first investment phase expected to be financed by the Bank shall be held in mid
August 2009.

4.2     Finishing date of the assignment

The Consultant shall jointly organise a stakeholder de-briefing meeting with the Ministry of Housing
and Construction, Tartous Water Company and Banias Municipality by mid October 2009 to discuss
the draft final version of the feasibility report.

The draft final report shall be presented by:             November 15, 2009

The finishing date of the assignment is:                  January 31, 2010

4.3     Schedule and number of days for the assignment, per expert

The Consultant should propose the time allocation for each expert intended to be engaged and,
include in the submission of the offer, a short methodology (organisation of works, max. 6 pages) and
a provisional time planning, indicating (a) the scope of work, the expert involved and the time
requirements per task and (b) the time requirements (days) per expert.

4.4     Location of assignment

The Consultant should mainly work in Banias and within the project area. Meetings will also be
necessary in Damascus. An appropriate time allowance can be foreseen for reporting, hydraulic
modelling, map preparation etc. in the Consultant’s offices.

4.5     Office space and equipment

The Consultant should provide their own office space and all necessary equipment, materials etc to
perform the study.


5. REPORTING

The Consultant will, within 2 weeks of the start of the assignment, submit a brief Inception Report
(max. 10 pages, formats A3 – A4), which highlights the main findings, key issues, preliminary
conclusions and possible amendments to the project approach and presents a provisional project
concept.
A project concept report (max 30 pages plus attachments, in English and Arabic) should be
submitted to MHC, EIB Tartous Water Company and Banias Municipality 2 weeks before (i.e.
beginning August 2009) the stakeholder project design meeting due to take place in mid August
2009 to discuss the first investment phase. The consultant will explain this proposal of a first phase of
investment using a PowerPoint presentation (in English and Arabic) during the project design meeting.
The Consultant should also draft minutes of the meeting.

The Consultant should submit a Draft Final Report (max. 60 pages plus annexes, formats A3 – A4).
The report shall be finalised to such an extent that if there are no comments from any of the interested
parties, the report could be considered final. The report should be submitted two weeks before the de-
briefing workshop (PowerPoint presentation in English and Arabic, date to be confirmed) to allow
project stakeholders to comment on the report. Within two weeks after the de-briefing workshop, the
Consultant will receive comments and should submit the Final Report by December 15.

Reports should be submitted as follows:
    o   Ministry of Housing and Construction, Tartous Water Company and Banias Municipality (1
        copy in English, 2 copies in Arabic),
    o   the European Investment Bank (3 copies in English), to the attention of Mr Stefan Kerpen,
        Head of Technical Assistance Unit, Ops-B/DEAS/Technical Assistance Unit
    o   any other body (project stakeholder, 1 copy in Arabic), as identified and appropriate.

Furthermore, reports shall be distributed in electronic versions (.pdf), the final report (pdf and MS
Word), its supporting documents, maps (.dwg) and the financial model (MS Excel) shall be made
available on CD-ROM to all parties, once the services are completed.


6. VISIBILITY REQUIREMENTS

The technical assistance operation is financed under the Support Fund of the Facility for Euro-
Mediterranean Investment and Partnership (FEMIP). To ensure the visibility of the FEMIP Support
Fund, the EIB logo, EU flag and Euromed logo should appear on the cover page of reports produced
under the TA contract. THE EIB LOGO MAY NOT BE USED FOR ANY OTHER PURPOSE.
The following text should also be included in the reports: “The technical assistance operation is
financed under the FEMIP Support Fund. This Fund utilises non-repayable aid granted by the
European Commission in support of EIB investment activities in the eastern and southern
Mediterranean countries, assisting promoters during different stages of the project cycle .”
The following disclaimer should also be included: “The authors take full responsibility for the contents
of this report. The opinions expressed do not necessarily reflect the view of the European Union or the
European Investment Bank”.




References:

       Syrian Arab Republic, Ministry of Housing and Construction,
        o    “Pre-investment Study for Banias Wastewater Project and Rehabilitation of Banias
             Refinery Industrial Wastewater treatment Plant
                    Chemonics Egypt et al:, Draft feasibility report for Banias Domestic Wastewater
                     System, May 2005, Syr-BPS- 6-03 D (E)
                    Chemonics Egypt et al:, Wastewater Management Plan for Banias Areas, May
                     2005, Syr-BPS- 6-01(E)
        o    NJS Consultants Co Ltd et al: Study on Sewerage System Development in the Syrian
             Arab Republic, JICA, 2006
                                                                                                 Attachment 1

                            PROPOSAL OF OUTLINE OF FEASIBILITY REPORT

Executive summary

Project area
     Project area (location, area covered by project);
     Population (permanent, seasonal, growth & demographic trends);
     Town planning and spatial development;
     Economic activity and development plans.

Present situation (drinking water and wastewater, stromwater services)
     Overview of existing services and problems;
     Water resources (quality & quantity);
     Existing infrastructure (production, distribution, collection & treatment);
     Service standards & trends for last 5 years (indicators: coverage, connections, metering, reliability,
        production, consumption, leakage, collection, treatment);
     Present operations (organisation, staffing, costs);
     Asset ownership and maintenance;
     Present investment activities.

Future situation (drinking water and wastewater, stromwater services)
     Demand forecasts (drinking water and wastewater, with assumptions on population growth and income
        evolution, capacity and willingness to pay of domestic users, tariffs, and demand elasticity of all user
        categories);
     Future service levels (connection rates, treatment standards);
     Project components and justification (improvement of performance, integration of regional approaches,
        environmental impacts);
     Analysis of alternative technical solutions (technology, cost-effectiveness, phasing considered);
     Proposed technical solution (components, costs, phasing);
     Additional surveys and investigations required.

Environmental Scoping Report
     Legislation & permits (present stage of approvals);
     Baseline conditions;
     Summary of Impacts (including sewage sludge disposal and treated water reuse);
     Mitigation measures (justification, types, cost, monitoring);
     Further steps.

Future organization of services
     Institutional analysis (responsibilities, organisational structure, resources);
     Proposals for future service delivery (asset ownership, operation and maintenance, financial
        management, commercialisation, outsourcing);
     Areas in need of capacity building and technical assistance.

Financial and Economic Analysis
     Existing financial status of service providers;
     Revenues & direct operating costs (water supply and wastewater services);
     Calculation of ERR and FRR of the water supply component, the stormwater component and of the
        wastewater collection and treatment component;
     Financial projections for service provider;
     Tariffs & affordability (current tariffs; future tariffs, affordability, necessary level of subsidies);

Procurement Strategy & Implementation
     Works and services contract packages and procurement strategy;
     Project Implementation Management;
     Implementation schedule.

Attachments
     Outlines of Terms of references, Analyses, Tables, Maps, Photos.
                                         CURRICULUM VITAE
Proposed role in the project:
Category:
1. Family name:

2. First names:

3. Date of birth:

4. Nationality:

5. Civil status:

6. Education:
 Institution                     Degree(s) or Diploma(s) obtained:
 [ Date from - Date to ]




7.   Language skills: Indicate competence on a scale of 1 to 5 (1 - excellent; 5 - basic)
Langue                        Read                Spoken                     Written




8. Membership of professional bodies:

9. Other skills: (e.g. Computer literacy, etc.)

10. Present position:

11. Years within the firm:

12. Key qualifications: (Relevant to the assignment)

13. Specific experience in the region:
                    Country                                      Date from - Date to
Syrian Aran Republic,
Banias Water and Wastewater Project



14. Professional experience
  Date from       Location            Company         Position   Description
  - Date to




15. Other relevant information (e.g., Publications)




                                                                               11

				
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