Car project for Drinking Water Supply and Sanitation in Three Divisional Headquarters and Surrounding Rural Areas Appraisal Report

 

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2.3 Project 
Type 
This operation is designed as a Grant for an investment project. It is premature to 
adopt the sector-wide budgetary support approach (SWAp) at this juncture, considering the 
relatively weak institutional organization of the sector at the central and local levels, as well 
as the weak public expenditure internal control. As things stand, the project grant is the most 
suitable instrument, given that part of the resources will be used to support the main sector 
actors, namely DGH, SODECA, Berberati, Bouar and Bossangoa Councils, as well as the 
Department of Community Health and the Regional Directorates of Social Affairs. 
Furthermore, the support activities envisaged under the project will complement the 
institutional support that the African Water Facility plans to provide to the ongoing DWSS 
sector reform and strengthen the capacity of structures in charge of the sector at the central 
and decentralized levels. 
 
2.4 
Project Cost and Financing Arrangements 
Overall project cost will amount to UA 10.354 million, net of taxes, of which UA 
8.514 million (82.23%) in foreign exchange and UA 1.840 million (17.77%) in local 
currency. The cost includes a 7% provision for physical contingencies and a 3% annual 
provision for price escalation. The ADF will contribute UA 7 million to project financing 
(67.61% of the total cost) in the form of a grant. The Rural Water Supply and Sanitation 
Initiative (RWSSI) Trust Fund will provide UA 3 million (28.97% of the cost), while the 
beneficiaries will contribute the equivalent of UA 0.257 million (2.48%) in kind (sand and 
gravel for the construction of latrines) and labour for the development of landfills. The 
Government will be responsible for paying compensation for loss suffered following the 
expropriation of property, assessed at UA 0.097 million (0.94% of the project cost).