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Language : English

Original: English

MIC GRANT: LA GOGUE WATER SUPPLY STUDY

COUNTRY: SEYCHELLES

MIC REPORT

Date: August 2011

Appraisal Team

Prepared by : E. Alemseged, Water & Sanitation Engineer

Sector Manager: Monia Moumni, Officer-In-Charge, OWAS.2

Sector Director: Sering B. Jallow, Director, OWAS

Regional Director: Gabriel Negatu, Director, OREA

Peer Reviewers

P. Kariuki, Country Economist, UGFO

O. Chanda, Water and Sanitation Engineer, OWAS.2

F. Höllhuber, Water and Sanitation Specialist, AWF

N. Ogal, Water and Sanitation Engineer, OWAS.2

C. Mutasa, Financial Analyst, OWAS.2

R. Mwasambili, Water and Sanitation Engineer, OWAS.2

TABLE OF CONTENTS

I. INTRODUCTION .................................................................................................................. 1 1.1 Background Information .................................................................................................. 1 1.2 Objectives of the MIC Grant ............................................................................................ 2 1.3 Justification for the Use of Resources ............................................................................. 2

STUDY DESCRIPTION ........................................................................................................... 3 2.1 Study Components ........................................................................................................... 3 2.2 Expected Outputs ............................................................................................................. 4

3. STUDY COST ESTIMATES AND FINANCING PLAN ................................................... 4 3.1 Cost Estimates (foreign and local) ................................................................................... 4

3.2 Financing Plan ................................................................................................................. 5

4. PROCUREMENT ................................................................................................................. 5

5. IMPLEMENTATION ........................................................................................................... 6 6. FINANCING ARRANGEMENTS ....................................................................................... 7

6.1 Disbursements .................................................................................................................. 7 6.2 Suspension of Disbursements .......................................................................................... 7

6.3 Letter of Agreement ......................................................................................................... 7 7. CONCLUSIONS AND RECOMMENDATIONS ............................................................... 7

7.1 Conclusion ....................................................................................................................... 7 7.2 Recommendations ............................................................................................................ 8

Annexes

Annex 1. Detailed Study Cost Estimate

Annex 2 – Project Implementation Schedule

Annex 3 – Administrative Map of Seychelles

Annex 4 – Letter of Agreement

Annex 5– MIC Request from GOS

Annex 6 Terms of Reference (Abridged)

iii

Currency Equivalents

August 2011

UA 1.00 = Euro 1.12132

UA 1.00 = SCR 19.1911

Fiscal Year

1 Jan – 31 Dec

Weights and Measures

1metric tonne = 2204 pounds (lbs)

1 kilogramme (kg) = 2.200 lbs

1 metre (m) = 3.28 feet (ft)

1 millimetre (mm) = 0.03937 inch (“)

1 kilometre (km) = 0.62 mile

1 hectare (ha) = 2.471 acres

iv

Acronyms and Abbreviations

ADF African Development Fund

ADB African Development Bank

AMSL Above Mean Sea Level

AWF Africa Water Facility

BADEA Arab Bank for Economic Development in Africa

DI Ductile Iron

EIB European Investment Bank

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

FSL Full Supply Level

GOS Government of Seychelles

MIC Middle Income Countries

PUC Public Utility Corporation

QCBS Quality and Cost Based Selection

RAP Resettlement Action Plan

SCR Seychelles Rupees

WDP Water Development Plan

UA Unit of Account

UAE United Arab Emirates

UFW Unaccounted for Water

UNDB United Nations Development Business

UNDP United Nations Development Program

v

Grant Information

Client’s information

GRANT RECIPIENT: Government of Seychelles

EXECUTING AGENCY: Seychelles Public Utility Corporation

Financing plan

Source Amount

million (UA)

Instrument

ADB

0.600

MIC Grant

GOS 0.117 Government

Contribution

TOTAL COST 0.717

key financing information

MIC Grant Currency

UA

Timeframe - Main Milestones (expected)

MIC Grant Approval 07/12/2011

Effectiveness 06/01/2012

Last Disbursement 31/06/2013

Completion 31/03/2013

vi

Country and project name: Seychelles – LA Gogue Water Supply Study

Purpose of the project : To confirm the feasibility of the schemes and provide detail designs in readiness for Implementation

RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF

VERIFICATION

RISKS/MITIGATION

MEASURES Indicator (including CSI) Baseline Target

IMP

AC

T

Improved quality of life due to availability of adequate water supply and increased socio-economic benefits

1. Water demand satisfied

2. Improvements in quality of life

statistics related to water.

1.60% of water demand being met

as of 2010

1. 100% water demand met by 2030

2. Quality of life statistics comparable with those of

the most developed

countries by 2030

Utility performance report

National statistics reports

Continued government support and prioritization of water supply and

sanitation sector development.

OU

TC

OM

ES

Improved availability of adequate water supply for

consumptive and productive uses.

1. water production

2. Seasonal Availability

3. Geographic availability

27,000m3/day

no year round

supply in 40% of

the areas

production increased by 15%

Unrestricted supply all year

round

All areas get water unrestricted

Utility performance

report

National statistics

reports

Sustainability risk will be mitigated by adjusting

tariff and enhanced capacity of the PUC. (tariff

study in progress)

The risk of the project not being feasible is

minimal but Seychelles has unlimited sea water

The risk of Stalled implementation due to

funding limitations – this will be mitigated by

mobilising resources from the Bank and partners

OU

TP

UT

S

The project implementation is ready for increasing the

storage capacity of La Gogue dam and improvement of the

distribution system

Readiness for Implementation

No feasibility and

detail design and

project not ready

for

implementation

Feasibility and detail design

submitted and approved

Completion of consultancy

services within 8months of

contract award. (forecast March

2013)

Progress, disbursement

and financial reports

from the executing agencies

Bank supervision

mission reports Consultancy progress

reports

Consultancy

completion reports

Risk of poor quality of work will be mitigated by

detailed and clear TOR, emphasis on technical

proposal during selection, engaging panel of

experts for technical reviews

Key

act

ivit

ies

a. Undertake feasibility and detail design for raising la Gogue dam

b. Undertake feasibility and detail design and establishment of La Gogue distribution network

.

Risk of implementation delay will be mitigated by use of recruiting suitably

experienced consultant and close supervision by the PUC and oversight by

Government and Bank’s supervision

Costs (‘000 UA,)*

Source FE LC Total

MIC Fund 580 20 600

GOS 0 117 117

Total 580 137 717

* including contingencies

1

I. INTRODUCTION

1.1 Background Information

1.1.1 The Seychelles islands had an estimated population of 83,000 as of 2010 with 90% of them

living on the Mahe Island. The islands are currently experiencing water shortages with an average

of 60% of the current demand being met. The problem is more pronounced on the main island of

Mahe due to pressure from an increasing population and demand from the commercial and hotel

sectors. The water system suffers from high unaccounted for water (UFW) estimated at around

44% due to an ageing reticulation system which is complex due to the hilly topography of the

island. The water shortages being experienced will continue to worsen due to growth in

population, tourism activities and other commercial developments. The current demand of around

44,000m3/day is expected to grow to 55,000m3/day by 2020. The crisis is worse during the dry

season (June to November) with water restrictions and rationing more common and regular in

recent years and this will get worse if appropriate measures are not taken immediately. The limited

availability and access to water supply services continue to pose severe challenges for the

development of other sectors constraining the overall social and economic development of the

Island State.

1.1.2 It was at the back drop of this water crisis, that the Government of Seychelles (GOS)

prepared a Water Development Plan (WDP) covering a planning horizon of 2008 - 2030 with

financial support from the African Water Facility (AWF). The WDP identified and prioritised

options for Seychelles which are integrated with the improvements already made to the system in

the recent past. It provides the road map for augmenting the resources and increasing efficiency in

four broad areas: (i) enhancement of water storage capacity, (ii) development of desalination

capability, (iii) reduction of Non Revenue Water (NRW), and (iv) water demand management and

institutional strengthening.

1.1.3 The Public Utility Corporation (PUC) is actively working with other partners to translate

the WDP into action. The PUC recently procured additional desalination facilities with resources

from the GOS. In addition, with support from the European Investment Bank (EIB), preparations

are underway to rehabilitate existing desalination facilities thereby increasing reliability of the

facilities. The detailed feasibility study for the reduction of non revenue water was undertaken with

assistance from EIB and further discussions to rollout the program on a priority and sequenced

basis is ongoing. While this discussion is proceeding, the PUC is taking measures to improve

institutional and technical efficiency by filling key technical and managerial positions with

internationally recruited personnel and further training its staff. It also commenced the review of

tariff with support from Arab Bank for Economic Development in Africa (BADEA) in line with

the recommendations of the WDP. All these activities fall under the intervention areas defined

from (ii) to (iv) in the preceding paragraph and are mutually reinforcing. While all these

interventions will contribute to the improvement, there is greater need for increasing the storage

capacity for fresh water as it is essential to ensure year round availability of water of acceptable

quality. Due to the magnitude of the crisis and level of intervention required, there is greater need

to focus immediate attention on Mahe Island.

1.1.4 The WDP emphasizes the prioritization of maximising the capturing of surface water

resources to fill up the remainder from the production from desalination. The potential for ground

water is limited on Mahe Island. The WDP specifically recommends the immediate raising the

2

height of La Gogue Dam on a priority basis to increase the water storage capacity. According to

previous studies and WDP, raising of the height of La Gogue dam by about 5m would alone

increase the reliable yield by an average of 3,900m3/day. This additional resource is equivalent to

about 50 days of water for the Islands representing 14% of water currently produced. The other

alternative considered for storing water was the building of a new dam on the Grand Anse River.

However this alternative was dropped due to the environmental concerns and engineering

complexities. The raising of the La Gogue dam was therefore deemed the most attractive option

due to the amount of fresh water storage to be achieved and the potential for transfer of water from

adjacent surplus catchment. The raising of La Gogue dam is therefore a strategic water security

enhancement scheme for Seychelles and there is need to further investigate this option to confirm

the feasibility of the scheme.

1.1.5 The development of this scheme, if feasible, will further provide the possibility to improve

the La Gogue distribution zone with the construction of La Gogue water supply treatment plant

(gravity fed system) resulting in net cost saving over longer period from the present energy

intensive distribution system in La Gogue area, thereby contributing to the mitigation of climate

change. This region is considered to have intermittent supply due to problem of low pressure and

long distances from the existing treatment plants at Hermitage and Le Niol. There are 12 pumping

stations within this area with high energy costs. In order to reduce these constraints, a new system

is proposed, namely the construction of a new treatment works at La Gogue providing supply

directly to this distribution zone.

1.1.6 The La Gogue development requires complex engineering modelling and investigations of

the present dam and distribution system which therefore requires the engagement of experts to

carry out the feasibility study and detailed designs. The Bank fielded a mission in August 2011 to

discuss the outcome of the WDP with key government officials, the PUC Board and other officials,

and confirmed the need to carry out a feasibility and detail designs study to ascertain the viability

of the scheme and provide further detail designs for implementation. The GOS requested the Bank

for assistance with MIC grant resources (annex v) to carry out the study. The request from the

GOS is in line with the mission’s findings and conclusions and the proposed project complies with

the requirements for the Administration and Utilisation of the Technical Assistance Fund for the

Middle Income Countries.

1.1.7 The proposed study is prioritised in the WDP and is consistent with the Country Strategy

Paper (CSP) 2011-2015 for Seychelles which anchored water supply as one of the priority areas

for the country’s economic and social development.

1.2 Objectives of the MIC Grant

1.2.1 The objective of the MIC grant is to assist the GOS undertake the preparation of follow on

investments as recommended by the WDP to address the chronic water shortage on Mahe, the

main island of Seychelles. It will specifically support the feasibility study and detailed designs for

(i) increasing the storage capacity of the la Gogue dam reservoir; and (ii) improving the La Gogue

distribution system.

1.3 Justification for the Use of Resources

1.3.1 The unmet demand for Seychelles is estimated at 40% according to the WDP for 2010. The

3

deficit will continue to increase if further investments are not made timely as recommended

inhibiting the economic and social development of the country. It is therefore imperative that the

priority activities in the WDP are implemented in a timely and orderly manner. The enhancement

of storage at La Gogue dam reservoir is one such activity to ensure water security. The PUC has

already embarked on smaller scale improvements to transfer water to the La Gogue dam reservoir.

The Salazie and Mount Simpson transfer schemes (4500m3/day capacity) being implemented by

the PUC with an outlay of SCR 35 million are typical examples of the efforts to increase

availability of water resources. The benefit of such schemes will be much more enhanced with an

increase in storage volume. The implementation of this scheme is therefore critical to enhance the

capacity of water storage and provide water security to the main island. The storage enhancement

scheme will also enable the improvement of the La Gogue distribution system. The WDP shows

that the benefits of the new system over the long term is enormous in terms of improving

efficiency of the system and reducing operation and maintenance costs. The improvement of the

system will see the reduction of pumping stations and shorter distances along the distribution

network thus resulting in better control of the residual chlorine contact, better pressure

management and leak control. The technical justification described above provides the justification

for carrying out the feasibility study and detail designs preparation in order to make the project

ready for implementation.

1.3.2 The GOS approved the WDP in June 2011 and immediately embarked on the

implementation of the recommendations of plan. The GOS further demonstrated its leadership and

political commitment to the implementation of the WDP by organising a donors’ conference on

13th

September 2011 to mobilise support for the implementation of the WDP. The conference was

successful and was attended by government officials, donors including AWF, EIB, BADEA,

UNDP, Embassies and other stakeholders. Donors expressed their commitment to strengthen their

collaboration with GOS for the implementation of the WDP.

1.3.3 The Bank’s CSP gives prominence to infrastructure development vis-à-vis addressing the

country’s development shortcomings. The CSP prescribes strengthening private sector

development and economic competitiveness as its overarching strategic pillar. The pillar is broken

up into three separate and complementary sub-components: (i) Infrastructure development, (ii)

enabling financing and regulatory environment, and (iii) human capacity development. Within the

infrastructure component, deficiencies in communication infrastructure, recurring water supply

shortage and limited regional links to main land Africa were recognized as critical bottlenecks. As

emphasized in the CSP, the project will contribute to the achievement of the pillar objective by

removing water supply constraints for the growing private sector in the tourism which is the

mainstay of the economy and other sectors. It will contribute to the enhancement of the

competitiveness of Seychelles as a preferred destination in tourism.

STUDY DESCRIPTION

2.1 Study Components

2.1.1 The study will have two main components: (i) increasing the storage capacity of La Gogue

dam reservoir and (ii) improvement of the La Gogue distribution system zone. The study will be

undertaken in two phases. An abridged TOR is provided Annex 7.

4

A. Component 1- Increasing the Storage Capacity of La Gogue Dam Reservoir

2.1.2 The existing La Gogue Dam, completed in 1979, is one of the main water supply reservoirs

for the North East Mahé Water Supply System. The Dam is a homogeneous earth fill dam with a

maximum height of 35 m from the excavated foundation level and a length of 152 m at the crest.

The dam, after being in existence and operation for more than 30 years, it is in a very good

condition and is quite safe. The idea to raise the dam wall to increase storage capacity has been

under discussion since the 1990s and it has become again a priority in the WDP and is widely seen

as a potential solution to contribute to addressing the water shortage.

2.1.3 The proposed feasibility study therefore aims at validate previous assumptions and

analysis, and to take the project forward with full scale technical assessment, economic and

financial viability study including environmental and social impact assessment. On the basis of

feasibility study, the best scenario will be adopted for further detail designs.

B. Component 2 - Improvement of the La Gogue distribution system

2.1.4 The La Gogue distribution area (north east and north west of Mahe) is considered to be a

problem area with low pressure zones and the water is travelling long distances from treatment

plants to the consumers. The existing system is further characterised by many pumping units with

high energy costs. In order to reduce these constraints, a new system is proposed, namely the

construction of a new treatment works near the La Gogue reservoir for the treated water to flow by

gravity to most areas in the distribution zone. During phase 1 of the study, on the basis of

information provided in the WDP and additional information to be secured from the PUC, detailed

technical, environmental and social, operational, economic and financial feasibility will be carried

out to revalidate the overall feasibility of the system followed by preparations of detail design, cost

estimates, tender documents and ESMPs.

2.2 Expected Outputs

2.2.1 The following are the outputs of the study:

Phase 1 Phase 2

Geotechnical Investigation Report

Hydrology and Water Resources

investigation Report

Topography Survey Report

Design Criteria Report

ESIA report, ESMP, Scoping RAP

Feasibility Reports

Revised Design Criteria Report

Detail design report

RAP and updated ESMP

Tender Documents

3. STUDY COST ESTIMATES AND FINANCING PLAN

3.1 Cost Estimates (foreign and local)

3.1.1 The total cost is estimated at UA 717,133 (SCR 13.762 million excluding taxes and

5

customs and duties), of which UA 580,098 will be in foreign currency and UA 137,036 in local

currency. The Cost per study component including five (5) percent for contingency, are provided

in Table 3.1 below. The corresponding preliminary cost breakdown schedule (in Euro) is provided

in annex 1.

Table 3.1: Estimated cost by component

Components

SCR UA % of

foreign

exchange Local Cost Foreign cost

Total

Local Cost Foreign cost

Total

Increasing the La Gogue

Dam Storage

1,552,093 8,210,796 9,762,889 80,876

427,844

508,720 84%

Improvement of La

Gogue Distribution

System

481,887 2,049,490

2,531,377 25,110

106,794 131,904 81%

Miscellaneous

470,655 342,295

812,950 24,525

17,836 42,361 42%

Total base cost 2,504,635 10,602,581 13,107,216 130,510 552,474 682,984 81%

Contingencies 125,232 530,129

655,360.82 6,525 27,624 34,149 81%

Total cost 2,629,867 11,132,710 13,762,577 137,036 580,098 717,133 81%

3.2 Financing Plan

3.2.1 The assignment will be financed by the MIC Trust Fund and the GOS. The MIC Trust Fund

will finance UA 600,000 i.e. 84% of total costs. The MIC Trust Fund will cover 100% of the foreign

exchange costs (F.E.) and 14.5% of the local costs (L.C.) while the GOS contribution of UA 117,133

will finance 16% of the total cost, all of which are local costs. The proposed financing plan for the

assignment is indicated in the table below.

Table 3.2 Estimated Cost by Financing Source

Source Foreign

exchange

Local

currency Total cost % of total

GOS 0 117,133 117,133 16%

MIC 580,098 19,902 600,000 84%

Total 580,098 137,035 717,133 100%

4. PROCUREMENT

4.1.1 Procurement arrangements are summarized in Table 4.1 below. All procurement of goods,

works and acquisition of consulting services financed by the MIC Grant will be in accordance with

the Bank’s “Rules and Procedures for Procurement of Goods and Works ” or as appropriate “Rules

and Procedures for the Use of consultants” using the relevant Standard Bidding documents.

6

Table 4.1 Procurement Arrangements (UA Million)

Category Short List Other Total

Consulting Services 0.673 (0.600) 0.673 (0.600)

Operating Costs 0.044(0) 0.044(0)

Total 0.673 (0.600) 0.044(0) 0.717 (0.600)

() Figure in bracket to be financed from the MIC Trust Fund

4.1.2 Procurement of the Consultant: An engineering firm will be recruited to undertake the

feasibility and detail design study including the environmental impact assessment at a total estimated

cost of UA 0.673 million. The selection procedure and evaluation criteria to be adopted for the

consultants is on the basis of the Quality and Cost Based Selection (QCBS) method using an

international shortlist. A specific procurement announcement shall be published in the United Nations

Development Business Journal and the local press.

4.1.3 General Procurement Notice: A General Procurement Notice will be agreed upon with the GOS

and will be issued for publication in UN Development Business online (UNDB online) and the Bank’s

website, upon approval of the Grant Proposal by the Board of Directors.

4.1.4 Review Process: The following documents shall be subject to prior review and approval by the

Bank before promulgation: (i) Shortlist (ii) Request for Proposal (iii) Report on Evaluation of

Consultants’ Proposals (iv)The Draft Consultancy Services Contract.

5. IMPLEMENTATION

5.1 The PUC is a parastatal body wholly owned by the Government of Seychelles. It reports to

the Ministry of Environment, Natural Resources and Transport and is regulated by the Public

Utilities Act of 1st January 1986.

5.2 The PUC is responsible for;

1. The generation, transmission, distribution and sale of electrical energy on the main islands

of Seychelles;

2. The treatment of raw water and supply of potable water to the population of Seychelles;

3. the treatment and disposal of waste water and maintenance of sewerage treatment plants.

5.3 The PUC will be the project Executing Agency and contracting entity and the PUC’s

Projects Director will be the project coordinator who will be responsible for day to day project

management and coordination. This is a new position created to coordinate the implementation of

the WDP and based on the lesson from previous project implementation in PUC.

5.4 The proposed MIC grant will be implemented over a period of 14 months, from December

2011 to March 2013. The project schedule is presented in annex 2. The PUC will coordinate the

study and will manage daily implementation activities, including acquisition of services,

monitoring of activities, accounting activities and reporting.

7

6. FINANCING ARRANGEMENTS

6.1 Disbursements

6.1.1 Resources of the MIC grant will be used to pay for services rendered by the consulting firm

for the feasibility study and detailed designs. Disbursement of the grant will be made by direct

payment to the consultant in either USD or EURO currencies. All disbursements under the grant

would be subject to Bank rules on disbursements, as set out in the Bank’s disbursement handbook.

6.2 Suspension of Disbursements

6.2.1 Disbursements from the MIC Trust Fund will be subject to the Bank’s Disbursement Rules,

including, without limitation, the rules on suspension of disbursements.

6.3 Letter of Agreement

6.3.1 Upon approval of grant request, a Letter of Agreement will be drafted by the Bank (GECL)

in accordance with the format provided in Annex 5 of the Guidelines for Administration and

utilization of the Technical Assistance Fund for MIC and signed by authorised representatives of

the Bank and GOS.

7. CONCLUSIONS AND RECOMMENDATIONS

7.1 Conclusion

7.1.1 GOS continues to demonstrate its dedication and commitment to seeing the resolution of

the recurring water supply challenges. It is with this in mind that the GOS prepared the WDP, with

support from the AWF, to guide the sector to the year 2030. This is a significant step forward, and

the implementation of some of the recommendations of the plan requires further detail studies.

This proposal for the feasibility study and detailed designs is technically feasible and highly

desirable to further the social and economic development of Seychelles. It will generate detailed

scope, design, specifications, drawings, tender documents, ESIA and RAP and all other necessary

institutional and technical information in readiness for project implementation to enhance water

security and increase efficiency of the water systems. The project when ready will attract

financing.

7.1.2 The proposed study is in line with current CSP 2011-2015 and falls under the infrastructure

development subcomponent and will contribute to the overarching CSP pillar, strengthening

private sector development and economic competitiveness. The study is the first step in project

development to address the recurring water shortage and its contribution to the achievement of the

pillar objective is high.

7.1.3 The projects that will come out of the feasibility study will enhance water security and

increase efficiency of the water systems in Seychelles which conform to the goal of the WDP and

the CSP when implemented.

8

7.2 Recommendations

7.2.1 It is recommended that a MIC grant not exceeding UA 600,000 be extended to the

Government of Seychelles to carry out the study described in this report.

1

Annex 1. Detailed Study Cost Estimate

1

Annex 2 – Project Implementation Schedule

1

Annex 3 – Administrative Map of Seychelles

Disclaimer: This map has been provided by the ADB Group’s staff exclusively for the convenience of the readers of the report. The denominations used and the boundaries shown on this map do not imply, on the part of the Bank Group and its affiliates, any judgement on the legal status of any

territory or any endorsement or acceptance of such boundaries.

1

Annex 4 – Letter of Agreement

AFRICAN DEVELOPMENT BANK

Honourable Danny Faure

Vice President and Minister of Finance and Trade,

Republic of Seychelles

Victoria, Mahe, Syechelles

Dear Vice President:

Subject: Letter of Agreement – Increasing the Storage Capacity of LA Gogue Dam

Reservoir and Improvement of the Distribution System - Feasibility and Detailed Design

Study

I am writing on behalf of the African Development Bank to indicate the Bank’s decision to

provide to the Republic of Seychelles, (the Recipient) a Grant in an amount not exceeding UA

600,000 (the “Grant”). The purpose of the Grant is to finance the preparation of the feasibility

study and detailed designs for increasing the La Gogue reservoir storage and improvement of the

distribution system.

The Grant is being provided for the purposes and on the terms and conditions set forth in

the Attachments hereto, and the Recipient hereby represents, by confirming its agreement

hereunder, that it is authorized to contract, withdraw, and utilize the Grant for the said purposes

and on the said terms and conditions.

The provision of this Grant does not constitute or imply any commitment on the part of the

Bank to assist to finance or part finance the[ project or any project developed as a result of the

study or other purpose] for which the Grant is provided.

Please confirm your agreement with the foregoing and the conditions and terms attached

hereto, on behalf of Republic of Seychelles, by signing, dating, and returning to us the enclosed

copy of this letter. This agreement will become effective on the date of countersignature by the

Bank.

2

Sincerely,

_______________________________ Date: _________________

Vice President, Operations, Infrastructure

Private Sector and Regional Integration

AFRICAN DEVLOPMENT BANK

AGREED ON BEHALF OF REPUBLIC OF SEYCHELLES

By: Honourable Danny Faure

_____________________________ Date: ________________

Vice President and Minister of Finance and Trade

Republic of ---------------------------------------

Date: -----------------

1

ANNEX 5– MIC Request from GOS

2

3

4

1

Annex 6 Terms of Reference (Abridged)

LA Gogue Reservoir Storage Enhancement and Distribution System Feasibility and Detail

Design Study

1. Background

The Republic of Seychelles is an archipelago of 115 islands scattered over 1.3 million square

kilometres of sea in the middle of the Western Indian Ocean North of Madagascar. The present

population in Seychelles is estimated at 83,000. Mahe is the largest and most populated island of

the Seychelles Archipelago with approximately 74,000 followed by Praslin - 6,500 and La Digue

- 2,500.

As a direct response to the water crisis, the African Water Facility (AWF) supported the

Government of Seychelles (GOS) to prepare the Water Development Plan (WDP) 2008-2030.

The WDP preparation was finalized and ratified by the GOS on 15 June 2011. The WDP is the

road map to guide investment in the sector. Among the projects identified by the WDP as a

priority for implementation during the first phase of the WDP are the enhancement of the

capacity of La Gogue Dam Reservoir and Improvement of the La Gogue Distribution System.

The La Gogue Reservoir is one of the main reservoirs for water supply for the Mahe Island. Due

to high withdrawal and limited storage volume, water levels at the dam are reported to be very

low during the dry season. The existing and projected demands greatly exceed the existing water

supply capacity.

The GOS has applied for a grant from the African Development Bank (AFDB), from Middle

Income Countries Facility (MIC) established to support countries in the preparation of projects

for follow on investment to promote sustainable development and economic growth. The GOS,

through the Public Utility Corporation (PUC), intends to use the proceeds of this grant, to carry

out feasibility studies and detail designs relating to the increasing storage capacity of La Gogue

Dam Reservoir and improvement of the La Gogue distribution system.

2. The Executing Agency

ThePUC is a parastatal body wholly owned by the Government of Seychelles. It reports to the

Ministry of Environment, Natural Resources and Transport and is regulated by the Public

Utilities Act of 1st January 1986. The PUC will be the project Executing Agency and contracting

entity and projects director of PUC will be the project coordinator who will be responsible for

day to day study management and coordination.

3. Description of the Consultancy

The study will have two main components: (i) increasing the storage capacity of La Gogue dam

reservoir and (ii) improvement of the La Gogue distribution system.

3.1 Component 1- Increasing the Storage Capacity of La Gogue Dam Reservoir

2

The existing La Gogue Dam, completed in 1979, is the main water supply reservoir for the North

East Mahé Water Supply System. The reservoir receives water through a 450 mm dia. ductile

iron (DI) pipeline from Rochon reservoir. Water is drawn from La Gogue reservoir through the

same pipeline to Hermitage Treatment Plant. Through the same pipeline it also receives excess

raw water when demand at Hermitage is fully satisfied from other sources such as Rochon. The

system entirely operates on head. The useful capacity of the reservoir at Full Storage Level

(FSL) is about 850,000 m³. The designed withdrawal capacity at present is 14 000 m³/day.

Figure 1. Google Map of the La Gogue Dam Reservoir Area

The Dam is a homogeneous earth fill dam with a maximum height of 35 m from the excavated

foundation level and a length of 152 m at the crest. Selected low permeability or comparatively

more impervious material is used for the central core, and the shoulders are made of semi

impervious or impervious material. The dam is also provided with riprap on the upstream from

about the maximum drawdown level up to the top. The downstream slope has turfing and toe

drains. The dam, after being in existence and operation for more than 30 years, it is in a very

good condition and is quite safe.1

1 Report of Examination of potential dam sites

3

Discharge of flood waters is over an uncontrolled spillway, 6 m wide at the control, with a chute

at the right flank of the dam. An intake tower with a 2 m dia. outlet tunnel at the left side caters

for the water supply system. The reservoir has got two saddles, one at the left side and the other

at the right side at the upstream reservoir rim.

Seepage through the existing dam is being measured at three locations: (i) seepage at the south

side of spillway, (ii) seepages downstream of dam toe, and (iii) seepages through drainage wells.

Maximum seepage occurs during the period January to March which corresponds to the

rainy/wet season. The seepages occurring are considered as not of any concern from the point of

view of the safety of the existing dam structure2.

The idea of raising the dam to increase storage capacity has been in discussion since the 19903

and it has become again an issue in the WDP and is widely seen as a potential scheme that will

contribute to addressing the water shortage. The existing condition of the dam, the topography,

and the geotechnical conditions at the site are believed to permit increasing the height of the dam

by 5 to 6 m without involving major abutments hill cuttings, with a new spillway and required

abutments modifications. In addition to the technicalities of raising the dam, the critical

questions of whether the dam can be filled from the catchment and/or transfer and what is the

reliable yield and contribution to addressing the water shortage need to be firmed up with proper

analysis. Early analysis of the WDP shows that raising the dam by about 5m will have a

confirmed average yield increase of 3900m3/day and this yield will increase with building

additional transfer capability directly or through the Hermitage system. The transfer schemes

under construction (Salazie and Mt. Simpson) will undoubtedly contribute to the increase of the

yield. The feasibility study should actually demonstrate that the raised dam can be filled in with

water and can bring clear demonstrable net benefit to the Seychelles.

3.2 Component 2 – Improvement of the La Gogue distribution system

The area from Anse Etoile in the north-east to Sorento in the northwest is supplied from

Hermitage Treatment Works and Le Niol Treatment Works respectively. This region is

considered to be a problem area with low pressure zones and relatively long travelling distances

from their respective treatment plants. Approximately 4000 inhabitants are believed to be served

by this system. There are 12 pumping stations within this area with high energy costs. In order to

reduce these constraints, a new system is proposed, namely the construction of a new treatment

works at La Gogue (4000m3/day) with a proposed elevation of about 120 m Above Mean Sea

Level (AMSL). The Water Development Plan indicates that the benefits of the new system over

the long term is enormous in terms of improving efficiency of the system and reducing operation

and maintenance costs.

The proposed design comprises a circular main (500m3) on the easterly side. The smaller water

tanks are located at levels of 125 to 140 m AMSL and it is proposed to service them through a

new water tank constructed at Upper La Gogue. Overall according to the WDP, two reservoirs of

2000m3 at the treatment plant, two more of 500m3 each and one of 50m3 are recommended with

an estimated 21km of pipelines, their diameters ranging from 300mm to 100mm. Schematic

drawings for the treatment process and distributions system are available in the WDP.

2 Report on Examination of potential dam sites

3 GIBB Study 1990

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4.0 Scope of Services

4.1 Feasibility

The feasibility study for both components aims at confirming, validating previous assumptions

and analysis, and take the project forward with full scale technical assessment, environmental

and social assessment, economic and financial viability study.

The schematic designs and information available in the WDP shall provide the basis for the

feasibility study. For component 2, the preliminary design provided in the WDP is considered

sufficient though the consultant is required to validate it to complete the technical feasibility.

The study will in general address the following key issues:

i. Carry out a detailed investigation of the various aspects of increasing the storage capacity

of the existing La Gogue dam will be carried out covering the technical / physical

structures and available water resources.

ii. Review and examine all previous preliminary studies undertaken confirm the validity of

assumptions made in the various studies and proposals including the findings, advice and

recommendations made;

iii. Undertake topographical surveys (tachymetric, bathymetric, GPS or areal photography)

and shall cover the dam embankment, the reservoir surroundings in all directions,

downstream location of the treatment plant, service reservoir sites, pipe alignments and

coordinates of all existing infrastructure around shall be determined.

iv. Undertake geotechnical investigation (field and laboratory) to determine the optimum

height for raising and methodology, establish the seepage/leakage and determine the

potential repair methodology, identify source for construction material;

v. Carryout hydrological investigations and modelling, flood peak analysis, sediment load

analysis, reservoir bed and dam seepage analysis, water resources data, safety

inspections, hydrodynamic studies and observations and laboratory testing will be carried

out.

vi. Analyze information about hydrology and water resources within the current and

potential reservoir catchment and outside with the objective of transferring water in terms

of availability, pattern and technical feasibility. Particular effort will be geared at

identifying new unexplored potentials for harnessing fresh water for possible transfer and

contribution to the La Gogue reservoir.

vii. Models shall be designed to analyze data, verify to what extent existing transfer schemes

and storage during peak rainfall period will sustain/justify the raising of the dam. Further

analysis of transfer (in particular during the dry season) will be considered to boost the

use of the raised dam.

viii. Identify and compare on the cost and technical engineering analysis on options of

determining the optimum level of raising the Dam height from safety, construction,

operation, water resources availability (including transfer), availability of construction

material. Priority will be given to maximizing the storage capacity of the reservoir.

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ix. Carry out environmental and social impact assessment (ESIA) in line with the AfDB

ESIA policies and procedures and the laws concerning environment in Seychelles. On the

basis of the assessments and chosen optimum solutions, mitigation measures and

requirements shall be specified and determined including the cost associated with it.

x. Carry out an analysis of the impact of climate change on the scheme outcome and should

outline the possible mitigating and adaptation measures.

xi. Economic and financial feasibility of the scheme shall be carried out for the potential

development scenarios and an analysis of any economic externalities will be done. It shall

also carry out sensitivity analysis with positive and negative extremes with assumptions

of potential economic and financial externalities.

xii. Establish design criteria and for the chosen development scenario a preliminary design

shall be developed.

xiii. Prepare preliminary cost estimates for all components of the study and shall

include the construction of works, social, resettlement, and environmental costs and

contingencies/escalations (physical and price).

The following reports shall be produced and submitted to the client.

Feasibility Inception Report: this report should provide consultant’s organization to carry out

the assignment, program of work, methodology, approach and schedule of man-power and all

revised to reflect the result of contract negotiations and consultant’s initial findings.

Design Criteria Memorandum: consultant shall produce a summary of the design approaches

to be followed, the design criteria, a detailed program and details of any other topic that is

relevant to the design phase.

Topography Survey Report: this report should provide the equipment used, the methodology

adopted, problems encountered, precision obtained for the data points and extent of scope

covered.

Hydrology and Water Resources report: This report shall provide the extent of data collected,

gaps identified, methodology to fill gaps, analysis and interpretation and implication for the

design.

Geotechnical Report: the report should provide the detail account of equipment, location,

timing, samples collected, type test conducted on site and in laboratory, result obtained, analysis

and interpretation and implication for design.

Feasibility Report: The report should provide comprehensively the options and technical

analysis and findings of the consultants, preliminary design, preliminary cost estimates,

economic and financial analysis.

ESIA and ESMP: The ESIA report should contain a non-technical Summary of the project and

main report with proposed activities, baseline environmental and social conditions, modifications

of the various environmental elements as consequence of the project, and mitigating measures to

eliminate or reduce the negative impacts on the environmental quality and measures to ensure

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sustainability. The report shall contain the ESMP and Scoping paper for Resettlement Action

Plan (RAP)

4.2 Detailed Design

Following satisfactory completion and confirmation of the feasibility of the project, the project

design will move to the second phase and will undertake the following key activities:

i. Design the Works taking into consideration information from the above tasks and any

additional information from any other source. The design shall be carried out to a level of

detail sufficient for international tendering and implementation.

ii. For all significant structures and elements, this work shall include, but not be limited to,

the complete design of hydraulic structures, foundation treatment and grouting,

instrumentation, seepage analyses, stability, deformation and stress analysis and

architectural work and finishing. Structures and components shall be designed for steady

state and transient conditions, where applicable.

iii. The Consultant shall complete designs for the mechanical and electrical systems, pipes,

dam safety monitoring system, drainage, lighting, etc. and shall specify all the

components required for these systems.

iv. For the major items of mechanical and electrical equipment such as gates, valves, pumps

etc., the Consultant shall define the outline design and specify performance

characteristics of the equipment in sufficient detail for specialized equipment suppliers to

undertake detailed design and manufacture.

v. Prepare the detail designs, calculations, drawings, technical specifications for both

component facilities. The design for the treatment shall be limited to outline design

sufficient enough for a turnkey contract.

vi. Prepare detailed engineering cost estimates with all costs up to the end of defect liability

period with complete bill of quantities including preliminaries and general items with

2010 as the base year.

vii. Prepare complete tender documents in line with AfDB standard bidding documents

The following design and design related reports shall be produced and submitted to the client.

Technical Briefs: At pre-determined milestones throughout the detailed design process, the

Consultant shall submit technical briefs on particular parts of the work. The Consultant shall

identify such milestones in his design program.

Detailed Design Report: The Consultant shall submit a self-contained report describing the

detailed design process, consolidating the information covered in previous submissions, with any

revisions made in the course of discussion, review and refinement. The report shall be prepared

and issued initially as a draft report for review by the Client. It shall include the results of all

studies and investigations, with tables and drawings, and it shall, after review and incorporation

of all queries and acceptance by the Client.

RAP and ESMP: The consultant shall prepare the detailed RAP and its summary and update the

ESMP prepared during the feasibility stage on the basis of the final design.

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Tender Documents: The Consultant shall prepare complete set of Tender Documents and shall

use the African Development Bank SBD for the La Gogue Dam Reservoir while he will use the

FIDIC documents for the La Gogue treatment plant and distribution system. The contract

conditions, including payment conditions, the specifications and the bill of quantities, shall be in

keeping with recognized practices on projects of this nature. The documents shall describe the

Works, including temporary works as necessary, in sufficient detail to allow tenderers to

confidently determine their cost of construction, and ensure the receipt of comparable tenders.

Engineer’s Cost Estimate: The Consultant shall prepare an Engineer’s Cost Estimate for all

works based on the detailed design carried out and tender drawings prepared.

5. Schedule, Reporting Requirements and Deliverables

The duration of the feasibility study (4 months) and detail design (3 months) should not exceed 7

months from the date of appointment. The overall envisaged project delivery schedule is shown

below.

Table 4.1 Delivery Dates and Payment Schedule

Nr Deliverable Title Due Date

0 Notice to Proceed M

Feasibility Study

1 Feasibility Inception Report M+1

2 Design Criteria Memorandum M+1.5

3 Topographic Survey Report M+2

4 Hydrology and Water Resources Report M+2

4 Geotechnical Report M+2

5 Draft EIA and Draft EMP M+3

6 Final EIA, Final EMP, and Scoping RAP M+4

7 Draft Feasibility Report M+3

8 Final Feasibility Report M+4

Detailed Design

9 Detailed Design Inception Report M+5

10 Review Design Criteria Memorandum M+5

11 Draft RAP M+5

12 Final RAP M+6

13 Draft Detailed Design Report M+6

14 Final Detailed Design Report M+7

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6. Composition of the Consultancy Team and Qualifications

The Level of Effort (LOE) of professional staff to be provided by the Consultant is estimated at

23 person months for the Feasibility Study and 22 person months for the Detailed Design and

Tender Documentation. These estimates are provided for guidance and the tenderer shall come

up with firm proposals including justifications for variance.

The Consultant shall provide adequate staff with appropriate qualification and experience to

undertake the works described herein. Key personnel shall have at least five years experience on

similar projects in developing countries and experience in the region.