Feasibility Report – Busia Nzoia Cluster – Feasibility
Executive Summary Phase II Towns – Kakamega, Busia and
WATER SUPPLY AND SANITATION PROGRAMME
FOR THE NZOIA CLUSTER
PHASE II Towns - Kakamega, Busia, Nambale
FEASIBILITY REPORT – BUSIA
EXECUTIVE SUMMARY
TABLE OF CONTENTS
EEXECUTIVE SUMMARY
E.1Introduction
E.2Present Situation
E.2.1Existing Water Supply System
E.2.2Existing Sanitation System
E.3POPULATION AND WATER DEMAND
E.4PROPOSED REHABILITATION MEASURES AND COSTS
E.4.1Water Supply System
E.4.2Sanitation System
E.5Proposed Expansion Measures and Costs
E.5.1Water Supply System
E.5.1.1Alternative Scheme 1 – Gravity Scheme from Malakisi River
E.5.1.2Alternative Scheme 2 – Pumping Scheme from Existing Intake on Sio River
E.5.1.3Economic Comparison of the Alternative Water Supply Schemes
E.5.1.4Recommended Alternative
E.5.2Sanitation System
E.6water and sanitation service providers
E.7financial analysis
CES/GFA/MIBP JV i
Feasibility Report – Busia Nzoia Cluster – Feasibility
Executive Summary Phase II Towns – Kakamega, Busia and
EEXECUTIVE SUMMARY
E1Introduction
Busia District is one of the eight districts that make up WesternProvince. The District lies between Latitudes 0o 01’36” South and 0o33” North and Longitudes 33o54’ 32” East and 34o25’ 24” East. It covers a total area of 1,261km2.
BusiaMunicipality is located in both Busia and Teso Districts.The Busia–Kisumu Road serves as the boundary between the two districts.BusiaMunicipality is the district headquarters of Busia District and is located at the border of Kenya and Uganda.The Municipality covers a total area of 44 Km2.
This Report details a Study of the existing water supply and sanitation systems in the Municipality and presents proposals for Rehabilitation and Expansion of the systems to meet the current (year 2005) and future (up to year 2025) demand.
E2Present Situation
E2.1Existing Water Supply System
The existing Busia Water Supply Systemisa pumping scheme from River Sio located 12km from BusiaTown. It serves BusiaMunicipality and the surrounding rural areas of Mundika, Bugengi and Angoromo. It also serves the neighboring Funyula Bumala Water Supply Scheme. The water supply is supplemented by groundwater from 8nr boreholes, with a total yield of 1080m3/d.
Water from the River Sio is treated at a Treatment Works consisting of Conventional Treatment Units, with a total design capacity of 2,700m3/d.
The Distribution System comprises approximately 78km of pipelines, diameters varying from 200mm to 50mm and below, covering an area of 62 Km2. 4nr Storage Tanks give a total storage capacity of 652m3 within the system.
The Water Supply System is presently operating well below its design capacity. The combined design capacity of the River Sio Boreholes Systems is 3,780m3/d, while the currently average daily production is 2,005m3/day or 53% of the design capacity. Some of the observations made on the system are as follows:
- The System, which is dependent on pumping of raw and treated water, is unable to operate at its full design capacity mainly due to frequent disruptions in power supply from the National Power Grid.
- 2 of the 8nr boreholes in the system are presently non operational, reducing water production further.
- Effective distribution of water is hampered by the existing Distribution System that has over the years had many haphazardly constructed and unmapped lines added to it. As a result, the System is now not properly understood for operation, isolation for repairs, rationing etc
- The System presently only serves BusiaTownand the Funyula Bumala Scheme. The rural areas originally supplied by the system have not received water since the early 1990’s due to inadequate water production.
E2.2Existing Sanitation System
The existing sanitation system in BusiaTownwas constructed in 1983. It serves the Town centre and the adjacent residential areas. It consists of:
- Sewer Network with approximately 10.6km of sewers varying in diameter from 150mm to 400mm, with 600nr service connections.
- Sewage Treatment Works comprising a waste stabilisation ponds systemwith a design capacity of 800m3/day (Dry Weather Flow).
The Sewers and Sewage Treatment Works arepresently underutilized. The current average daily flow into the Sewage Treatment Works is510m3/d which is64% of its design capacity.
The underutilization of the Sewerage System is mainly due to the suppressed water supply in the Town, which makes construction of water borne sanitation systems unviable to most households. Pit latrines are the predominant system for sanitation.
No laboratory equipment is available for analysis of treated and raw sewage to enable monitoring of efficiency of wastewater systems
E3POPULATION AND WATER DEMAND
The present (year 2005) population of Busia Municipality and the rural sub locations within the Service Area of the Busia Water Supplyis estimated to be 52,142. The current water demand in the service area,based on the present population, is estimated to be 7,564m3/d. The design capacity of the system is 3,780m3/d or 50% of the present demand while the present average water production is2,005m3/d, which is only 26.5% of the current demand.
The population of BusiaMunicipalityis projected to grow at a rate of 2.5% per annum to 85,969by 2025.The water demand in the Municipality will then be12,846m3/d.
E4PROPOSED REHABILITATION MEASURES AND COSTS
E4.1Water Supply System
The rehabilitation works necessary to bring the existing water supply system to its design capacity are summarized in Table E1:
Table E1 - Proposed Rehabilitation Measures for Busia Water Supply SystemDESCRIPTION / AMOUNT (KShs) / AMOUNT* (EURO'S)
1 / Rehabilitation of Raw Water Intake Works and Pump House / 9,446,120.00 / 107,342.27
2 / Rehabilitation of Raw Water Rising Main / 270,000.00 / 3,068.18
3 / Rehabilitation of Treatment Works / 4,376,000.00 / 49,727.27
4 / Rehabilitation of Treated Water Pumping Station / 15,445,600.00 / 175,518.18
5 / Rehabilitation of Treated Water Rising Mains / 82,616,000.00 / 938,818.18
6 / Rehabilitation of Storage Reservoirs / 1,600,000.00 / 18,181.82
7 / Rehabilitation of Distribution System including installation of zonal bulk meters, consumer meters and extension of service mains / 57,777,588.80 / 656,563.51
8 / Rehabilitation of Boreholes / 11,072,000.00 / 125,818.18
9 / Procurement of computer hardware and software, tools for operation and maintenance, vehicles etc. / 23,320,000.00 / 265,000.00
SUB TOTAL 1 / 205,923,308.80 / 2,340,037.60
ADD 20% FOR PRELIMINARIES AND GENERAL ITEMS / 41,184,661.76 / 468,007.52
SUB TOTAL 2 / 247,107,970.56 / 2,808,045.12
ADD 7.5% FOR PHYSICAL CONTINGENCIES / 18,533,097.79 / 210,603.38
SUB TOTAL 3 / 265,641,068.35 / 3,018,648.50
ADD 7.5% FOR PRICE CONTINGENCIES / 19,923,080.13 / 226,398.64
SUB TOTAL 4 / 285,564,148.47 / 3,245,047.14
ADD 9% CONSULTANCY COST FOR DESIGN, TENDER DOCUMENT PREPERATION AND SUPERVISION / 25,700,773.36 / 292,054.24
GRAND TOTAL FOR BUSIA WATER SUPPLY SYSTEM REHABILITATION WORKS / 311,264,921.84 / 3,537,101.38
*1 Euro = 88 Kshs (Jan 2006)
Details of the proposed rehabilitation measures and costs for the water supply system are given in Section 10 of this report.
E4.2Sanitation System
The rehabilitation works necessary to bring the existing sanitation system to its design capacity are summarized in Table E2:
Table E2 - Proposed Rehabilitation Measures for Busia Sanitation SystemDESCRIPTION / AMOUNT (KShs) / AMOUNT* (EURO'S)
1 / Rehabilitation of Sewage Treatment Works / 10,912,000.00 / 124,000.00
2 / Rehabilitation of Sewer Network, including extension of sewers to high density development areas and low income high population density areas / 37,530,952.38 / 426,488.10
3 / Miscellaneous – On-Plot sanitation and Hygiene campaigns, tools for operation and maintenance and laboratory equipment, etc. / 5,980,000.00 / 67,954.55
SUB TOTAL 1 / 54,422,952.38 / 618,442.64
ADD 20% FOR PRELIMINARIES AND GENERAL ITEMS / 10,884,590.48 / 123,688.53
SUB TOTAL 2 / 65,307,542.86 / 742,131.17
ADD 7.5% FOR PHYSICAL CONTINGENCIES / 4,898,065.71 / 55,659.84
SUB TOTAL 3 / 70,205,608.57 / 797,791.01
ADD 7.5% FOR PRICE CONTINGENCIES / 5,265,420.64 / 59,834.33
SUB TOTAL 4 / 75,471,029.21 / 857,625.33
ADD 9% CONSULTANCY COST FOR DESIGN, TENDER DOCUMENT PREPERATION AND SUPERVISION / 6,792,392.63 / 77,186.28
GRAND TOTAL FOR BUSIA SANITATION SYSTEM REHABILITATION WORKS / 82,263,421.84 / 934,811.61
*1 Euro = 88 Kshs (Jan 2006)
Details of the proposed rehabilitation measures and costs for the sanitation system are given in Section 11 of this report.
E5Proposed Expansion Measures and Costs
E5.1Water Supply System
Economic comparisons of two alternativeschemes for expansion of the water supply system to meet the long term (Year 2025) water demand have been carried out to determine the most viable scheme based on capital investments, energy costs, operation and maintenance costs, operation and maintenance capacity of the water service providers and environmental impacts of the proposed measures.
Details of the alternative water supply schemes considered are given in Section 12 of this report. A brief description of each scheme is given below:
E5.1.1Alternative Scheme 1 – Gravity Scheme from MalakisiRiver
This scheme will involve constructing a run of river intake on River Malakisi at 1420m amsl near Namangofulo Trading Center, 10km North of Malakisi Town.Raw Water can be gravitated to the proposed treatment works site at 1380m amsl. Treated water can also be gravitated to storage tanks located in BusiaMunicipality at 1220m amsl. From the Storage Tanks treated water can be gravitated into the distribution network.
The capital cost of Alternative Scheme 1 is estimated to be Kshs 1,446,592,564.06 (Euro 16,438,551.86).
E5.1.2Alternative Scheme 2 – Pumping Scheme from Existing Intake on SioRiver
This scheme would be based on augmentation of the present water supply system serving
BusiaMunicipality. The source of water supply would be the existing intake on SioRiver. The scheme would involve pumping of both raw and treated water.
The capital cost of Alternative Scheme 2 is estimated to be Kshs 717,446,029.15 (Euro 8,663,649.03).
E5.1.3Economic Comparison of the Alternative Water Supply Schemes
In order to identify and select the most economical water supply scheme, an economic analysis has been carried out for the alternative schemes studied. A discounted cash flow analysis has been carried out for each scheme over the 20 year project period up to year 2025.
The opportunity cost of capital (discount rate) has been assumed to be 12 %, considered by many donor agencies to be the appropriate rate with regard to the financial evaluation of projects providing basic needs in Kenya such as water supply and sewerage services. However, alternative rates have been applied where sensitivity factors ask for a widened judgement, particularly with regard to the determination of dynamic unit costs
A comparison of total costs over the 20 year period for the 2 alternative schemes is given in Table E3.
TABLE E.3 Total Costs Over 20 Year Period – Present Value at 12% Discount Rate
Scheme 1 (Gravity Scheme from MalakisiRiver)(Kshs) / Scheme 2 (Pumping Scheme from existing SioRiver Intake)
(Kshs)
A / Capital Cost / 1,446,592,564.06 / 717,446,029.15
B / Recurrent Costs
Maintenance / 108,956,876.04 / 62,634,977.85
Pumps & Motors Renewal after 10 years / 974,677.38 / 9,748,014.47
Chemical Costs / 96,190,972.13 / 96,190,972.13
Electricity Charges / 31,147,904.18 / 514,004,724.24
Staff Costs / 187,411,702.99 / 196,672,080.17
SUB TOTAL / 1,871,274,696.77 / 1,596,696,798.01
C / Indirect Costs (20%) / 374,254,939.35 / 319,339,359.60
TOTAL COSTS (Kshs) / 2,245,529,636.12 / 1,916,036,157.62
TOTAL COSTS (Euro) / 25,517,382.23 / 21,773,138.15
Details of theeconomic analysis of the alternative water supply schemes, including the costs considered in the analysis are given in Section 12 of this report.
E5.1.4Recommended Alternative
Alternative Scheme 2, Pumping Scheme from the Existing Sio River Intake, which is based on augmentation of the existing scheme, works out to be the most economical both on the basis of initial capital cost and 20 year Discounted Cash Flow Analysis for capital and maintenance costs
Therefore, it is recommended that Alternative Scheme 2, Pumping Scheme from the Existing Sio River Intake, be adopted.
E5.2Sanitation System
The existing Busia Sanitation System is presently underutilized, mainly due to the undersupply of water to the Municipality. With the proposed increase in water supply to the Municipality, expansion of the Sanitation System will be necessary.
It is proposed to expand the Sewerage System to meet the expected year 2025 sewage flow of approximately 5,000m3/d. The expansion works are proposed to be carried out in 2 phases, Phase I and II, in accordance with the Town’s expected development trends and population growth pattern. The Phase I works will be executed between 2007-9 while the Phase II works will be undertaken in 2015.
Briefly the proposed Sanitation System expansion works will include:
1)Phase I Works (Year 2007-9)
- Sewage Treatment Works – 1nr Sewage Treatment Works, consisting of Waste Stabilisation Pond Systems to be located south east of the Town. It will have a design capacity of 5,000m3/d.
Sewage treatment at the existing Treatment Works will be abandoned and operations transferred to the new Treatment Works.
- Sewage Pumping Station at Angoloto, with a design capacity of 700m3/d.It will pump wastewater collected from part of the area north of the Kisumu-Busia Road to a gravity trunk sewer along the Kisumu-Busia Road leading to the Treatment Works.
- Sewers – approximate total length 6km
2)Phase II Works (Year 2015)
- Sewage Pumping Station at Mawero, with a design capacity of 500m3/d. It will pump wastewater collected from the area along the Busia-Nambale Road to a gravity trunk sewer leading to the Treatment Works.
- Sewers – approximate total length 4km
The capital cost for the expansion of the Sanitation System is estimated to be Kshs 339,235,686.00 (Euro 3,854,950.98).
Details of the proposed expansion measures and costs for the sanitation system are given in Section 13 of this report.
E6water and sanitation service providers
Presently the Busia Water Supply System is being managed by the District Water Office of Ministry of Water and Irrigation. The Lake Victoria North Water Service Board (LVNWSB)is involved in co-ordination of all activities in the Interim Period prior to handing over of the system to a Water Service Provider.
The Sewerage System for BusiaTown is being managed by Busia Municipal Council.
LVNWSB has appointed the Western Water and Sanitation Service Company Ltd. as the water and sanitation service provider for KakamegaTown. The company has been registered and the appointment of Directors is presently in progress.
E7financial analysis
Given the undeniable overall advantages efficient and reliable water supply and sewerage servicesprovide not only for the population but for the region as a whole, in combination with additional social and environmental benefits to the area together with new impetus for commercial and industrial activities in the region, the recommended improved and enlarged watersupply and sewerage services must be regarded as indispensable in the long run. In Particularhealth aspects could become an extra pushing criteria in the near future to accelerate economic development in the region with large potential for long term sustainability.
The financial analysis indicates that the proposed project may be recommended for financing, particularly if the authorities concerned, together with the private operator agree on sound managerial (optimised tariff structure) and operational standards and an optimised tariff structure. If combined with the introduction of additional revenue generation activities (services), the financial viability of the utility would be sustainable throughout forthcoming operations. This, however, may include the increase of water tariffs, particularly for a growing commercial sector with possibly much lesser price increases for less well-off private households.
The detailed financial analysis is given in Section 14 of this report.
CES/GFA/MIBP JV i