Preparatory study for the antananarivo drinking water supply project - Madagascar
Context
Context
The European Investment Bank (EIB) has decided to carry out a preparatory study for the Antananarivo drinking water supply project (AEP Grand Tana), which aims to improve the "production" and "distribution" components of the conurbation's supply system and serve an additional 800 000 inhabitants. This project is justified by the saturation of the existing system, whose service rate is close to 60%, and which is experiencing significant physical and commercial losses. A similar project was to be developed in 2008, but the socio-political events of 2009 had hampered its implementation.
Objective
As part of the preparation of the Antananarivo water supply project, the objectives of the mission are :
- To enable the EIB to appraise the loan to JIRAMA, Madagascar's national water and electricity company, in accordance with its economic, environmental, and social requirements
- To ensure the conformity of the environmental and social impact assessment (ESIA) of the project and its economic and financial sustainability
- To update the tariff study dating from 2005
Our contribution
The ICEA team carried out the following activities :
- Description and justification of the Grand Tana Water Supply Project :
- Review of existing technical and feasibility studies
- Description of the initial condition of the project area
- Analysis of the institutional and regulatory framework of the project
- Financial analysis of the project: determination of investment costs, calculation of operating costs and revenues, identification of different sources of financing, evaluation of project profitability and financial viability, sensitivity analysis.
- Conducting a household survey on consumption, capacity, and willingness to pay for water services
- Update of the tariff study :
- Evaluation of the current tariff grid
- Assessment of service demand and costs
- Proposal for a water pricing system
- Regulatory instruments governing the sale of water
Our experience in supporting the appraisal of water supply projects financed by donors, particularly on economic and financial issues, and our recognized expertise in drinking water pricing have enabled us to assess the financial sustainability of the investment and the conditions for the financial equilibrium of the sector.
Need advice on your project ?
Espelia supports local authorities, public stakeholders and their partners in the design, management and transformation of local public policies. A consulting firm committed to serving the public interest, Espelia mobilises strategic, legal, financial and operational expertise to help territories build sustainable and resilient solutions.
