DRAFT BD 2013-XX Piedras Negras WW CAP Proposal REVD (Eng).

Transcription

DRAFT BOARD DOCUMENT BD 2014-##
CERTIFICATION AND FINANCING PROPOSAL
WASTEWATER SYSTEM REHABILITATION PROJECT
PIEDRAS NEGRAS, COAHUILA
Submitted: May 2, 2014
CAP PROGRAM, PIEDRAS NEGRAS, COAH
CONTENTS
EXECUTIVE SUMMARY
2
1. ELIGIBILITY
4
2. CERTIFICATION CRITERIA
2.1
2.2
2.3
Technical Criteria
2.1.1. Project Description
4
2.1.2. Technical Feasibility
8
2.1.3. Land Acquisition and Right-of-Way Requirements
9
2.1.4. Management and Operations
9
Environmental Criteria
2.2.1. Compliance with Applicable Environmental Laws and Regulations
10
2.2.2. Environmental Effects / Impacts
10
Financial Criteria
2.3.1. Uses and Sources of Funds
12
2.3.2. Compliance with CAP Program Criteria
13
2.3.3. Conclusion
13
3. PUBLIC ACCESS TO INFORMATION
3.1
Public Consultation
14
3.2
Outreach activities
14
ANNEXES
A. Results Matrix
18
B. Proposed Grant Terms and Conditions
20
MAY 2, 2014
1
EXECUTIVE SUMMARY
Project:
The proposed project consists of the rehabilitation of wastewater
collection infrastructure, including repairs to two sections of the Rio
Bravo Collector, replacement of a gravity main sewer collector
along the Arroyo El Soldado, repairs to Lift Station No. 4, and the
replacement of damaged manhole covers in Piedras Negras,
Coahuila (the “Project”).
Project Objective:
The purpose of the Project is to eliminate untreated wastewater
discharges in the Rio Grande by rehabilitating wastewater
infrastructure, contributing to the reduction of water pollution and
the risk of waterborne diseases.
Expected Project
Outcomes:
The Project is expected to generate environmental and human
health benefits related to the following Project outcomes:

Eliminate an estimated 2.3 million gallons per day (mgd) or
100 liters per second (lps) of untreated wastewater
overflows.1

Contribute to the safe and sanitary operation of the
wastewater collection system.
Population benefitted:
65,000 residents of Piedras Negras, Coahuila.2
Project Sponsor:
Sistema Municipal de Agua y Saneamiento de Piedras Negras,
Coahuila (SIMAS).
Project Cost:
$3,033,375 pesos (US$242,670).3
NADB Grant:
Up to US$250,000 from NADB's Community Assistance Program
(CAP), to cover up to 90% of the project cost in pesos.4
1
Source: SIMAS.
Source: Ibid.
3
Unless otherwise noted, all U.S. dollar figures are quoted at an exchange rate of $12.50 pesos per dollar.
4
Since the project costs are in pesos, the Bank is requesting a dollar amount that will allow for possible fluctuations in
the exchange rate.
2
2
MAY 2, 2014
Uses & Sources of
Funds:
Uses
Construction*
TOTAL
Sources
Amount
Amount
(USD)
(MXP)
$ 242,670
$ 242,670
Amount
$3,033,375
$3,033,375
Amount
(USD)
SIMAS
NADB CAP Grant
TOTAL
$ 24,260
218,410
$ 242,670
(MXP)
$303,250
2,730,125
$3,033,375
*Includes costs related to construction and value-added tax (VAT).
MAY 2, 2014
3
%
100.0
100.0
%
10.0
90.0
100.0
1.
ELIGIBILITY
Project Type
The project falls within the eligible sector of wastewater collection and treatment.
Project Location
The Project is located in the community of Piedras Negras, in the state of Coahuila de Zaragoza,
and is adjacent to the U.S.-Mexico border. The Project is in the border region defined as within
100 kilometers (62.5 miles) of the U.S.-Mexico International border.
Project Sponsor and Local Authority
The Project sponsor is the local water and wastewater utility, Sistema Municipal de Agua y
Saneamiento de Piedras Negras (SIMAS or the “Sponsor"). The legal instrument that
demonstrates the Sponsor's legal authority was published in the Official Journal of the State of
Coahuila de Zaragoza on August 31, 1993. SIMAS has the legal authority to build, rehabilitate,
expand, manage, operate, preserve and maintain water and wastewater systems in Piedras
Negras, Coahuila.
2.
CERTIFICATION CRITERIA
2.1. TECHNICAL CRITERIA
2.1.1 Project Description
Geographic Location
The Project is located in Piedras Negras, a community situated in the northern part of the state
of Coahuila, along the Rio Grande and across from the city of Eagle Pass, Texas. Figure 1 shows
the approximate location of the Project.
4
MAY 2, 2014
Figure 1
PROJECT LOCATION MAP
Community Profile
As reported in the last census taken by Mexico's national statistical institute, INEGI, the city of
Piedras Negras had a population of 151,970 residents in 2010, and projections indicate that the
current population may be nearly 156,500 residents.5 The region is characterized by a wide
range of economic activities, including industrial manufacturing, mining, trade, and services.
According to INEGI, the economically active population in Piedras Negras in 2010 was
approximately 59,400 residents. 6 Average household income in Piedras Negras was estimated at
US$7,779/year in 2000, which was lower than the average for the Mexican border, which was
estimated at US$11,905/year.7
The status of public services in Piedras Negras is described in the following table.
5
Source: Population projections developed by Mexico’s national population council, Consejo Nacional de Populación
(CONAPO).
6
Source: INEGI, 2010 Population and Housing Census.
7
Source: INEGI, 2000 Population and Housing Census.
MAY 2, 2014
5
Table 1
BASIC PUBLIC SERVICES AND INFRASTRUCTURE*
Water
Coverage
99.4%
Supply source
Rio Grande River and Escondido River
Number of hookups
49,073
Wastewater Collection
Coverage
97.8%
Number of connections
46,052
Wastewater Treatment
Coverage**
100%
Treatment facilities
Process: Activated sludge process
Capacity: 520 liters per second (11.9 million gallons a
day)
Solid Waste
Collection coverage
100%
Final disposal
Sanitary landfill
Street Paving
Coverage
92%
* Source: SIMAS, 2013.
**Calculated based on the percentage of collected wastewater discharges treated at the existing treatment
facility.
Local Wastewater System
The local wastewater collection system in Piedras Negras provides 98% coverage. The system
consists of a network of sewer lines, subcollectors, drains, outfalls, and four lift stations.
Currently, the local wastewater collection system serves an estimated 46,052 connections.8
The city has a wastewater treatment plant that is operated by the company AREMA under a 20year concession agreement. The wastewater treatment plant has an installed capacity of 520
liters per second (lps) or 11.9 million gallons a day (mgd). Treated wastewater is used in the
thermoelectric processes of the power plants of the Federal Electricity Commission (CFE)
located downstream from the treatment facility.9
The Rio Bravo Collector conveys wastewater to the treatment plant and is approximately 6,810
meters (22,342 ft.) long. In June 2013, heavy rainfall caused severe damage to three sections of
the collector, interrupting wastewater conveyance to the treatment plant. As a result,
approximately 100 lps (2.3 mgd) of untreated wastewater was discharged directly into the Rio
8
9
Source: SIMAS.
Source: Ibid.
6
MAY 2, 2014
Grande. Additionally, 154 manholes were damaged and require repairs to ensure the proper
operation of the system.
In September 2013, SIMAS completed a technical evaluation and prepared the final designs for
repairing several sections of the Rio Bravo Collector and ancillary works. The proposed works
were considered in the preliminary proposal for the implementation of actions to mitigate the
damage caused by the heavy rains, under the provisions of the Natural Disaster Relief Fund
(FONDEN); however, due to the limited amount of funding, the works were not implemented
with resources from this fund.
The implementation of this Project will eliminate direct raw sewage discharges into the Rio
Grande and will ensure the proper use and maintenance of the wastewater collection
infrastructure in the community.
Project Scope and Design
The Project includes the following components:
a) Replacement of the Rio Bravo Collector in the Campo Venados section and within the
Escalante site.
b) Replacement of the gravity main sewer collector at the Arroyo El Soldado to repair the
connection at the Santa Maria subdivision.
c) Repairs in Lift Station No. 4, including desilting of the wet well, the replacement of the
perimeter fence and rehabilitation of the access road to the lift station.
d) Repairs to 154 manhole frames and covers located throughout the city.
Figure 2 shows the general layout of the Project components.
MAY 2, 2014
7
Figure 2
PROJECT LAYOUT
Cárcamo 4
Marginal Collector
Construction permits will be the responsibility of SIMAS and are considered a construction task.
The utility has already initiated this process. Table 2 shows the proposed project
implementation schedule for the pending Project milestones.
Table 2
PROJECT MILESTONES
Key Milestones
Status
rd
Initiation of procurement
Anticipated: 3 quarter of 2014
Construction period
Six months
2.1.2. Technical Feasibility
Design Criteria
The final design for the Project was developed in accordance with the technical specifications of
the Water, Wastewater Collection and Treatment Manual developed by the Technical Section of
Mexico's National Water Commission (CONAGUA). CONAGUA performed a technical assessment
to verify compliance with the technical guidelines and regulations applicable to the proposed
projects and approved the final designs.10
10
Official Document No. B00.E.21.0.2-3050/2013, issued by CONAGUA on November 19, 2013, and Official Document
No. B00.E.21.0.2.-3121/2013, issued by CONAGUA on November 26, 2013.
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MAY 2, 2014
Selected Technology
The Project to rehabilitate the Rio Bravo Collector will be carried out on two sections of the
existing wastewater collection infrastructure. Repairs to the collector sections will be
implemented in accordance with the diameters and slopes of previously installed lines, ensuring
the continuity of the system's hydraulic conditions. The material selected for the proposed
Project is PVC, the same as the existing pipe, which has proven to be reliable. The Sponsor also
took into consideration the availability of materials, capital costs, operation and maintenance
requirements, and green building practices.
For replacement of the manhole frames and covers, the Sponsor has proposed installing frames
and covers made of high-density polyethylene. The selected material offers acceptable
durability and allows for reliable operation. Additionally, the Project includes repairing damage
to manholes caused by flooding.
2.1.3. Land Acquisition and Right-of-Way Requirements
All the construction tasks of the proposed Project will take place within existing municipal rightsof-way. No additional land or rights-of-way acquisition is anticipated.
SIMAS has initiated the process to identify and obtain necessary permits from the local
Department of Public Works. A response from the municipal government is still pending.
Construction permits will be obtained prior to the disbursement of grant funds.
2.1.4. Management and Operations
The management and operation of the proposed Project will be the responsibility of the local
water utility, SIMAS, which has sufficient resources and staff available for these purposes.
SIMAS, as the Project Sponsor, and the State Water Commission, will provide procurement and
construction supervision during Project implementation.
SIMAS has an Operation and Maintenance manual that includes the primary tasks necessary to
ensure proper operation of the rehabilitated infrastructure. Additionally, the City has
implemented Municipal Wastewater System Discharge Rules and Regulations that allow it to
regulate discharges to the system and optimize its operation.
SIMAS serves approximately 49,073 water connections and 46,052 sewer connections, as well as
treats 100% of the wastewater collected by the sanitary sewer system.
Operation and maintenance costs are not anticipated to increase due to the implementation of
the Project. SIMAS has consistently managed a sufficient annual operating budget to address
normal operation and maintenance activities for the wastewater collection infrastructure,
including funds to support the grant match requirement for the rehabilitation of the Project
components. The Sponsor will be required to demonstrate that it has sufficient funds and an
adequate accounting structure as a condition for receiving the CAP grant.
MAY 2, 2014
9
2.2. ENVIRONMENTAL CRITERIA
2.2.1. Compliance with Applicable Environmental Laws and Regulations
Applicable Laws and Regulations
In accordance with the regulations of the Coahuila State Ministry of Environment (SEMA), on
April, 1, 2014, SEMA issued Official Letter No. SEMA 509/2014 indicating that the Project for the
community of Piedras Negras does not require an environmental impact assessment or
authorization (MIA).
Since the Project will be constructed within the existing infrastructure alignment, no
consultation with Mexico's National Institute of Anthropology and History (INAH) is required. No
cultural or historical resources are expected to be disturbed.
Environmental Studies and Compliance Actions
As indicated in the official letter from SEMA, no environmental studies are required for this
Project.
Pending Environmental Tasks and Clearances
There are no pending environmental tasks or authorizations.
Compliance Documents
As indicated in Official Letter No. SEMA 509/2014 issued by SEMA on April 1, 2014, no formal
environmental authorization (MIA) is required for the Project.
2.2.2. Environmental Effects/Impacts
Existing Conditions and Project Impact – Environmental
In June 2013, Piedras Negras experienced uncharacteristically heavy rains that caused flooding
throughout the city and significantly damaged the existing wastewater collection infrastructure.
Three sections of the Rio Bravo Collector collapsed and caused direct discharges of raw sewage
into the Rio Grande. As a result of the floods, the frames and covers of manholes located
throughout the city also suffered substantial damage. This situation triggered additional
deterioration of the wastewater collection system.
The purpose of the Project is to eliminate untreated wastewater discharges by rehabilitating the
wastewater collection infrastructure, contributing to the reduction of water pollution and the
risk of waterborne diseases.
10
MAY 2, 2014
Environmental benefits expected as a result of the implementation of this Project include:

Eliminate an estimated 100 lps (2.3 mgd) of untreated wastewater overflows;11 and

Contribute to the safe and sanitary operation of the wastewater collection system.
The improvements to the wastewater system infrastructure will ensure reliable service and
eliminate the risks associated with exposure to untreated wastewater due to direct sewage
discharges. The availability of adequate wastewater collection infrastructure protects the health
of residents and prevents the pollution of natural resources, locally and downstream. The
environmental impact resulting from Project implementation will be positive overall, given that
the Project will help prevent raw wastewater overflows and discharges.
Mitigation of Risks
Only minor environmental impacts are anticipated from the implementation of the Project,
provided that the tasks are carried out in accordance with best management practices. Potential
impacts that may be present during the construction phase include:

Airborne dust emissions;

Gas emissions from construction machinery; and

Temporary roadway blockages and the presence of workers in the area.
Mitigation measures that will be implemented are as follows:

Application of treated wastewater to reduce airborne dust emissions;

Vehicle tune ups to reduce emissions; and

Placement of warning signs to prevent potentially hazardous situations.
Natural Resource Conservation
The Project contributes to the conservation of natural resources by reducing the risks of water
pollution and soil contamination.
No Action Alternative
The no-action alternative was not considered viable, since failing to rehabilitate the wastewater
collection system would result in ongoing sewage overflows, which pose a significant hazard for
the environment and health of local residents, as well as for communities and residents
downstream.
Existing Conditions and Project Impact – Human Health
Waterborne diseases are caused by pathogenic microorganisms that are directly transmitted as
a result of inadequate wastewater disposal practices and unsafe water supplies. An individual
may become ill after drinking water that has been contaminated with these organisms, eating
11
Source: SIMAS.
MAY 2, 2014
11
uncooked foods that have been in contact with contaminated water, or through poor hygiene
habits that contribute to the dissemination of diseases by direct or indirect human contact.
SIMAS asked Coahuila Health Services for statistics related to waterborne diseases in Piedras
Negras. This agency reported that, according to the National Health System, Helminthiasis and
Intestinal Amebiasis were the second and third leading cause of disease during 2013.
There is a risk of exposure to untreated wastewater from sewage spills, which increases the
vulnerability of area residents to waterborne diseases. The infrastructure improvements to be
implemented under this Project will reduce this risk and prevent potential health threats.
According to the World Health Organization (WHO), access to safe water and sanitation
facilities, as well as better hygiene practices, can reduce ascariasis‐related morbidity by 29% and
diarrhea‐related morbidity by 32%.12
Transboundary Impacts
The Project will specifically address an unsafe and unsanitary transboundary condition caused
by the discharge of untreated wastewater into the Rio Grande River, a shared binational water
body. Additionally, due to the proximity of Piedras Negras to Eagle Pass, Texas, there are
frequent border crossings between the two communities; therefore, the environmental and
health conditions of Piedras Negras may affect the residents of Eagle Pass.
The Sponsor presented the Project to the Mexican Section of the International Boundary and
Water Commission (CILA), who reviewed the Project information and issued Official Letter No.
CILA/AC/111-14, dated April 15, 2014, expressing no objection to the implementation of the
Project tasks.
No negative transboundary effects are expected.
2.3. FINANCIAL CRITERIA
2.3.1. Uses and Sources of Funds
The total estimated cost of the Project is $3,033,375 pesos. The Project Sponsor requested a
grant for $2,730,125 pesos from NADB through its Community Assistance Program (CAP) to
complete the financing of the Project. Table 4 presents a breakdown of total Project costs, as
well as the sources of funds.
12
Source: WHO: Water, Sanitation, and Hygiene Links to Health: Facts and Figures – updated November 2004"
(http://www.who.int/water_sanitation_health/publications/facts2004/es/index.html).
12
MAY 2, 2014
Table 3
PROJECT COSTS AND SOURCES OF FUNDS*
Uses
Construction**
TOTAL
Amount
Amount
(USD)
(MXP)
Sources
$ 242,670
$ 242,670
Amount
SIMAS
NADB CAP Grant
TOTAL
$ 24,260
218,410
$ 242,670
(USD)
$3,033,375
$3,033,375
Amount
(MXP)
$303,250
2,730,125
$3,033,375
%
100.0
100.0
%
10.0
90.0
100.0
* Exchange rate of $12.50 pesos to the dollar.
**Includes costs related to construction and value-added tax (VAT).
Since the Project costs will be paid in pesos, the Bank is proposing that the Board approve a CAP
grant for up to US$250,000, to cover any possible variation in the dollar amount based on
fluctuations in the exchange rate. At no time will the CAP grant exceed 90% of the total project
cost in pesos.
2.3.2 Compliance with CAP Program Criteria
The Project complies with all CAP criteria. It is located within the U.S.‐Mexico border region
served by BECC and NADB, is being sponsored by a public-sector entity and is in an
environmental sector eligible for NADB financing. Additionally, as a wastewater project, it is
considered a priority under the provisions of the CAP program. As shown in the above table, the
Project Sponsor has agreed to use its own equity to cover 10% of the project cost, which is the
minimum required under the program.
The Project Sponsor is ready to initiate bidding for construction once funding has been
approved. Upon completion of the Project, an estimated 65,000 residents will directly benefit
from improved wastewater collection and treatment services and the reduced risk of exposure
to sewage spills.
2.3.3. Conclusion
For the above reasons, NADB proposes providing a CAP grant for up to US$250,000 to SIMAS for
the construction of the Project in Piedras Negras, Coahuila.
MAY 2, 2014
13
3.
PUBLIC ACCESS TO PROJECT INFORMATION
3.1. PUBLIC CONSULTATION
BECC published the draft certification and financing proposal for a 14-day public comment
period beginning April 11, 2014. The following Project documents are available for public
review:

Final Design of the Project to Repair Damage to the Rio Bravo Marginal Collector in the
Familia Escalante site, Campo Venados, and Arroyo El Soldado Junction in the City of
Piedras Negras, Coahuila, which was developed by SIMAS in 2013.

Final design developed by SIMAS in 2013 to replace and reinstall 154 high-density
polyethylene manhole frames in the city of Piedras Negras, Coahuila.

Final Design to desilt and clean Lift Station No. 4, replace the perimeter fence, and
rehabilitate the access road to the lift station.

Official Letter No. SEMA 509/2014, issued by SEMA on April 1, 2014, confirming that no
formal environmental authorization is required for the Project.

Official Document No. B00.E.21.0.2.-3050/2013 issued by CONAGUA on November 19,
2013, validating the final design for the improvements to Lift Station No. 4 and the
replacement of 154 high-density polyethylene manhole frames and covers.

Official Document No. B00.E.21.0.2.-3121/2013 issued by CONAGUA on November 26,
2013, validating the final design for the repairs to the Rio Bravo Collector.

Official Document No. CEAS-DG-DT/0039/14 issued by CEAS on January 24, 2014,
validating the Project.

Official Letter No. CILA/AC 111/14 dated April 15, 2014, expressing no objection to the
implementation of the Project.
The public comment period ended on April 25th. Two comments were received in support of the
Project: one from a resident of Eagle Pass, Texas, and the other from the State Ministry of
Environment in support of the project.
3.2. OUTREACH ACTIVITIES
As a regular business practice, SIMAS reports to its Board of Directors and requests approval on
projects financed by federal programs, the state government, the municipal government and
other sources of funding. These actions are approved by the Board members who represent
various sectors of the Piedras Negras community, including the National Chamber of Processing
Industries (CANACINTRA), the Association of Notaries, Chamber of Commerce, the Maquiladora
14
MAY 2, 2014
Industry, the Association of Customs Brokers, the Rotary Club and the Association of Civil
Engineers.13 The Board has been informed of the actions proposed under the Project.
BECC conducted a media search to identify potential public opinion about the Project. The
articles reported on the need to implement the works, emphasizing the negative environmental
impacts caused by the discharge of untreated wastewater into the Rio Grande, as well as the
steps taken by the municipal and state governments to fund these works. No opposition to the
Project was detected in the media search.
References to the Project were found on the websites listed below:
13

Zocalo Saltillo (July 3, 2013) “Analizan fondos de Nadbank para reconstrucción”
(NADBank funds for reconstruction work discussed). The article focused on the analysis
of the damage caused by the flood and the availability of funding from NADB.
http://www.zocalo.com.mx/seccion/articulo/analizan-fondos-de-nadbank-parareconstruccion-1372822210

Zocalo Saltillo (July 10, 2013) “Acción inmediata” (Immediate Action). The article
focused on the work carried out in hydraulic networks damaged by heavy rains.
http://www.zocalo.com.mx/seccion/opinion-articulo/accion-inmediata-1373430400

Zocalo Saltillo (July 10, 2013) “” Invertirán 17 mdp en obra hidráulica” (17 million pesos
to be invested in water works). The article focused on the work carried out in hydraulic
networks damaged by heavy rains.
http://www.zocalo.com.mx/seccion/articulo/invertiran-17-mdp-en-obra-hidraulica1373436213

Zocalo Saltillo (October 18, 2013) “Se reúne Óscar López con Nadbank y Cocef” (Oscar
Lopez meets with NADBank and BECC). The article reports that the Mayor of Piedras
Negras met with Bank and BECC officials to discuss environmental infrastructure
projects. http://www.zocalo.com.mx/seccion/articulo/se-reune-oscar-lopez-connadbank-y-cocef-1382068112

Zocalo Saltillo (October 18, 2013) “Buscarán hoy fondos de Cocef y Nadbank” (Funding
from BECC and NADBank will be sought today). The article focused on accessing grant
funds from NADB. http://www.zocalo.com.mx/seccion/articulo/buscaran-hoy-fondosde-cocef-y-nadbank-1372740341

Zocalo Saltillo (March 24, 2014) “Presentan resultados en proyectos de Cocef”(BECC
project results presented). The article focused on the results and scope of the projects
currently being worked by the BECC.
http://www.zocalo.com.mx/seccion/articulo/presentan-resultados-en-proyectos-decocef-1395723825
Cámara Nacional de la Industria de la Transformación (CACINTRA).
MAY 2, 2014
15

Piedras Negras website (March 24, 2014) “Analizan avances de proyectos para el
desarrollo de Piedras Negras” ( Progress on projects for development of Piedras Negras
discussed). The article focused on the results and scope of the projects currently being
worked by the BECC.http://www.piedrasnegras.gob.mx/2014/03/analizan-avances-deproyectos-para-el-desarrollo-de-piedras-negras/.
16
MAY 2, 2014
ANNEXES
17
MAY 2, 2014
ANNEX A
RESULTS MATRIX
Project Objective:
Eliminate untreated wastewater discharges by rehabilitating the wastewater collection infrastructure, contributing to the reduction of water
pollution and the risk of waterborne diseases.
Results Measurement
Indicators and Targets
Baseline Value
Measurement Methodology
Outcomes: Access to, use of, and satisfaction with goods and services provided, building evidence of the achievement of the project objective. These
should be directly attributable to the project and should describe an improvement in existing conditions related, whenever possible, to environmental and
human health, financial, and sustainable development.
1 Eliminate untreated or inadequately
treated wastewater discharges.
(Protection of natural resources)
Reduce uncollected wastewater discharges
(Target = 2.3 mgd)
*Current WWTP capacity is sufficient to treat the
w astew ater collected by the WWCS.
[2014]
2.3 mgd
(uncollected
discharges)
Reviewed by BECC at project close-out.
Measurement supported by available
information provided by project sponsor.
3 Financial self-sustainability
Change in annual operation and maintenance
budget
Reviewed by NADB at project close-out.
information from the sponsor including a
comparison of O&M budgets - pre- and
post-project implementation.
4 Strengthen institutional capacity
Full compliance with all applicable laws, rules Non-compliance Reviewed by BECC at project closeout.
and regulations
(discharges
without
information by project sponsor of
treatment)
regulatory compliance.
Outputs: Goods and services that the project will deliver
Technical:*
Wastewater Collector
Rehabilitation of WW Collector lines
Manholes
Improvements to Lift Station No. 4,
Desilting Wet Well at Lift Station No. 4
Access road rehabilitation
Replacement of the perimeter fence
Replacement of manhole frames/covers
Replacement of manhole frames and covers.
145 m
7
106 m3
527 m2
90 m
154
*subject to construction implementation results.
Financial:
Net cash
>= US$0
Implementation
Inputs and Activities:
Technical:
NADB Estimated Implementation Activities
Procurement process
Construction
Project close-out
Third quarter 2014
6 months from NTP
One year after construction completion
18
MAY 2, 2014
Financial:
Inputs:
SIMAS Piedras Negras
NADB - CAP Grant
US$ 24,260
US$ 218,410
Activities:
Execution of Grant Agreement NADB /
Utility
Compliance with NADB's procurement
policies and procedures
NADB Auditing - covenants compliance
review
MAY 2, 2014
19
ANNEX B
PROPOSED CAP TERMS AND CONDITIONS
Project:
Wastewater System Rehabilitation Project
Sponsor:
Sistema Municipal de Agua y Saneamiento de Piedras Negras, Coahuila
(SIMAS)
Grant Recipient:
SIMAS
Grant Source:
North American Development Bank (NADB) through the Community
Assistance Program (CAP)
Project Cost:
$3,033,375 pesos (US$242,670)
GRANT TERMS
Grant Amount:
Up to $250,000 (the “Grant”)
Grant Uses:
Grant proceeds can be applied to the construction costs related to
wastewater infrastructure for the municipality of Piedras Negras,
Coahuila.
Currency:
U.S. dollars.
Grant Proceeds Flow:
Disbursements of the CAP Grant will be made directly to contractors
and consultants designated by the Recipient against invoices, receipts
or other written documentation certified by Recipient’s Project
Manager and Construction Supervisor, as applicable in each case.
Grant Disbursements:
In accordance with NADB disbursement policies and procedures.
Disbursement Period:
In accordance with the disbursement schedule to be agreed upon with
the Recipient.
CAP Project Time
Period:
The CAP Project time period shall be from the date of signature of the
Grant Agreement to the date of one year following the date of the last
disbursement of the Grant.
20
MAY 2, 2014
GRANT CONDITIONS
Procurement:
All contracts funded from the CAP Grant shall be awarded in
accordance with NADB’s procurement policies and procedures.
Disbursement:
Prior to the first disbursement of the CAP Grant:
a) Recipient must provide, in terms satisfactory to NADB, the
procurement, construction and disbursement schedules.
b) The contract(s) relating to the first disbursement shall be in
place, must have been bid according to NADB’s procurement
policies and procedures; and it’s (their) award must have been
submitted for NADB’s no-objection.
c) The following documents must have been submitted to NADB,
in form and substance satisfactory to NADB:
1. An executed legal opinion from Recipient’s chief legal
officer indicating that the Grant Agreement has come
into full force and effect and is valid and binding on
Recipient;
2. A letter of authorized signatories for submission of
disbursement requests and any other Project
authorizations;
3. Copies of all permits and licenses necessary for the
construction and operation of the Project; and
4. Documents providing NADB with confirmation of the
Project’s funding from Recipient.
Change Orders:
MAY 2, 2014
In the case of all change orders for any individual Project component
or contract, NADB assumes no commitment to fund such change
orders from the CAP Grant. However, Recipient may submit them to
NADB for approval, so that the corresponding payment may be made,
if applicable. In the event that NADB does not approve payment of
the change orders, Recipient agrees to fund them from its own
resources.
21
COVENANTS
Continued Provision of
Service:
Recipient shall continue to construct, develop, own, operate, maintain,
repair and improve the Project, and provide wastewater services to
the municipality of Piedras Negras, Coahuila.
Project Completion:
Recipient shall cover any cost, exceeding the CAP Grant, to guarantee
completion of the Project.
NADB Supervisor:
NADB may hire a Project Supervisor to review the execution of the
Project during the life of the Grant. The tasks to be performed by the
Supervisor will be consistent with NADB’s project supervision policy.
If NADB, based on its own or through its Supervisor’s review,
determines that the Grant proceeds have been disbursed for ineligible
expenditures, or actions have been taken that are not in accordance
with the terms of the CAP Grant Agreement, NADB will suspend future
disbursements of its funds until the situation has been remedied.
Compliance with Laws
and Regulations:
Recipient must operate the Project in compliance with all the laws,
rules, regulations, orders and directives applicable to the Project or
Recipient, enacted by any legislative, executive, administrative or
judicial body having lawful jurisdiction (whether federal, state or local).
Sale, Lease or
Encumbrance:
Recipient may not sell, lease or encumber all or any part of the Project
without the prior written authorization of NADB.
Operation Reports:
1. Recipient will deliver to NADB:
a) Quarterly Project construction performance reports within
fifteen (15) days of the reporting period, detailing the status
of construction as compared with the Project construction
schedule. The final performance report shall be due ninety
(90) days after completion of the Project.
b) Promptly upon the occurrence of an event that is material to
the financial condition or operating effectiveness of the
Project, notice of such event and its expected impact on the
Project.
c) Notice of any litigation or proceeding filed against the
Recipient as well as any anomaly or circumstance which may
compromise the operation of the Project.
2. Recipient is required to report deviations from Project budget
plans and request prior approval from NADB for budget plan
revisions.
22
MAY 2, 2014
3. Recipient shall request prior written approval from NADB for the
following:
a) Any change in the scope or the objective of the Project
(even if there is no associated budget revision requiring
prior written approval).
b) Budget revisions that result from changes in the scope or
the objective of the Project.
c) Any change of key Project related personnel specified in the
Agreement.
Audits of Project
Operations:
Recipient shall deliver copies of all required audits to NADB. NADB
reserves the right to conduct spot financial and technical audits of the
Project.
EVENTS OF GRANT SUSPENSION AND REMEDIES
Events of Suspension :
The following situations shall constitute events of suspension:
a) Any representation or warranty made by the Recipient in the
Grant Agreement between the NADB and the Recipient proves
to have been incorrect or false in any material respect; or
b) The validity of the Grant Agreement, or any material provision
of the Agreement, shall be contested by Recipient, the State of
Coahuila or any governmental authority thereof, or any of the
Grant Agreement shall for any reason be invalid, ineffective or
unenforceable; or
c) Recipient shall default in the due observance or performance of
any of its obligations under this Agreement, which failure
remains unremedied for a period of thirty (30) days from the
date Recipient receives notice of such failure; or
d) Significant adverse changes in the legal and financial position of
the Recipient that endanger its capacity to fulfill its obligations
under the Grant Agreement; or
e) Any change in the charter or bylaws of Recipient that could
prevent it from performing its obligations as agreed under the
Grant Agreement.
MAY 2, 2014
23
Remedies:
Upon occurrence and continuance of an event of suspension, the
NADB may exercise any or all of the following remedies:
a) Refuse to advance any funds to Recipient.
b) Terminate the Grant.
c) Exercise such other rights and remedies as may be available at
law or equity.
Waiver of an Event of
Suspension:
NADB may waive any event of suspension, and such waiver will not
release the Recipient from any of its obligations under the terms of the
Grant Agreement.
Costs Incurred after
Suspension or
Termination:
Costs to Recipient resulting from obligations incurred by Recipient
during a suspension of disbursements or after termination of the Grant
Agreement are not allowable unless NADB expressly authorizes them
in the notice of suspension or termination or subsequently.
Other costs during suspension or after termination that are necessary
and not reasonably avoidable are allowable if paragraphs a) and b)
apply:
a) the costs result from obligations that were properly incurred by
Recipient before the effective date of suspension or
termination, are not in anticipation of it, and, in the case of a
termination, are non-cancellable; and
b) the costs would be allowable if the award were not suspended
or expired normally at the end of the funding period in which
the termination takes effect.
Applicable Law:
To the extent not inconsistent with public international law applicable
to NADB, this Agreement shall be governed by, and construed in
accordance with, the laws of the United Mexican States.
Jurisdiction:
The Recipient and NADB will submit to the jurisdiction of the
competent federal courts in Mexico City, Federal District, Mexico, for
any action or proceeding arising out of, or relating to the Grant, hereby
waiving any other jurisdiction to which they may be entitled by reason
of their present or future address.
EFFECTIVE DATE OF THE PROPOSAL
Effective Date:
The terms and conditions of this Grant proposal will be valid upon
approval by the Board of Directors of NADB.
24
MAY 2, 2014

DRAFT BD 2013-XX Piedras Negras WW CAP Proposal REVD (Eng).

Transcription

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