Findings Infobriefs reports on Good Practice in ongoing operational, economic and sector work carried out by the World Bank and its member governments in the Africa Region. It is published monthly by the Knowledge and Learning Center on behalf of the Region. The views expressed in Findings are those of the author/s and should not be attributed to the World Bank Group.

The Urban Sector Rehabilitation Project ( URSP ) consisted of a large programme of infrastructure rehabilitation works and institutional reform activities covering 8 project towns – Arusha, Iringa, Morogoro, Mbeya, Moshi, Mwanza, Tabora and Tanga. Additional investments in Dodoma and Dar-es-salaam were, in comparison, of limited scope and complexity. The project with a Credit of US$ 141.3 million equivalent was implemented by the government between 1997 and 2004. The project objectives were sustainable economic development and urban poverty alleviation through:

i. rehabilitation of basic infrastructure and expansion into high-priority, underserved areas; and
ii. improvement of urban local government management and financing capacity by (a) strengthening the financial, technical and overall operations of the urban local authorities through training and technical assistance; and (b) encouraging private sector and community involvement in urban services delivery and operation and maintenance.

• The project has rehabilitated roads and drainage works and expanded the service into high-priority underserved areas in the project towns – 102 km of roads were rehabilitated to tarmac standard - the percentage of tarmac road network rehabilitated is 33%, exceeding the planned 21.6%.
• Vehicle operating costs have been reduced, resulting in high economic rates of return; ease of access to roads has improved; and the volume of traffic has been rationalized due to the use of the rehabilitated roads. The number of bus stands increased by 100% - 13 against the targeted 6.
• The willingness of people to pay property tax has significantly increased due to improved transport facilities.
• The percentage of people served with piped water has increased from 56% in 1996 to 86% in 2004; water supply is now available for 24 hrs. in most of the towns and service levels have improved with the number of pipe connections increasing by nearly 100% from about 50,000 in 1996 to about 101,000 in 2004.
• The increased number of customers has resulted in improved revenue in the 8 project towns from about Tshs 2 billion in 1996 to about Tshs 11 billion at the end of 2004, thus improving the prospects for operational sustainability.
• Improved sewerage services has improved sanitation at the city centers, reduced mosquito breeding locations in the residential areas, generated revenue and provided value-for-money service. The planned 311 VIP latrines in 188 schools have all been constructed – in addition, a total of 16 vacuum tankers for emptying latrines and septic tanks (2 for each town ) have been provided.
• The successful completion of the Community Infrastructure program ( CIP ) sub-components , to which community members contributed 5%, has created a sense of ownership and a supportive environment for sustainability.
• Construction of both spine and neighborhood roads increased the value of the land by 100%; property rent has almost doubled in both planned and unplanned settlements in their vicinity.
• Provision of services such as schools, health centers, shopping centers has increased as a result of private sector initiative; there has been a significant increase in the start-up of new income-generation activities; security has been enhanced due to the improved accessibility of the neighbourhoods.
• Through implementation of property valuation, municipal revenues have more than doubled. In 1996, the 8 project towns had a total revenue of Tshs 2100 million – at the end of FY 2003/04, total revenue was Tshs 7,500 million, much higher than the projection at appraisal.
• The financial situation of the Urban Water and Sewerage Authorities ( UWSAs ) has improved substantially. In 1996, the project towns had a total water and sewerage revenue of Tshs 1,800 million – at the end of FY 2003/04, the total revenue was Tshs 10,000 million. As a minimum, all the towns met their operation and maintenance costs; in most cases, they generate surplus revenue for limited expansion works and contribution to counterpart funds.
• Substantial skills transfer has taken place between the Project Support Units and Construction Support Consultancies and counterpart staff. A total of 1,508 persons have benefited from project-related training programs. The training was provided through public and private institutions in the country and the region and has resulted in improved service delivery
• Transparent procedures were put in place to hire the project management team, consultants, contractors and staff on a competitive basis.
• There is a growing awareness regarding the importance of adequate maintenance both at the local government staff level and amongst community members. Municipal workers, through their efficiency, have won respect from the communities; community members are now willing to pay their arrears and current taxes. As a result, municipal revenues have increased on average by more than 200%. This is an important contributor to sustainability.

Lessons learned

• Successful implementation depends on setting realistic development objectives, keeping the project design simple and establishing practical implementation arrangements. The model of a project team guided by a Steering Committee proved successful. The organizational structure set up proved effective with the Project Manager reporting directly to the Permanent Secretary, President’s Office, Regional Administration and Local Government, and helped achieve a shorter decision-making time. In addition, the setting-up of Project Support Units ( PSUs) in each project town, comprising consultants supervising major works and seconded municipal staff, proved effective in transferring skills in contract preparation, tendering and management of contracts.
• Creation of autonomous Urban Water and Sewerage Authorities ( UWSA ) has proven to be an effective institutional arrangement for service delivery. This has been demonstrated by the total transformation of the performance of the UWSAs in the 8 project towns and in Dodoma.
• The quality of work and improved services alter public perception and attitudes. Beneficiary perception of municipal workers, government and the Bank has changed for the better. Sequencing, through initially implementing small works with significant benefits, gained community support.
• Making community contribution a condition of construction commencement could lead to delays. In the case of the CIP in Dar-es-salaam, the Municipal Councils paid the difference to ensure timely commencement of work.
• Effective conflict management minimizes cost and implementation delays. The conflict resolution skills acquired by project staff contributed significantly to this process.

This infobrief has been excerpted from Implementation Completion Report 32225. For more information, e-mail Solomon Alemu : Salemu@worldbank.org