Evaluation of the institutional development component of the Cairo water II project : the General Organization for Greater Cairo Water Supply

The component, which is being implemented by Black and Veatch International (BVI), aims to strengthen the General Organization for Greater Cairo Water Supply (GOGCWS). Mid-term evaluation covers the period 12/92-6/96. Overall performance of MTSS to date is fair, but has improved in recent months as the project has gained respect and momentum within GOGCWS. Much of this can be credited to a new and supportive Chairman. Recent successful events include start-up of very effective pilot projects, establishment of an excellent training program, and establishment of a Performance Management Unit. Of course, the MTSS contractor team shares in this success. Though recent accomplishments have been impressive, much remains to be done. The lofty vision of the project paper and the sustainable systems and programs specified in the BVI contract will not be reachable during the remaining year of the performance period, nor will they likely be attained within the 2 years remaining in the project. For most efforts, at least 3 more years is believed a minimum support requirement to build sustainability. Personnel and financial systems will take longer. The tariff issue has been a contentious problem for all parties, with USAID rightfully claiming that the Egyptian government has again failed to meet a legal agreement, while GOGCWS and MTSS team members feel they have been asked to deliver on a condition that is not under their control. GOGCWS and MTSS believe that the recent plan accepted by the Governor will be fully implemented within the next month or two. The plan provides for a 28% annual increase for 5 years for water and an increase to 50% for the wastewater surcharge. These have to be ratified by local councils that have the authority to make changes. This sequence of steps poses a risk and requires close USAID monitoring. If the rate increase is accepted, all sides should claim victory and move to the next steps of continuing to improve the major water and wastewater utilities in Cairo. Without further development by each, especially regarding operations and maintenance practices, infrastructure improvements from the $1.2 billion USAID investment will be subject to damage and a shorter lifespan. The project's performance improvement methodology is beginning to gain sufficient momentum to create sustainable change if supported and continued at least throughout the planned PACD of 12/97 and perhaps beyond. This methodology is supported by the commodities program and also frames all pilot activities and training initiatives. It serves to integrate the project and provide a framework for measuring results. (Author abstract)