Discussion on Papers 2–4

Dr R.M. Bishai (African Development Bank, Abidjan)

The African Development Bank is similar in operation to the World Bank (IBRD) and International Development Association (IDA). Its operation covers the whole of Africa; besides the 50 independent African states, its members include more than 20 non-regional members. The bank loans are basically with 9 .5% interest rate plus 1% statutory commission and 1% commission charge, with repayment periods of 15-20 years. Fund loans are at 1% with repayment over 50 years. Fund loans are the most suitable for water and sewerage in Africa. Unfortunately, fund resources are limited.

The cost of foreign expertise needed for operation and maintenance represents a high financial load on the executing agency – more than US$120,000 per man-year in scarce foreign exchange. An alternative solution should be envisaged.