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cost); parallel cofinancing ffom KfW (US$4.1 million or 11% of total cost) and UNICEF (US$3.6 million or 9% of total cost); and through Goverament counterpart financing (US$2.0 million or 5% of total cost). During negotiations, tbe Goverament gave assurances that it would deposit in an account in a commercial bank in Ouagadougou by January 1, 1996, an initial amount of US$100,000 to meet expenditures under the project. The remaining amount of the Govemment's counterpart contribution would be deposited, ąuarterly in advance, according to a Schedule of payments agreed upon between the Borrower and the Association.

3.56 Recurrent cost imolications. Constmction and eąuipment costs under the project would total US$19.5 million and would be entirely covered under the credit and through cofinancing. Under the revised staffing norms established under the project, existing MSASF personnel would be available to Staff most new or upgraded facilities with the implementation of a successful redeployment plan (para. 3.18). Implementation of this plan will generate considerable cost savings. For example, in the case where the facilities constructed and rehabilitated were to be entirely filled through recruitment of new Staff, the required increase in Staff by 1999 would total approximately 500 at an increased cost per annum in the wagę bill by the last year of the project of CFAF 0.7 billion. This would amount to an increase in personnel costs over the 1992 health sector budget of 13% and an increase over the total MSASF budget of 10%. Assuming successful redeployment, the largest single increase in recurrent costs will be to finance operating costs (residual incremental personnel, operation and maintenance of equipment and vehicles) of upgraded CMAs and newly constructed CSPS. This will amount to US$5.7 million over the life of the project and would be financed by IDA on a declining basis (Annex 3.11). By 1999, the Goverament‘s share will reach CFAF 661 million (US$1.1 million) per annum or an increase over the 1992 MSASF budget of nearly 4%. Finally, purchases of essential, generic drugs will total approximately CFAF 1,740 million (US$3 million) per annum, beginning in the second year of the project, but it is expected that this cost will be largely recovered through user charges.

ATION

IV. PROJECT IMPL

A. Status of Project Prenaration and Readiness

4.1 Detailed project preparation was carried out by the technical Staff of the Directorates concemed, assisted by external agencies where necessary and supported by pre-investment studies financed under the FHP. The PCU provided overall coordination and logistic support. Throughout preparation, discussions were held with other donors, particularly with KfW, UNICEF and the OPEC Fund, to agree on sector strategies and program support. Working papers for all project components have been prepared. Standard designs for the CMAs and the CSPS are available. A procurement Schedule, as well as an outline of an implementation manuał, was reviewed during negotiations. Other documentation, including draft bidding documents for the procurement of goods and services, based on Bank standard bidding documents, was also reviewed during negotiations.

B.

JJLUIł*

Coordination and Management

4.2 Day-to-day management and implementation of each project component would be tbe responsibility of the concemed Directorates of the Ministry of Health as indicated above. Coordination of project activities, administrative and financial matters, monitoring of project implementation and outcomes, and inter-directorate coordination would be the responsibility of the