The proposed variation will benefit both WASCO and CDB by facilitating: (a) a modification in the project management arrangements to be more in line with the thinking of the new management team at WASCO; and (b) the disbursement of the funds in the Agence Française de Développement (AFD) Credit Facility, as per the commitments made under the contract with AFD. AFD staff has reviewed the original loan appraisal report and confirmed the eligibility of the project for AFD financing.