Tuesday, December 31, 2013

Water authorities lose Sh112bn


Permanent secretary in the ministry of Water, Eng Bashir Mrindoko, displays a book during the launch of the water utilities performance review report 2012/13 in Dar es Salaam yesterday. Left is the chairman of the Energy and Water Utilities Regulatory Authority (Ewura), Eng. Simon Sayore. PHOTO | VENANCE NESTORY 
By Fariji Msonsa ,The Citizen Reporter

In Summary
Adding that “most of water authorities in the country have not been able to produce and meet the demand of their customers.”



Dar es Salaam. In the 2012/13 financial year, regional water authorities and the Dar es Salaam Water and Sewerage Corporation (Dawasco)) collected 89 per cent of revenue from their sales, on average, a report says.

However, in the same year the water authorities lost more than Sh112 billion to water leakages and water theft, equivalent to 44 per cent of the key resource that it produces.

Speaking at the presentation of the fifth performance report for water authorities countrywide, Energy and Water Utilities Regulatory Authority (Ewura) director general Haruna Masebu, said revenue collection and water loss remained major challenges.

He said though Mwanza Region did well in terms of revenue collections, where according to the report it surpased 100 per cent, Songea, Tabora and Dawasco ranked low.

On the other hand, the Ewura boss said though water production in the country was improving, about 50 per cent of it got lost before it reached consumers.

An average of 44 per cent of water was lost through leakages and theft, while Dawasco alone lost 55.5 per cent of its water, yet the managements have not strategised to limit the big loss.
“Water production on average has increased to 53 per cent compared to demand, yet 44 per cent of it is lost because of unfavorable infrastructure with leakages. But also some is lost due to theft,” said Mr Masebu.

Adding that “most of water authorities in the country have not been able to produce and meet the demand of their customers.”

According to the report, water loss is allowed up to 20 per cent limit. If the producers and supplies were able to maintain the agreed limit, they would have added at least Sh51 billion to their revenues, and Dawasco alone would have attracted Sh37 billion to its earnings.

On the other hand, Mr Masebu said the water sector needed a big investment, noting that it was time the Public-Private Partnership (PPP) came into play.

“Though water production has increased, it does not correspond with the needs. This means more investment is needed. And now private investors should be allowed to improve the sector,” Mr Masebu said.

He also said to reduce revenue loss, water metering should be used where customers will be charged based on consumption. However, in some regions, some of their customers have no meters.

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