2005 - 2006 - Pinsent Masons Water Yearbook 2012

UGANDA PART 2: COUNTRY ANALYSIS
Uganda
Economics (2003)
GDP per capita US$250
GDP per capita (PPP) US$1,340
GDP in Agriculture 32%
GDP in Industry 21%
GDP in Services 46%
The NWSC
The National Water and Sewerage Corporation (NWSC) are responsible for water provision to
Uganda’s main urban areas. It was formed in 1972, for the provision of urban water and sewerage
services. Having started off in Kampala, Jinja and Entebbe, NWSC has extended its services to cover
Masaka, Mbarara, Fort Portal, Kasese, Lira, Gulu, Tororo and Mbale. Water and sanitation service
provision in rural areas, and smaller urban centres is run by the Government’s Directorate of Water
Development, which also oversees the overall management of Uganda’s water resources.
Under the President, Idi Amin, water was regarded as free for all Ugandans. There were no formal
measures to recover water fees until 1987, nor an effective charging system. NWSC therefore relied
on government subsidies, which in most cases have been inadequate. In consequence, operation
and maintenance work and capital spending have been minimal except where directly supported by
donor agencies. The water supply systems in the urban centres operated at less than 10% of
capacity, providing services for about two hours a day by 1985. Subscribers thus had to purchase
untreated water from vendors.
Population
2003 (million) 25.3
2015 (million) 35.9
Urbanisation in 2003 15%
Urbanisation by 2015 15%
In urban agglomerations, 2015 0%
Commercialising the NWSC
In 1987, the Ugandan Government liberalised the economy. The NWSC was expected to strengthen
measures for cost recovery, and become fully self-financing in its operations. With international credit
guaranteed by the Government (but lent to NWSC at commercial interest rates), NWSC rehabilitated
water and sewerage systems in nine major towns. Kampala had its water treatment works capacity
expanded to meet the demand up to 1998. By 1997, service coverage in the area served by NWSC
had improved to about 50%. In Kampala, an attempt had been made to improve revenue collection
by privatising that department in late 1997. H.P Gauff, a German firm, was contracted to manage the
Kampala Revenue Improvement Project (KRIP), but KRIP has been hampered by lack of
administrative support.
Paid for water increased from 3-5% in the mid-eighties to 30% in 1993 and levelled off at 40% for the
next three years. The collection of bills ranged between 60% and 100%. In consequence, since
1993, arrears have built up by an average of some USh5 billion per annum. Revenues increased
from USh5.5 billion in 1992 to USh21.5 billion in 1996 and operational expenditure rose from USh5.0
billion to USh19.5 billion, with NWSC attaining an operating profit in three of those five years. These
were interim measures, since they did not take into account the NWSC’s debt, which, is charged at
the full rate of interest.
Urban data
Served by piped water 60%
Access to sewerage 96%
With sewage treatment 0%
199 Pinsent Masons Water Yearbook 2005 – 2006