2005 - 2006 - Pinsent Masons Water Yearbook 2012

UGANDA PART 2: COUNTRY ANALYSIS
Reforming the NWSC
In 1998, NWSC lost USh4200 million, due to the cost of servicing its accumulated debt. The NWSC
has seen seven phased performance enhancement programmes since William Muhairwe took over as
Managing Director in November 1998.
Reform programme
Programme Duration
100 Days Feb 1999 – May 1999
SEREP I Aug 1999 – Jan 2000
SEREP II Mar 2000 – Aug 2000
GoU Contract I Sep 2000 – Nov 2003
GoU Contract II Dec 2003 –
Ndombolo ya Solo, the initial improvement programme addresses five areas: Bulk water and
sewerage services, water distribution, revenues, cost reduction and customer care. Subsequent
programmes have addressed management efficiency and operational delivery. The second
Government of Uganda contract (GoU) has emphasised the internal delegation of management
responsibilities, with rewards for performance against service targets for each of NSWC’s cities.
Programme implementation
1997 1999 2001 2004
UFW* – Kampala 60% 53% 39% 38%
UFW* – others 44% 37% 28% 21%
Meter coverage 70% 80% 89% 93%
Connections pa 4,560 5,052 6,840 14,000
Debt age (days) 414 451 278 278
Staff/1000 connections 40 22 13 10
Water connections 47,412 53,824 65,021 100,475
Break even rate 3/12 5/12 10/12 12/12
* - Unaccounted for water
NWSC profits rose by 60%, from USh4.3 billion ($2.5 million) in 2001 to USh12.3 billion ($8 million) in
2004, on the basis of increased water demand and network efficiency work. Revenues increased
from Us21 billion in 1998 to Us42.6 billion in 2004. By the end of March 2005, there were 112,618
metered accounts and a total of 115,873 accounts, with an average of 2,000 new connections per
month, partly due to a simplified customer connection procedure.
Tariffs were not increased between 1994 and 2004. The NWSC increased water tariffs by 10%, from
UGS10 (€0.0048) to UGS11 (€0.0053) per jerrycan (20 litres) in August 2004, equivalent to €0.27 per
m 3 . This is part of a programme to replace water vending with direct access to standpipes, as
vendors have been selling water on to people at €2.40 per m 3 .
Litres/capita/day 1998 2004
Production capacity 197 219
Actual production 123 152
Domestic sales 60 110
Customers living within 50 metres from the NWSC main water pipe are to be connected free of
charge, along with paying their monthly water bills directly to the corporation. A connection fee of
UGS 50,000 (€ 23.90) is payable by customers living further from the pipe.
Freshwater
Annual availability (1998) 39.0km 3
Per capita 3,158m 3
Annual withdrawal (1990) 0.2km 3
Domestic 32%
Industrial 8%
Agriculture 60%
200 Pinsent Masons Water Yearbook 2005 – 2006