2005 - 2006 - Pinsent Masons Water Yearbook 2012

UGANDA PART 2: COUNTRY ANALYSIS
Long term plans
The Minister for Water, Lands and Environment stated in August 2000 that the Government plans to
provide safe water and sanitation facilities to all Ugandans by 2015. In 2002, 40% of the population
had access to safe water and 30% had access to adequate sanitation. Approximately 63% of the
urban (NWSC) population has access to water services and 8% is connected to sewerage networks.
A sewerage development object has been drawn up by the NWSC in 2005, which will cost €190
million. A suitable funding mechanism is currently being sought.
Privatisation prospects
Private sector involvement is in line with the NWSC statute, No 7 of 1995. The NWSC and politicians
support some degree of privatisation and the current state of legislation is regarded as being
adequate to take this forward. There have been some pilot projects using the private sector for
community management in Jinja and Njeru and private sector involvement in arrears collection. The
World Bank and the ODA have been involved with the NWSC in the development of proposals for the
contracting out of water and sanitation services. The Public Enterprises Reform and Divestiture
(PERD) Statute No.9 of 1993 seeks to reform and divest public enterprises, with asset sales typically
linked to a market listing. To date, the NWSC has yet to be formally included in the asset sale
process. In 2000, the World Bank loaned Uganda US$48.5 million for the Privatisation and Utility
Sector Reform Project. This project is designed to improve the efficiency of utility operations, while
encouraging the privatisation of them where appropriate. In January 2002, Ondeo was awarded an
O&M contract for various O&M services in Kampala. The contract seeks to reduce losses and waste
from the water distribution system, extend water metering, improve the customer data base, billing
system and operate the water supply and sewerage systems in Kampala on an efficient and cost
effective basis. This contract is viewed as a trial for greater PSP.
Eight private water operators responsible for water supply in 25 urban centres in Uganda have formed
the Association of Private Water Operators in Uganda (APWO-Uganda) in 2003. These urban centres
are small towns with populations between 5,000 and 15,000.
Kampala pullout for Suez Ondeo
Suez carried out a two year management contract with NWSC between 2002 and 2004, but decided
not to seek to renew it when it expired in February 2004.
Groundwater
Annual availability (1998) 29.0km 3
Per capita 1,360m 3
Sources:
H.O. Onek & S.M. Kayaga (1997). Water utilities research: NWSC, Uganda. 23 rd WEDC Conference Durban, South Africa,
1997.
W T Muhairwe (2002). Strategies and challenges of improving water and sanitation service delivery – a case of National Water
and Sewerage Corporation, Uganda. Water 21, Africa Energy Forum, London, July 2002.
W T Muhairwe (2005). Performance Improvement Programmes, the case of NWSC – Uganda, Managing Water Supply and
Sanitation in Large Cities and Urban Areas WSP Workshop, 23-24 th February 2005, Karachi, Pakistan
NWSC (2005) Review of Performance for the Period July 2004 – March 2005. NWSC, Kampala, Uganda
201 Pinsent Masons Water Yearbook 2005 – 2006