UWSAs 2008-09 Projects Report [Final]

THE UNITED REPUBLIC OF TANZANIA

MINISTRY OF WATER AND IRRIGATION

PROJECTS IMPLEMENTATION AND MANAGEMENT STATUS

FOR THE URBAN WATER SUPPLY AND SEWERAGE

AUTHORITIES [UWSAs], DISTRICT URBAN WATER

SUPPLY AUTHORITIES [DUWSAs], SMALL TOWNS

AND NATIONAL PROJECTS

FOR THE YEAR 2008/2009

APRIL 2010

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EXECUTIVE SUMMARY The Ministry of Water and Irrigation as according to Section 1.1.22 & 1.1.23 of the above mentioned MoU signed between MoWI and the Water Supply and Sewerage Authorities (WSSAs) is required to prepare and present the annual report on the implementation of Government financed projects including Water Sector Development Programme (WSDP) and Annual Auditing Report at the Annual General Meeting (AGM). This status report namely “Projects Implementation and Management Status for the Urban Water Supply and Sewerage Authorities for the Year 2008/2009” covers the performance of the Utilities during the period compared it with the preceding fiscal year and chart out areas of intervention for better service delivery in the future. There are a total of 20 Water Supply and Sanitation Authorities currently operating in the regional urban centers. The authorities are in the regional centers of Arusha, Dar es Salaam (DAWASA/DAWASCO), Dodoma, Iringa, Mbeya, Morogoro, Moshi, Mtwara, Mwanza, Musoma, Shinyanga, Songea, Tabora, Tanga, Bukoba, Kigoma, Singida, Sumbawanga, Babati and Lindi. These authorities are under the Board of Directors, and are responsible for carrying out of the functions and managing the business and affairs of the authority including tariff setting and budgeting. The above Authorities are graded into three categories A, B, and C as per the Water Supply and Sanitation Act No.12 of 2009, in which they are monitored and supported by the Commercial Water Supply and Sewerage Department (DCWSS) of the MoWI and regulated by the Energy and Water Utilities Regulatory Authority (EWURA). In general, during the year 2008/2009 a number of achievements and challenges were observed while implementing the Water Sector Development Programme in the UWSAs. The achievements include;

(i) Capacity building through the procurement of operational equipment including vehicles, motorcycles, operational equipment, computers and accessories for Dodoma, Morogoro, Tabora, Iringa, Songea, Babati, Lindi, Mtwara, Shinyanga, Singida and Sumbawanga.

(ii) Proceeding with development projects in the regional centers of Mbeya, Morogoro, Songea, Mwanza and the Kahama/Shinyanga water supply project.

(iii) Increasing in the percentage population living in the service area to 83.4% with the

water service at an average of 17.2 hours as compared to 80% at average hours of service of 17.6 reported in 2007/2008.

(iv) The total number of Kiosks increased from 1,571 in the year 2007/2008 to 1,844 in

the year 2008/2009.

(v) Non revenue water or Unaccounted for Water in the year 2008/2009 improved to 37% from 39% and 40% reported in year 2007/2008 and 2006/2007 respectively.

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(vi) Water connections in year 2008/2009 increased to 386,168 from 274,617 and 199,106 reported in year 2007/2008 and 2006/2007 respectively with a metering ratio of 80% compared to 69% in year 2006/2007.

(vii) The Lake Victoria Kahama/Shinyanga water supply project that was completed and

the entity inaugurated on May 2009 is the other achievement. New water connections have been done to 7,500 customers in Shinyanga Municipal and 5,000 in Kahama town by the end of year 2008/2009. However extension of the water supply system to 70 villages along the main pipe in Mwanza and Shinyanga regions and customer connections in Shinyanga municipal and Kahama town is in progress.

(viii) To the date of this report 5 permanent licenses for Dodoma, Mwanza, Tabora,

Dar es Salaam and Tanga urban water authorities were approved and issued by EWURA and other 16 regional urban water supply authorities had to continue with Temporary Licenses.

The amount of funds disbursed under WSDP for UWSAs in the year 2008/2009 for purchase of goods, incremental costs, consultancy and works is Tshs 22,420,758,584. A total amount of Tshs 457,000,000 was disbursed for emergence project in Kigoma UWSA. Table No. 1 below shows disbursement in each UWSA. All Urban Water Supply and Sewerage Authority in accordance with Appendix E & F of the Memorandum of Understanding (MoU) are obliged to evaluate the performance of the Managing Director and to conduct Board of Directors self assessment annually. During the financial year 2008/2009 all UWSAs could not met the required submittion date of 15th September, only seventeen (17) Authorities (Arusha, Iringa, Mbeya, Lindi, Shinyanga, Kigoma, Musoma, Babati, Tanga, Bukoba, Sumbawanga, Dodoma, Morogoro, Songea, Mtwara, Tabora and Mwanza) submitted their evaluation reports. However authority of Moshi performed the evaluation very late and couldn’t submit the reports during the preparation of this report while Singida could not perform the Board and Managing Director’s evaluation for the 20008/2009 financial year. The results on the assessment of the 17 reports submitted from the above mentioned UWSAs on Managing Directors’ and Boards’ evaluation shows that;

(i) The MD quantitative evaluations were good with minimum score of 61% (Tabora) and maximum score of 98.5% (Babati). The qualitative evaluation was good for all UWSA except Kigoma and Tabora which scored average. The Table No. 14 shows areas which the Managing Directors should increase more effort for the future improvement of their performance as recommended by the Board of Directors.

(ii) The self evaluation of the Board of directors ranged between 100% (Babati) and 69% (Kigoma) The Board gave recommendations to the management on a number of issues for future performance improvement. The summary of evaluation results are as shown in Table 14.

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The report also observed the following challenges which require proper attention for the effective progress of the sector;

(i) Long procurement processes in the authorities; delay in disbursement of funds from treasury and Non- availability of competent and qualified staff in the utilities are the main causes for some of the projects to be behind implemetation time schedule. This also led to increase in cost during the implementation of projects.

(ii) Delay of submission of implementation status reports by Utilities; Inconsistence in the report writing formats and Non-availability of reliable data from various sources to enhance preparation of report has been an obstacle for timely available reports; this has been the source of delay in report writing.

(iii) Insufficient time for monitoring and evaluation of physical implementation status of ongoing activities which are under construction this led to unrealistic information reported by utilities.

(iv) The Performance of the credit policy in many of the UWSAs was not impressive. On outstanding total debts that include Energy and Supplier’s bills, Kigoma reported the highest of Tshs 456,571,419.05 followed by Moshi with Tshs 358,326,417.52.

(v) All UWSAs could not submit the Board’s and MD’s evaluation reports to the Ministry on the required time which i.e. before 15th September after the end of the financial year. However, all UWSAs MD’s evaluation report were properly filled and detailed except for Sumbawanga, Mtwara, Iringa and Lindi; while Singida could neither present Board’s self assessment nor MD’s evaluation reports.

(vi) All UWSAs except Arusha, Kigoma, DAWASA and DAWASCO received Qualified Opinion in their Audit Reports for the year 2008/2009. However, reports for Tabora, Musoma, Songea and Sumbawanga they were still under quality review during the preparation of this assessment report.

(vii) The overall percentage expenditure on HIV/AIDS interventions in UWSAs as compared to the total water and sewerage sales is only 0.03%. Tanga UWSA reported the highest expenditure on HIV/AIDS interventions as compared to other utilities. The authority spent TShs 4,670,000/= equivalent to 0.009% proportional to the overall total water sales of TShs 53,187,631,409/= from all UWSAs.

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ABBREVIATIONS AND ACRONYMNS:

AGM: Annual General Meeting AWEC: Annual Water Experts Conference CWSS Commercial Water Supply and Sewerage DAWASA: Dar es Salaam Water and Sewerage Authority DAWASCO Dar es Salaam Water Supply Corporation DCWSS Directorate of Commercial Water Supply and Sanitation DNA Data Not Available DUWSA: District Urban Water Supply and Sewerage EIA: Environmental Impact Assessment EWURA: Energy and Water Utilities Regulatory Authority HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndromme IFRS International Financial Reporting Standards KVA: Kilovolt Ampere KWh: Kilowatt Hour LGAs Local Government Authorities MCC Millenium Challenge Corporation MDs: Managing Directors MDGs Millennium Development Goals MIS Management Information System MKUKUTA Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania MoU: Memorandum of Understanding MoWI: Ministry of Water and Irrigation NGOs: Non Governmental Organizations NPs National Projects OPRAS: Open Performance Review and Appraisal System SECO Swiss Economic Corporation STs Small Towns TAMISEMI Ministry of Regional Administration and Local Government TANESCO: Tanzania Electric Supply Company Limited UfW Unaccounted for Water UN United Nations UWSA: Urban Water Supply And Sewerage Authority WHO: World Health Organization WSDP Water Sector Development Program WSP Water Stabilization Ponds WSSAs: Water Supply and Sanitation Authorities

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Table of Contents EXECUTIVE SUMMARY .................................................................................................. i ABBREVIATIONS AND ACRONYMNS ........................................................................ iv Table of Contents ................................................................................................................ v 1.0 INTRODUCTION ................................................................................................... 1

1.1 Objective of the Assessment ....................................................................................... 1 1.2 Scope of Study ........................................................................................................... 3 1.3 Approach and Methodology ....................................................................................... 3 1.4 Structure of the Report ............................................................................................... 3

2.0 IMPLEMENTATION OF WSDP AND OUTPUTS .............................................. 4

2.1 Overall Achievements ................................................................................................ 4 2.2 Funds Disbursements Status for 2008/2009 ................................................................ 7 2.3 General Status of the Attainment and Outputs ............................................................ 8 2.4 General Progress and Key Outputs ........................................................................... 13 2.5 Challenges and Interventions .................................................................................... 14

3.0 OPERATION AND MAINTENACE SUPPORT OF UWSAs ............................ 16

3.1 Disbursement Trend for Category B and C ............................................................... 16 3.2 Electricity Support.................................................................................................... 16 3.3 Personnel Assistance ................................................................................................ 18

1.3.1 Personnel expenses for category B ......................................................................... 18 1.3.2 Personnel expenses for category C ......................................................................... 18

3.4 Other Supports include Quickwins ........................................................................... 18 4.0 MANAGEMENT MATTERS ............................................................................... 21

4.1 Human Resources ..................................................................................................... 21 4.2 HIV Aids Interventions ............................................................................................ 23 4.3 Implementation of MoU for the year 2008 – 2009 ................................................... 24

4.3.1 Performance of the Contract targets ....................................................................... 24 4.3.2 Evaluation of Board and Managing Director for the Year Ended June 2009 ........... 25

4.4 Financial Management Issues ................................................................................... 29 4.4.1 Financial Statements .............................................................................................. 29 4.4.2 Status of Audited Accounts .................................................................................... 29 4.4.3 Compliance to IFRS/IPSAS and Accounting Codes ............................................... 30 4.4.4 Credit Policy and Accounts Payable Status ............................................................ 33

5.0 OBSERVATION AND RECOMMENDATIONS ................................................ 34

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1.0 INTRODUCTION

In every three years the Ministry of Water and Irrigation (MoWI) together with all Regional Urban Water Supply and Sewerage Authorities including DAWASA negotiate and signs a Memorandum of Understanding (MoU). The MoU is for the purpose of regulating all these Utilities whereby the obligations of the two parties are well stipulated as well as targets that have to be met are set accordingly. The current MoU (2008 – 2011) between these parties was signed in January, 2009. This is a tool for monitoring the progress of the Utilities and in this report the performance of each Authority will be evaluated.

The Ministry of Water and Irrigation as according to Section 1.1.22 & 1.1.23 of the above mentioned MoU signed between MoWI and the Water Supply and Sewerage Authorities (WSSAs) is required to prepare and present the annual report on the implementation of Government financed projects including Water Sector Development Programme (WSDP) and Annual Auditing Report at the Annual General Meeting (AGM). This annual meeting is chaired by the Minister responsible for the Water and attended by the Boards and Management of all UWSAs including DAWASA and DAWASCO and it appraise critically the performance of the Utilities for the preceding fiscal year compared with the previous three years trend and chart out areas of intervention for better service delivery in the future. There are a total of 20 Water Supply and Sanitation Authorities currently operating in the regional urban centers. The authorities are in the regional centers of Arusha, Dar es Salaam (DAWASA/DAWASCO), Dodoma, Iringa, Mbeya, Morogoro, Moshi, Mtwara, Mwanza, Musoma, Shinyanga, Songea, Tabora, Tanga, Bukoba, Kigoma, Singida, Sumbawanga, Babati and Lindi. These authorities are under the Board of Directors, and are responsible for carrying out of the functions and managing the business and affairs of the authority including tariff setting and budgeting.

The Authorities are graded into three categories A, B, and C as per Water Supply and Sanitation Act. 2009, in which they are monitored and supported by the Commercial Water Supply and Sewerage Department (DCWSS) of the MoWI and regulated by the Energy and Water Utilities Regulatory Authority (EWURA).

To fulfill the need to realize the performance implementation of the projects and financial auditing of these utilities, this status report “Projects Implementation and Management Status for the Urban Water Supply and Sewerage Authorities for the Year 2008/2009” i.e for all 19 UWSAs, DAWASA and DAWASCO was prepared.

1.1 Objective of the Assessment

The objective of this report is to depict the progress of the Authorities and evaluate the implementation status of the projects, discuss problems/challenges if any and give ways

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forward to solve those challenges. The main objective of the report is to document and depict as accurately as possible the performance of the projects in 20 utilities that were funded by the Government as well as the WSDP. The objective focused among others, the implementation of the obligations agreed in the Memorandum of Understanding [MoU 2008 – 2011] between the MoWI and WSSAs’. To accomplish the assignment effectively the following specific objectives were considered;

1. To assess the status of the Utilities towards the implementation of targets of the

MKUKUTA and Millennium Development Goals.

2. To assess the proportionality and priority of the resources allocation in the implementation of the projects including WSDP based on the existing water supply as well as sewerage infrastructure.

3. To assess the impact of completed and ongoing water supply and sewerage projects to

services provision and analyze the current coverage of each utility.

4. To assess the status of urban water supply and sanitation services for the Peri-Urban and low income areas so as to cope with the Millennium Developments Goals (MDGs).

5. Analysis of the access for the urban water supply and sewerage on the designated

service area.

6. To review and assess audited financial Reports of these Utilities for the financial year 2008/2009 and compare with the two preceding years and propose areas for improvement

7. To review the implementation of medium term strategic plans, future plans and

Business Plans for WSDP implementation

8. To assess, analyze and document the progress of the projects under studies, design and implementation in the utilities. The projects to include;

Water Sector Development Program, and Own Investments in the respective Authorities and the performance trend of

these utilities for the past three years 2006/2007 – 2008/2009.

9. To document end results and impact of the completed projects to the operation services that include production, unaccounted for water, revenue collection, reliability of the service and coverage, water supply and sewerage coverage, etc. etc.

10. To draw conclusion and recommendations for future improvement with respect to technical, financial, commercial, business operations, Implementation of WSDP and services for the urban poor to meet the Millennium Development Goals in the Urban Water and Sewerage Utilities in the Country by year 2015.

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1.2 Scope of Study

The scope of the study is to asses the performance and prepares the respective status report of the implementation of the projects in the Regional and District urban centers, Small Towns and National Projects funded by the Government including WSDP. The study covers areas of factors that impacts the performance realized on the implementation of the Water Sector Development Programme (WSDP) in all 20 Water Supply and Sanitation Authorities (WSSAs’) including DAWASCO and their financial auditing status and the report is named as; “Projects Implementation and Management Status for the Urban Water Supply and Sewerage Authorities for the Year 2008/2009”.

1.3 Approach and Methodology

The mode operandi included review and desk study of Monthly, Quarterly and Annual reports from WSSAs as well as DAWASCO on selected indicators as per WSDP requisites and to realize the performance of the WSDP and Government support in WSSAs’ and assess and comprehend the impact onto the development status of the sector. The approach also includes analysis and interpretation of the respective data and preparation of the report on the observations and matters aroused.

1.4 Structure of the Report This report gives an overview on the status of commercial water supply and sanitation subsector especially the regional urban centers in accomplishing the WSDP. The report at the outset is covered with an introduction that decodes on the purpose, scope and methodology of the assignment, institutional set up of the regional urban water utilities and followed by review on Millennium Development Goals (MDGs), Operation and Maintenance Support, Implementation of MoU, Projects Implementation and Financial Auditing. The report is wrapped up with recommendations and way forward.

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2.0 IMPLEMENTATION OF WSDP AND OUTPUTS

The National Water Policy of 2002 was formulated to ensure that the water sector contributes towards the realization of Development Vision 2025, the MDGs and MKUKUTA targets. The government developed the Water Sector Development Programme (WSDP; 2006-2025), of which its implementation started in 2007/2008 under guidance of the National Water Sector Development Strategy (NDWS). The development objective of the programme is to strengthen sector institutions and improve access to water supply and sanitation services.

The WSDP in the medium term, it focuses in attaining the MDGs, which envisage halving the proportion of people without sustainable access to safe drinking water and basic sanitation; and eradicating extreme poverty and hunger from 1990 to 2015; and in the short term its thrust is to attain the NSGRP (MKUKUTA) targets; increasing service coverage in urban areas from 73% of 2003 to 95% and expanding the sewerage service coverage from 17% in 2003 to 22% by 2015.

In urban populations, the WSDP objective is to improve and sustain the quality and quantity of drinking water and sewerage services. The Directorate of Commercial Water Supply and Sanitation (DCWSS) of the Ministry of Water and Irrigation responsible for the urban water supply and sanitation services aims to increase access to clean and safe water from 74% in 2005 to 95% by 2015 as per MKUKUTA and to 100% by 2025 as per Millennium Development Goals (MDGs). However, sewerage service coverage though slow in its implementation pace is expected to be raised from 17% to at least 22% by 2015 as per the revised MKUKUTA target. The low performance is due to limited investment in the sphere of influence.

2.1 Overall Achievements On implementing the WSDP and in pursuit to the Millennium Development Goals (MDGs), during the year 2008/2009 the Urban Subsector managed to achieve the following;

2.1.1 Management Support for Utilities-large and small (US$31 million): Capacity building

grants to support: A total 2 offices were constructed for Misungwi and Vwawa DUWSAs, 22 Motor vehicles were procured for 11 UWSAs and 10 motor vehicles for selected DUWSAs will be procured and distributed before July 2010, 40 Motor cycles were procured for 10 UWSAs. The purchase also include 120 Motorcycles for (100) DUWSAs/STs/NPs and were handed over to selected DUWSAs. Office equipment /computer sets were procured for 11 UWSAs as planned. As for the case of water meters, a total of 19,654 meters (including bulky water meters) were purchased to 13 UWSAs. Sewer emptier truck and sewer cleaning tools were purchased for Dodoma UWSA only. Other planned activities under this group will be completed within the remaining 2.5 years.

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Consultancy services including designs and preparation of TD is ongoing to the 10 UWSAs of Moshi, Kigoma, Arusha, Shinyanga, Morogoro, Bukoba, Musoma, Tanga, Tabora, Dodoma and in 18 STs/DUWSs. Under WSDP studies in the UWSAs of Songea, Mbeya, Iringa, Mwanza and Musoma including 31 Small Towns and 2 National Projects is expected to start before July, 2010. Studies, designs and preparation of Tender documents for the remaining 69 Small Towns and 3 National Projects is at initial stage of preparation of ToR and advertisement. Supervision consultancies contracts are being carried out in Singida, Babati, Lindi, Mtwara and Sumbawanga as well as in region centers of Mbeya, Iringa and Mwanza. The feasibility study design and preparation of tender documents in 7 towns (Urban Upgrading under EU-ACP water Facilities) is expected to start in April 2010. Total cost of on going consultancy contracts is more than USD 19.033 millions including consultancy services under DAWASA. Under the Lake Victoria Basin water Supply and Sanitation Initiatives (LVWATSAN) which is funded by AFDB and managed by LVWATSAN Committee is expected to be conducted in two phases, the immediate works will be implemented in one year time and long term intervention will follow there after. The Tanzanian towns include Nansio, Geita and Sengerema. 2.1.2 Urban WSS Investments (US$479.9 million): A combination of capital development

grants and/sub-loans to support i) Expansion and WSS services in Dar es Salaam (US$175 million)

Three construction contracts works for Package 2A, 2C and 2E are at competition stage in the following areas: Package 2E - Water supply networks for Kibaha town, Kwa Matiasi, and Kongowe, Visiga Mlandizi areas and Package 2C- Water supply networks for Changanyikeni, Makongo, Ubungo, Kimara Baruti, Temboni, Kwa Msuguri, Stopover and Kimara and Package 2A- Improve Distribution network at Tangibovu, Mbezi Beach, Kunduchi and Tageta areas. Immediate benefit/impact of the contract upon completion is drop of reduced NRV/UFS and availability of water in regular basis. Contracts for Improvement of water production at Lower Ruvu waterworks (MCC) has been advertised (prequalification stage) while preparation of bidding documents for construction of Lower Ruvu duplicate line is at final stage. Tender for NRW is also at final stage of its preparation. Procurement of a consultant for carryout feasibility study, detail design and preparation of tender document for construction of Kidunda dam has signed a contract signed in Feb 2010 Procurement of consultants for supervision of drilling works at Kimbiji/Mpera and ground water assessment study in Mpera/Kimbiji field is under way. Procurement of NRW Part II consultant is under way; the consultant assignment is to do the assessment of water uses and losses and execution of Performance Based Contract to reduce water losses in Dar es Salaam.

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Other projects implemented in DSM include DSM Water Supply and Sanitation Project (BTC) where total cost of the project is € 7.8 mil. ($ 10.2mil), so far study has been completed and test boreholes’ drilling continues. Social studies completed. Construction works will start around August 2010.

ii) Rehabilitation and expansion of WSS Services in 7 Group I for Towns of Bukoba, Kigoma, Babati, Lindi, Mtwara, Musoma, and Sumbawanga.

Construction of the immediate works to improve water supply systems for Sumbawanga, Lindi, Mtwara and Babati is underway and latest completion period is December 2010. Design at final stage for Bukoba, Kigoma, and Musoma. Procurement of contractor is expected to start next financial year.

(iii) Rehabilitation and expansion of WSS services in 2 Group II Towns (US$15.0 million) –

Morogoro and Tabora; Morogoro under MCC: Tender under prequalification stage (advertised) for rehabilitation of Mafiga water treatment plant and construction of new water treatment plant at Mambogo, repair of water tanks and other minor works. The Tariff study report is at completion stage (report will be submitted in February 2010). Tabora under SECO: Contract for installation of Bulk water meter at Igombe station, zone water meter and construction of meter chambers is 50% completed; design for other activities ongoing. Under WSDP both towns are at designs and preparation of tender document stage.

(iv) Rehabilitation and expansion of WSS services in 4 Group III Towns (US$52.5 million) –

Arusha, Dodoma, Moshi and Tanga: Designand preparation of bidding documents under way for Arusha, Moshi and Tanga. Dodoma- under procurement of contractor for construction of water supply and sewerage works. Dodoma–SECO: improvement of installed capacity of Mzakwe is 90% complete. Contract for installation of zone water meter and construction of meter chambers is 50% completed.

(v) Rehabilitation and expansion of WSS services in 6 Group IV Towns (US$21.3 million) – Mbeya, Mwanza, Iringa, Songea, Shinyanga and Singida;

Regional Centres Programme: construction of water supply and sewerage on going for Iringa and Mbeya and Sewerage only in Mwanza city. The latest construction contract will complete in Sept 2011. In Singida, rehabilitation and expansion of water supply works has started in November 2009 and will complete in Sept. 2011. The project of improving customers base in Shinyanga continued in which customer connection works completed and 15,449 customers were connected for both Shinyanga and Kahama. Design for sewerage and water supply expansion at final stage. In Songea procurement of consultant is at contract negotiation stage and the project will cover water supply and sewerage expansion.

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(vi) Quick win in UWSAs: A total of Tshs 893,762,500 were disbursed to the UWSAs of Musoma, Babati, Sumbawanga, Lindi, Bukoba, Singida and Kigoma for implementation of quick win projects including rehabilitation of water supply system, supply of water meters and purchase of office equipment and tools.

(vii) Rehabilitation/Expansion of WSS services in Group Vof Small Towns (US$45.0million) –

These include 93 gazetted townships, 32 un-gazetted small towns and 6 national schemes: construction has completed in September, 2009 at Mwanhuzi where water supply coverage has increased from 4% to 39% (by January 2010) and customer connection is ongoing. Construction works are on going stage at the towns of Misungwi, Utete, Mpwapwa, Bariadi, Bunda, Igunga, Ikwiriri and Kibiti. At Chalinze NP – Package F, H and J are under construction and the latest completion period is Dec 2011 the remaining Package A, B, C, D, E & G under procurement of contractor(s). 6 DUWSAs/STs are under final stages of procurement of contractors (Kibaigwa, Mvomero, Turiani, Gairo, Kilosa and Masasi/Nachingwea). With exceptional of Masasi /Nachingwea, other works in 5 towns are expected to start by May, 2011. Quick wins: Investment made in DUWSAs, Small Towns and all National Projects stands at around USD 29.64 millions through quick win involved rehabilitation of water supply infrastructure (List of DUWSAs/STs and NPs supported through quick win from year 2007 to 2009 is indicated in the attached annex (Appendix I)

2.1.3 Challenge Budget set for purchase capacity building equipment and other investment activities were too low compared to list/quantity of items or activities proposed to be purchased or implemented e.g USD 0.150 mil were budgeted to buy 50,000 meters for DAWASA, and also each ST has a budget of USD 0.45 mil as an investment package while the actual budget after design has gone up several times.

2.2 Funds Disbursements Status for 2008/2009

The amount of funds disbursed under WSDP for UWSAs in the year 2008/2009 for purchase of goods, incremental costs, consultancy and works is Tshs 22,420,758,584. A total amount of Tshs 457,000,000 was disbursed for emergence project in Kigoma UWSA. Table No. 1 below shows disbursement in each UWSA.

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Table No. 1: Disbursement of Funds to UWSAs For fiscal year 2008/2009

UWSA Goods Consultancy Works/Operation and Contracts Incremental Total

Kigoma 0 0 457,000,000 0Mtwara 94,645,833 250,000,000 1,400,000,000 80,000,000Lindi 99,343,221 256,107,651 940,294,560 35,000,000Babati 231,928,425 394,498,295 1,501,456,855 26,200,000Sumbawanga 163,237,734 50,165,802 531,850,445 40,356,000DAWASA 0 0 7,113,830,767 0DAWASCO 0 0 2,300,000,000 0Moshi 0 403,361,514 0 80,000,000Tanga 0 283,822,500 0 20,000,000Tabora 0 515,449,977 115,200,000 80,000,000Shinyanga 128,368,334 515,545,417 823,703,630 80,000,000Arusha 0 200,000,000 0 38,000,000Dodoma 453,395,750 100,000,000 1,500,000,000 0Mbeya 0 0 0 80,000,000Iringa 119,396,667 0 0 80,000,000Singida 153,304,177 0Bukoba 151,025,763 0 0 0Musoma 184,872,600 0 0 0Morogoro 0 0 0 80,000,000Songea 119,396,667 0 0 0Mwanza 150,000,000 0 0 0Total 2,048,915,171 2,968,951,156 16,683,336,257 719,556,000 22,420,758,584

2.3 General Status of the Attainment and Outputs

MKUKUTA and MDGs focuses on increased access to clean, affordable and safe water, sanitation, decent shelter and a safe and sustainable environment. To implement the WSDP four main outcome indicators namely; the proportion of the population with access to piped water, other improved or protected water as their main drinking water source (within 30 minutes’ time), the proportion of households using conventional sewer system and percentage households with access to other improved sanitation facilities. Implementation of WSDP during the reporting year as compared to the previous years brings about a number of achievements including improvements on water accessibility.

The overall water production in 2008/2009 for all urban water utilities including Dar es Salaam in which DAWASCO is operating, has increased to 202.34 Million m3 compared to 197.8 Million m3 reported in 2007/2008. Water demand has also increased from 309.17 Million m3

reported in 2007/2008 to 318.78 Million m3 recorded in 2008/2009. Overall water production reported during the review period of 202.34 Million m3 is 64% proportion of the estimated current water demand of 318.78 Million m3 for all regional urban centers. The Production and demand trend shown in Table No. 2 and Chart No. I below.

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Table No. 2: Water Demand, Production and Revenue Trend

UWSA Water demand 2007/08

Water demand 2008/09

Water production

2007/08

Water production

2008/09

Revenue Collection 2007/08

Revenue Collection 2008/09

Arusha 19,364,000 19,727,000 15,586,000 14,415,990 3,710,574,586 3,968,262,903 Babati 1,464,000 1,468,000 1,110,000 1,106,929 193,877,595 423,703,773 Bukoba 3,286,000 3,286,000 2,260,000 2,252,450 794,208,794 661,063,223 DAWASCO 164,250,000 164,250,000 92,651,729 91,770,221 20,910,572,081 22,117,566,212 Dodoma 9,200,000 16,425,000 7,945,000 9,143,363 2,735,619,000 3,202,315,966 Iringa 5,124,000 5,124,000 4,255,000 4,193,365 1,333,373,245 1,478,948,152 Kigoma 9,435,000 9,435,000 2,993,000 2,947,686 411,179,560 448,336,325 Lindi 1,800,000 1,800,000 468,000 462,824 171,511,591 183,810,609 Mbeya 11,520,000 12,783,080 10,360,000 11,162,273 2,091,611,264 2,951,473,984 Morogoro 10,950,000 10,950,000 8,739,000 8,780,000 2,812,829,451 3,384,121,197 Moshi 9,150,000 9,350,000 8,445,000 8,773,903 2,177,837,000 3,166,838,763 Mtwara 4,380,000 4,560,000 1,944,000 1,887,250 809,646,304 906,372,494 Musoma 8,640,000 8,640,000 3,861,000 3,872,290 982,232,638 997,891,167 Mwanza 19,220,000 19,220,000 13,832,000 18,692,488 3,927,996,628 5,421,866,632 Shinyanga 5,309,000 5,390,000 3,254,000 3,275,101 797,519,666 1,058,824,317 Singida 2,617,000 2,624,050 1,490,000 1,705,280 454,813,276 416,210,229 Songea 3,062,000 3,150,000 2,285,000 2,159,648 536,617,871 642,580,600 Sumbawanga 2,920,000 2,920,000 1,391,000 1,795,921 275,034,770 317,800,240 Tabora 8,330,000 8,330,000 4,788,000 4,603,253 1,452,924,722 1,279,762,810 Tanga 9,150,000 9,350,000 8,946,000 9,335,130 3,126,890,000 3,969,175,908 TOTAL 309,171,000 318,782,130 196,603,729 202,335,365 49,706,870,042 56,996,925,504

Chart No. I: Water Demand and Production

-

50

100

150

200

250

300

350

2007/2008 2008/2009

Mill

ions

Water Demand Water Production

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Non revenue water or Unaccounted for Water in the year 2008/2009 improved to 37% from 39% and 40% reported in year 2007/2008 and 2006/2007 respectively. This improvement has been due to the efforts made by most of the Authorities to control non revenue water and increased domestic metering. The percentage population living in the service area stands at 83.4% with the water service at an average of 17.2 hours as compared to 80% at average hours of service of 17.6 reported in 2007/2008. Table No. 4 below shows the trend in detail for each individual UWSA.

Water connections in year 2008/2009 increased to 386,168 from 274,617 and 199,106 reported in year 2007/2008 and 2006/2007 respectively with a metering ratio of 80% compared to 69% in year 2006/2007. The three years trend on unaccounted for water and metering ratio is shown on Table No. 3 and Chart No. 2 below.

Table No. 3: Three Years Trend on UfW and Metering Ratio

Arusha 33.3 22 26 100 100 100Babati 45.6 46 44 40 54 89Bukoba 59.4 53 52 64 69 89DAWASCO 56 55 57 45 55 67Dodoma 30 38 44 100 100 100Iringa 48 46 42 72 83 86Kigoma 45 37 34 42 43 43Lindi 62 46 40 26 56 53Mbeya 34 32 30 63 72 76Morogoro 33 27 24 80 82 92Moshi 31 29 32 100 100 100Mtwara 34 33 27 85 86 89Musoma 52.7 45 39 50 51 51Mwanza 36 37 44 94 96 96Shinyanga 42.6 38 36 72 85 71Singida 35 43 35 44 46 72Songea 33 35 40 72 76 80Sumbawanga 44 43 44 51 53 59Tabora 28 28 27 79 79 80Tanga 27 27 25 100 100 100

Average 40 38 37 69 74 80

Metering Ratio 2008/09

Provider Name

UfW 2006/07 UfW 2007/08

UfW 2008/09 Metering Ratio 2006/07

Metering Ratio 2007/08

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Chart No. 2: Comparison on % Population Served, UfW and Metering Ratio

The Chart No. I above illustrate a positive progress in implementing the MKUKUTA and MDGs. The percentage of population served and metering ratio continues to increase while the unaccounted for water is decreasing.

The total number of Kiosks increased from 1,571 in the year 2007/2008 to 1,844 in the year 2008/2009. Sewer connections increased but improved at a slow speed. The percentage coverage increased to 18% from 17% reported in 2007/2008. The total number of sewer connections in year 2008/2009 continued to increase and reached 35,645 as compared to 30,474 connections recorded in 2007/2008. Public awareness on sanitation issues in most of the authorities continued to be conducted and this has been the cause of such an increase during the 2008/2009.

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Table No. 4: Three Years Trend on Population Served and Hours of Service

UWSA

% P

opul

atio

n

Livi

ng in

the

Serv

ice

area

2007

/200

8

% P

opul

atio

n

Livi

ng in

the

Serv

ice

area

2008

/200

9

% P

opul

atio

n

Serv

ed w

ith W

ater

2007

/200

8

% P

opul

atio

n

Serv

ed w

ith W

ater

2008

/200

9

Ave

rage

Hou

rs

2007

/200

8

Ave

rage

Hou

rs

2008

/200

9

Arusha 97 98 87 84 24 18.5Babati 63 63 52 57 12 12Bukoba 72 99 45 73 24 23DAWASCO 68 82 64 67 9 9Dodoma 87 87 62 46 20 20Iringa 92 92 77 73 23 22Kigoma 88 88 88 74 7 7Lindi 62 62 37 38 7 6Mbeya 73 90 60 90 22 23Morogoro 90 94 78 48 21 20Moshi 97 97 67 67 23 24Mtwara 83 86 62 83 10 10Musoma 75 78 63 60 20 22Mwanza 79 74 32 45 22 22Shinyanga 60 60 66 45 13 15Singida 84 75 58 75 5 6Songea 71 71 52 58 24 24Sumbawanga 78 86 50 63 22 16Tabora 86 87 67 58 20 20Tanga 99 99 96 82 24 24

TOTAL 80.1 83.4 63.2 64.3 17.6 17.2 The proportion of population living within the area with water network expressed as percentage: -

Is obtained by dividing the population living within 200 meters of water network by the total population living in the service area multiplied by 100.

The proportion of population served with water (expressed as a percentage): - Is obtained by dividing the population served (household connections and public stand posts) by the total population living in the service areas multiplied by 100.

The WSDP proposed outcome and output indicators to assess the progress of the implementation of water supply and sanitation services in urban areas so as to achieve MKUKUTA and MDGs targets. Table No. 5a and Table No. 5b below demonstrate a three years trend on households water supply connections, number of kiosks, percentage households using piped sources of water, number of households with sewerage connections and percentage of households using conventional sewer system. In general, the table illustrates a positive and progressive trend.

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Table No. 5a: Three Year Trend on WSDP Outcome and Output Indicators

The objective of Urban Water Supply and Sewerage component is to increase the access to clean and safe water across mainland Tanzania from the 2006 baseline of 73% to 90% target by 2012. According to data available, the UWSAs in the 19 regional centers had increased this access level to 84% by January 2010 while in Dar es Salaam the service coverage remains at 68% due to severe limitations in water production capacity. Water supply coverage in district centers, small towns, and in areas covered by national projects is estimated at 53%. While the 19 UWSAs are on track with improvement in its coverage performance, Dar es Salaam, the small towns, and national schemes are lagging behind in progressing towards achieving the target as shown in the attached Table No. 5b. Table No. 5b: Expected increase in water supply coverage (%) Baseline Dec 2010 Dec 2011 Dec 2012 MKUKUTA

2015 Small Towns 53 54 55 56 57 UWSAs 84 86 88 90 95 Dar es Salaam 68 70 71 72 75

2.4 General Progress and Key Outputs As mentioned above, the sector progress is imbalanced. While the 19 regional utilities show positive developments. However, water demand almost always exceeds water production. Water quality – particularly in small towns is often sup-optimal. Since far more than half of the urban population is served by those entities, both performance and performance monitoring urgently need improvement. Other achievements from the WSDP observed are: -

(i) The average hours of supply for all utilities has almost remained the reasonably high level (17 hours per day) over the past three years.

(ii) The trend on UfW has decreased over the past three years from 41% to 37%. (iii) Number of water connections has increased from 244,901 in July 2009 to 232,554 in

December 2009, with an increase of 12,347 connections against the annual target of 18,800 connections (66.7% achievement).

(iv) Sewerage connections has increased from 16,348 to 18,918 in December 2009 with an increase of 2,570 connections against the annual target of 400 connections due to the significant increase experienced by Dodoma and Morogoro.

Sub-sector

Indicator 2006/2007 2007/2008 2008/2009

Output Outcome Output Outcome Output Outcome

Urban Water Supply and Sewerage

No. of HH connections 219,965 78% 255,169 80.3% 386,168 82.8% No of public water points (kiosks)

1,446 1,571 1,844

No. of HH connected to Sewerage facilities

13,649 17% 30,474 17.6% 35,645 18%

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(v) The Lake Victoria Kahama/Shinyanga water supply project that was completed and the entity inaugurated on May 2009 is the other achievement. New water connections have been done to 7,500 customers in Shinyanga Municipal and 5,000 in Kahama town by the end of year 2008/2009. However extension of the water supply system to 70 villages along the main pipe in Mwanza and Shinyanga regions and customer connections in Shinyanga municipal and Kahama town is in progress.

The above development projects have contributed into the increased population coverage on water supply service. The implementation of the WSDP started in year 2007/2008 wherein the water supply coverage was 80.3% and increased to 84% in December 2009. These projects contributed to an average increase of 3.7% to the access of the entire urban population to have water services at an easy reach, this equals to an increase 167,130 people with water services (2.7% of 6.91 Million people). Also for the utilities to operate effectively, during the year 2008/2009 five permanent licenses for Dodoma, Mwanza, Tabora, Dar es Salaam and Tanga urban water authorities were approved and issued by EWURA and other 16 regional urban water supply authorities had to continue with Temporary Licenses.

2.5 Challenges and Interventions

Existing Water Supply and Sanitation Authorities (WSSAs) have evolved into bodies that are financially autonomous and commercially viable and managed to provide efficient and cost-effective services to all sections of the public in their supply areas. The DCWSS and all the Implementing Agencies expects to provide services to an additional 4.6 million people by 2010 and 15.0 million people by 2025. Despite the brief successes and approaches to the MKUKUTA targets discussed above, the general challenges that were faced by the commercial water supply and sanitation sub-component include:

1. Delay of submission of implementation quarterly status reports and Audit reports by Utilities; Inconsistence in the report writing formats and non-availability of reliable data from various sources to enhance preparation of report has been an obstacle for timely available reports; this has been the source of delay in report writing.

2. Delay in disbursement of funds from DPs and treasury has been a challenge that led to increase in cost during the implementation of projects;

3. Lack of working facilities such as vehicles, computers, printers etc. at various levels of WSDP implementation especially in DUWSAs and Small Towns.

4. Non-availability of competent and qualified staff in STs and NPs utilities that contributes to delay in projects implementation, decision making, poor service delivery and also in reporting.

5. Inadequate monitoring and evaluation of physical implementation status of ongoing activities which are under construction this led to unrealistic information reported by utilities;

Monitoring and evaluation of the projects implementation will be conducted to find short falls; and the Stakeholders should ensure that reports are submitted on time and to the standard so that funds are made available in time to enable timely completion of the planned activities so that the

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MKUKUTA targets should be achieved on time. On other hand there are a number of progressive projects which are expected when completed to increase the proportion coverage by 4 – 5% by end of the year 2010. These projects include;

1. Rehabilitation and expansion of water supply in Singida township,

2. Igunga water supply system ,

3. Improving Water Supply systems in Musoma and Bukoba,

4. Implementation of Chalinze water supply project phase II,

5. Lower Ruvu treatment plant, expansion and construction of 55 km parallel line from Lower Ruvu, Improvement of revenue collection for Dar es salaam Water Supply and distribution network at various areas of Dar es Salaam,

6. On-going projects in Regional Centres Water Project -Phase II - Mwanza, Iringa and Mbeya,

7. On-going projects in Tabora and Dodoma under (SECO),

8. Immediate works to improve water supply systems for the towns of Babati, Sumbawanga, Lindi and Mtwara; And,

9. Quick win projects to various Small Towns

The strategies and projections to attain the MKUKUTA and MDGs targets will concentrate on reducing the non revenue water and increasing the water and sanitaion service coverage. The sub-sector envisage to use all the necessary water management tools and instruments to ensure that the overall UfW in urban area is reduced from the current 37% to below 34% and to increase water supply and sewerage coveraves from 83% and 18% of 2008/2009 to 88% and 20% by end of the year 2010 respectively. This will effectively be achieved owing to;

1. Rehabilitation of old aged water supply system,

2. Metering and Reduction of Non Revenue Water activities, 3. Sensitization of customers to properly usage of water, reporting of leakages and

sanitation issues, and 4. Timely submission of progress reports and emergencies from utilities so as to

have proper records and follow ups.

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3.0 OPERATION AND MAINTENACE SUPPORT OF UWSAs

3.1 Disbursement Trend for Category B and C The government continues to disburse funds to category B and C for supporting the operation and maintenance of UWSAs. The funds disbursed were for payment of electricity and supporting personnel expenses. For the year 2008/2009 the funds disbursed was as given in the Table No. 6.

Table No. 6: Disbursement for category B and C For the Year 2008/2009 UWSA COMPUTERS MOTOR

CYCLES MOTOR VEHICLES

WATER METERS

TOTAL

LINDI 39,756,000 21,029,895 0 37,463,177 98,249,072 BUKOBA 26,836,593 0 0 57,827,840 84,664,433 SINGIDA 35,222,505.35 0 0 111,436,950 146,659,455 BABATI 33,273,410 0 0 59,820,000 93,093,410 SUMBAWANGA 27,618,500 0 0 87,194,655 114,813,155

3.2 Electricity Support The government is providing support in paying costs of electricity to category B and category C UWSAs. The amount paid to electricity is as per MoU signed between the UWSAs and the ministry. The Table No. 7 and Table No. 8 below shows the trend of electricity costs for the three years from 2006/2007 to 2008/2009

Table No. 7: Electricity costs trend for three years category B.

UWSA 2006/2007 2007/2008 2008/2009 1 BUKOBA 105,000,000.00 126,478,800.00 53,845,526.53 2 KIGOMA 106,000,000.00 235,068,000.00 149,359,886.47 3 SINGIDA 54,000,000.00 64,051,080.00 50,495,021.00 4 LINDI 98,816,000.00 46,362,595.00 38,225,010.00 5 BABATI 40,298,880.00 53,896,763.00 34,481,730.00 6 MUSOMA 216,166,000.00 76,034,834.00 21,770,100.00

The trend shows that the support provided to category B is decreasing from year 2007/2008 to 2008/2009. This represent a decrease of an average of 73.%. Chart No. 3 below shows the electricity support disbursed to UWSAs category B.

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Chart No. 3: Electricity cost trend for 3 years

Table No.8: Electricity cost trend for category C

UWSA 2006/2007 2007/2008 2008/2009 1 BABATI 33,920,000 52,451,720.00 41,250,343.73 2 LINDI 40,260,000 43,475,870.00 46,056,972.79

Chart No. 4: Electricity cost trend for category C

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3.3 Personnel Assistance

The personnel expenses constitute a major expenditure component for UWSAs. In the year 2008/2009 amount spent on personnel expenses was 10,074,823,402.94, for all UWSAs except DAWASA and DUWASA whose data were not available compared to TZS 6,938,260,000 in the previous year 2007/08

1.3.1 Personnel expenses for category B

In the year 2008/2009 category “B” UWSAs spent TZS 0.908 billion compared to 1.6 billion in the previous year 2007/08.

Table No. 9: Personnel expenses for category B

Expenses in millions UWSA 2006/07 2007/08 2008/09 SUMBAWANGA 110.34 154 173.6 BUKOBA 194 203 247.44 KIGOMA 150 248 219.72 SINGIDA 171 172 257.5

1.3.2 Personnel expenses for category C

In the year 2008/2009 category “C” UWSAs spent TZS 193.38 million compared to 132.58 million in the previous year 2007/08.

Table No. 10: Personnel expenses for category C

UWSA Expenses in millions 2006/07 2007/08 2008/09

BABATI 48.9 64.8 102.32 LINDI 50.6 67.8 91.07

3.4 Other Supports include Quickwins

The government through Ministry of Water & Irrigation supports various water schemes through its programme called quickwins. The main objective of this program was to implement small projects and schemes which could bring an immediately output. Table No. 11 below shows the funds disbursed for UWSAs.

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Table No. 11: Disbursed funds for supporting UWSAs

Payment to the on going consultant contracts

Authority Description of the work

Amount disbursed Tshs Remarks Consultants.

Moshi Payment to the Consultant for detail Engineering design and preparation of tender documents in Moshi urban

568,961,514

Contract price is Euro 225,320.00

(Phase 1) and Euro 244,450.00 (Phase II). Total Euro 469,770.00

Contract signed in July 2008 with M/s

SEURECA of France in association with

NETWAS Tanzania Ltd.

Payment to the Consultant for detail Engineering design and preparation of tender documents Moshi urban Draft detailed Engineering design report (Invoice No3) Final detailed study report (Invoice No4) Draft preliminary report (Invoice No5) Payment to the Consultant for detailed Engineering design and preparation of tender documents for Moshi, Mwanga

Babati

Payment to the Consultant Belva Consult Limited in association with Sir Fredrick Snow for detail Engineering design and preparation of tender documents for Karatu and Kateshi.

194,498,295 Contract signed in September 2008 with M/s Belva Consult of

Tanzania in association with M/S Sir Frederick Snow & Partners Ltd of

UK Payment to the Consultant for detail Engineering design and preparation of tender documents in Babati urban

Payment to the Consultant for detail Engineering design and preparation of tender documentsfor Improvement of Water Supply in Urkesumet and Kateshi.

196,128,240

Tabora Payment to the Consultant M/s Basler & Hofman Ltd Switzerland in Association with WILALEX Ltd and RWB Ltd for detail Engineering design and preparation of tender documents for Tabora, Sikonge, Urambo and Igunga.

315,449,977 Contract price USD 160,268.00 (Phase 1) na USD 567,270.00 (Phase II)

Basler & Hofmann Ltd of Switzeland in association with Wilalex Consultants and RWB

Tanga Payment to the Consultant Ms Arab Consulting Engineer in association with M-Konsult for work done from January to April, 2009 for detailed Engineering design and preparation of tender documents for Tanga city, Muheza and Pangani townships.

133,822,500 Contract price: Phase I: USDPhase I: USD 873,300.00 and Phase II: USD 761,375

Arab Consulting Engineers in association

with M-Konsult Tanzania Ltd

Payment to the Consultant for detailed Engineering design and preparation of tender documents for Tanga city, Muheza and Pangani townships.

150,000,000

Shinyanga Payment to the Consultant Ms. GIBB AFRICA (KENYA) for detail Engineering design and preparation of tender documents for Shinyanga, Maswa, Kishapu and Ushirombo townships.

225,545,417 Contract price Euro 824,303.78 and TZS 501,338,470 and 430,473.86 USD

GIBB of Kenya in association with Natural Resources Consulting Engineers (USA), Gibb Mauritius (Mauritius), and Service Plan Ltd Tanzania

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Lindi Payment to the Consultant Seureca in association with Netwas Tanzania Ltd invoice no.3 for supervision for Lindi and for detailed Engineering design and preparation of tender documents for K/Masoko.

306,107,651 Contract price: Phase 1A: EURO 265,240 , Phase IB EURO 215,900.00, Phase II -EURO 185,150

M/s SEURECA of France in association

with NETWAS Tanzania Ltd

Mtwara Payment to the Consultant Poyry in association with DCL for Supervision of Water Supply in Mtwara.

150,000,000 Contract price USD 861,875.00

M/s Poyry of Germany and DCL of Tanzania

Payment to the Consultant for detail Engineering design and preparation of tender documents in Mtwara urban

100,000,000

Igunga Payment to the Consultant for supervision of construction works

41,102,540 M/S COWI (T) Consultant Ltd

Arusha Payment to the Consultant for detail Engineering design and preparation of tender documents for Arusha urban and Ngorongoro.

200,000,000 Contract price TZS 1,235,700,000

Contract signed in 13/3/2009 with NORPLAN AS in association with NORPLAN (T) Ltd and Inter-Consult Ltd

Shinyanga Design and supervision of Sewerage System and Water Supply Network Expansion for Shinyanga Municipality and Water Supply of Maswa, Kishapu and Ushirombo

290,000,000 Contract price Euro 824,303.78

and TZS 501,338,470 and 430,473.86 USD

Contract signed in August 2008 with M/s

GIBB of Kenya in association with Natural Resources Consulting

Engineers (USA), Gibb Mauritius (Mauritius), and Service Plan Ltd

Tanzania Dodoma Payment to the Consultant for detail

Engineering design and preparation of tender documents in Dodoma urban

100,000,000

DAWASA Construction Supervision Services for Supply and Installation of the Secondary and Tertiary Water Distribution Networks in Dar es Salaam and construction supervision for water supply works for Ikwiriri and Kibiti small towns

Contract price USD 599,150

Contract signed in December 2008 with M/s Don Consult Ltd (TZ) in association with Norplan TZ.

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4.0 MANAGEMENT MATTERS

4.1 Human Resources

A total of 2,864 personnel of various professions, qualifications and fields have been employed in all regional urban water supply and sanitation authorities in the country. They include permanent and temporary staff. According to the reports from the Maji Information Database System (MajIs), DAWASCO has the highest number of 885 employees, followed by 5 UWSAs with more than 150 employees namely; Mwanza (244), Mbeya (191), Arusha (190), Dodoma (172) and Morogoro (157) while Babati and Sumbawanga has a least number of 35 and 37 employees respectively. The highest staff turnover was reported in Tanga with 2.5% and while Shinyanga though being having a high staff exodus during year 2008/2009 but could not report the status in either MajIs nor in hard copy of the annual report for the respective year. The highest turn over experienced in Tanga is envisage being due to labour market demand of the professionals and their personal appeals of searching for green pastures. In general a total of 6.39% was recorded from all the utilities, this is almost around 182 employees that were either retrenched, resign or seize up their services in other ways with the Utilities. All UWSAs have Scheme of Services but most of these schemes of services are outdated except that of Tanga which during the period of review was under revision. In considering the market price of the professionals and the influx of globalisation in the regional urban centres, authorities are encouraged to strive and thoroughly review their scheme of services to avoid staff exodus and losing of their available competent professions. During the year 2008/2009 Tanga UWSA recorded a highest productivity with manning ratio of 5.9 employees per 1,000 water supply connections while Lindi reported the lowest productivity with a manning ratio of 23.6 employees per 1,000 water supply connections. The positive progress has been observed in all the utilities, the ratios were lower as compared to the previous year 2007/2008 in which amongst others Tanga had the lowest ratio of 6.4 and while Lindi had the highest of 51 employees per 1,000 connections.

Gender balance continue to be a critical challenge in most of the UWSAs, though Government’s encouragement to these authorities on increasing the number of women employees to the National Standard of 30%, UWSAs recorded an overall of 22.56% with Moshi having the highest ratio of 32% while Babati, Iringa, Lindi, Mwanza, Mtwara and Singida reported a value below 20%. Table No. I2 and Chart Nos. 5 and 6 illustrate the current situation on the number of staff, female proportionate and staff per 1,000 active connections in the urban water and sanitation authorities.

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Table No. I2: Total Staff, % Female, Staff Turnover and Productivity

UWSA TOTAL NO OF STAFF (No)

Permanent STAFF (No)

Contract STAFF (No)

FEMALE STAFF (%)

STAFF TURNOVER

(%)

STAFF PER 1000 CONNECTIONS

(W & S)

Arusha 190 190 NIL 22.11 2 6.18 Babati 35 11 24 11.00 0 16.00 Bukoba 65 15 50 21.90 0 16.00 Dodoma 172 141 31 25.00 0.2 9.30 Iringa 99 98 1 18.00 0 8.90 Kigoma 68 18 50 24.00 1 8.60 Lindi 49 26 23 14.60 0 23.60 Mbeya 191 52 139 28.20 0 8.36 Morogoro 157 111 46 20.00 0 7.90 Moshi 144 141 3 32.00 0.69 8.80 Mtwara 58 17 41 15.52 0 8.80 Musoma 76 17 59 25.40 0 19.70 Mwanza 244 157 87 16.80 0 9.52 Shinyanga 68 13 55 20.60 0 6.70 Singida 63 29 34 15.87 0 14.30 Songea 57 24 33 22.00 0 10.50

Sumbawanga 37 14 23 24.32 0 8.82 Tabora 85 16 69 21.18 0 8.30 Tanga 121 94 27 25.00 2.5 5.90 Total [19] 1,979 1,184 795 21.24 6.39 10.85 DAWASCO 885 885 - 26.55 0 12.00

TOTAL 2,864 2,069 795 22.56 6.39 10.91 Chart No. 5: Number of Staff; % Female and Staff/1,000 Connections – WSSAs

-

50

100

150

200

250

300

Aru

sha

Baba

ti

Buko

ba

Dod

oma

Iring

a

Kig

oma

Lind

i

Mbe

ya

Mor

ogor

o

Mos

hi

Mtw

ara

Mus

oma

Mw

anza

Shin

yang

a

Sing

ida

Song

ea

Sum

bawa

nga

Tabo

ra

Tang

a

TOTAL STAFF (No) FEMALE STAFF (%) STAFF PER 1000 ACTIVE CONNECTIONS

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Chart No. 6: Number of Staff; % Female and Staff/1,000 Connections – DAWASCO

885

26.55 13.69 -

100

200

300

400

500

600

700

800

900

1,000

TOTAL STAFF (No) FEMALE STAFF (%) STAFF PER 1000 ACTIVE CONNECTIONS

DAWASCO

4.2 HIV Aids Interventions The Authorities of Babati, Morogoro, Mtwara, Mwanza, Singida, Songea and DAWASCO have not shown any interventions to HIV/AIDS programmes and not included them their annual budgets. For the reporting year 2008/2009 the amount budgeted and spent in the authorities for HIV/AIDS interventions ranges from Tshs 4,670,000.00 in Tanga down to Tshs 100,000.00 in Bukoba. The overall percentage expenditure to the total water and sewerage sales in all the UWSAs is 0.03%. A total of Tshs 53,187,631,409.36 (DAWASCO alone Tshs 29,950,088,490.84 but none was spent for HIV/AIDS) was generated and only Tshs 14,452,567.00 spent on HIV/AIDS programmes. Table No. 13 below depict the status of proportion amount spent on HIV/AIDS programme to the total revenue collected.

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Table No. 13: Revenue Collection Vs HIV Expenditure

UWSA

TOTAL WATER & SEWERAGE

SERVICES SALES (REVENUE)

TOTAL ARREARS (TSHS)

HIV EXPENDITURE

(TSHS)

% HIV EXPENDITURE TO REVENUE

Arusha 3,764,438,945.00 972,001,561.20 982,100 0.03 Babati 255,909,960.00 6,707,620.00 - - Bukoba 657,118,222.00 159,072,620.00 100,000 0.02 Dodoma 3,231,055,186.00 198,890,324.00 1,200,000 0.04 Iringa 1,779,242,049.00 501,872,364.00 515,000 0.03 Kigoma 380,320,170.00 417,572,718.20 1,000,000 0.26 Lindi 196,339,784.00 44,214,677.00 447,000 0.23 Mbeya 2,114,895,248.00 786,655,739.00 2,882,967 0.14 Morogoro 3,383,420,928.00 532,074,094.94 - - Moshi 2,003,771,837.47 505,504,108.48 290,000 0.01 Mtwara 895,374,064.00 262,640,301.90 - Musoma 997,431,602.00 243,618,667.46 290,500 0.03 Mwanza 5,431,317,692.05 1,796,126,612.66 - - Shinyanga 1,058,814,315.00 150,389,486.00 920,000 0.09 Singida 422,446,007.00 67,500,715.00 - - Songea 734,990,942.00 199,133,955.00 - - Sumbawanga 317,807,240.00 78,260,700.00 661,000 0.21 Tabora 1,071,601,289.00 596,377,864.00 494,000 0.05 Tanga 3,541,247,438.00 438,545,585.00 4,670,000 0.13 Sub Total 32,237,542,918.52 7,957,159,713.84 14,452,567.00 0.04

DAWASCO 20,950,088,490.84 - - -

TOTAL 53,187,631,409.36 7,957,159,713.84 14,452,567.00 0.03

4.3 Implementation of MoU for the year 2008 – 2009

4.3.1 Performance of the Contract targets Commercial Water Supply and Sewerage Authorities entered into a Memorandum of Understanding (MoU) with the Ministry of Water for the period July 2008 – June 2011. The objective of the MoU is to further increase efficiency and effectiveness by consolidating and enhancing the technical, financial and commercial sustainability of UWSA’s operations in compliance with legislation, guidelines and performance contract targets set in Appendix A of the MoU The performance evaluation was based on the achievement of the set performance contract targets in appendix A of the Memorandum of Understanding. The performance of the contract targets by UWSAs is appended in the UWSAs Annual performance report.

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4.3.2 Evaluation of Board and Managing Director for the Year Ended June 2009 It is the obligation of the Urban Water Supply and Sewerage Authority to evaluate the performance of the Managing Director and to conduct Board of Directors self assessment annually in accordance with Appendix E & F of the Memorandum of Understanding (MoU) In this exercise the Board members perform self-evaluation exercise; a process based on individual perceptions. On the other hand the selected adhoc committee from the board members evaluates the performance of the Managing Director for specific financial year.

During the financial year 2008/2009 all UWSAs could not met the required submission date of 15th September. This Financial year, only seventeen (17) Authorities (Arusha, Iringa, Mbeya, Lindi, Shinyanga, Kigoma, Musoma, Babati, Tanga, Bukoba, Sumbawanga, Dodoma, Morogoro, Songea, Mtwara, Tabora and Mwanza) submitted their evaluation reports. However authority of Singida performed the evaluation very late and couldn’t submit the reports during the preparation of this report while Moshi could not submit the report. Generally the evaluation result of the 17 reports submitted from the above mentioned UWSAs shows that;

i. The MD quantitative evaluations were good with minimum score of 61% (Tabora) and maximum score of 98.5% (Babati). The qualitative evaluation was good for all UWSA except Kigoma and Tabora which scored average.

ii. The self evaluation of the Board of Directors ranged between 100% (Babati) and 69%

(Kigoma) The Board gave recommendations to the management on a number of issues for future performance improvement. The summary of evaluation results are as shown in Table 14.

To improve the next years’ evaluation, the Authorities of Arusha, Musoma, Babati, Mbeya, Kigoma and Mwanza are obliged to perform the evaluation process in accordance to the requirement stipulated in the MoU.

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Table 14: Summary of the Evaluation Report

No

UWSA

SCORES

Remarks/Comments MD’s Evaluation Board

Evaluation (%) Quantitative

(%) Qualitative

1 ARUSHA 84.1 Good 95 Nine members participated in the MD’s evaluation exercise. An adhoc committee was not formed

All ten members of the board participated in the self evaluation exercise.

2 SHINYANGA 85 Good 81.7 Five members form an adhoc committee

Eight members participated in the self evaluation exercise.

3 MUSOMA 94 Good 96 The MDs evaluation was not properly done as per MoU. Only one form was submitted without any information.

4 IRINGA 85 Good 92 All ten members of the board performed the self evaluation exercise

A Consultant was engaged to compile and write a report of the Board self evaluation as required in the MoU

An External consultant compiled the evaluation report as required.

5 BABATI 98.5 good 100 Seven members of the board participated in the self evaluation exercise.

An External consultant compiled the evaluation report as required

Doesn’t; state if the adhoc committee was formed

6 MBEYA 89.7 Good An external consultant summarized the Board self evaluation report.

No adhoc committee was formed instead nine members of the board participated in the MDs evaluation exercise

7 TANGA 85 Good 94.6 Seven members out of ten participated in the self evaluation exercise

8 BUKOBA 87 88.2 All 10 members of the board participated in the evaluation exercise.

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No

UWSA

SCORES



(%) Qualitative

9 KIGOMA 71.6 Average 69 No adhoc committee was formed,

Seven members participated in both MD and Board evaluation exercises.

The compilation was done by the Board Chairman and one member of the board which is contrary to the requirement as in the MoU

10 S’WANGA 88.5 Good 83 Seven members participated in the evaluation exercise.

The report was compiled by an external consultant as required in the MoU

11 DODOMA 82 Good

91.1 Nine members of the board participated in the MD evaluation, and four members compiled

Nine members of the board participated in the evaluation exercise

An external consultant compiled the report

12 MOROGORO 90 Good 74 Five members of the board formed an adhoc committee for the evaluation of MD

Seven Members participated in the self evaluation exercise.

13 SONGEA Not done Not done 91.7 The MDs Evaluation was not submitted since the MD is new and stayed with the board for less than a year

Seven members of the Board participated in the evaluation exercise

14 LINDI Not given Not given 81.3 Adhoc committee of three members of the board performed the MDs evaluation exercise and compilation of the evaluation report.

Eight members of the board participated in the Directors self evaluation exercise.

15 MTWARA 88 Good 85.7 It is stated that five members of the board performed the MD’s evaluation exercise, how ever two quantitative evaluation forms and

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No

UWSA

SCORES



(%) Qualitative

one qualitative form was submitted. Eight members of the board

participated in the Directors self evaluation exercise.

16 MWANZA 78 Good 97.9 Eight members performed the MD’s evaluation exercise but the MoU requires that an adhoc committee of 3 to 5 members formed for that exercise.

Eight members of the board performed the self evaluation exercise.

17 TABORA 61 average 81 Adhoc committee of five members of the board performed the MD’s evaluation.

All ten members of the board participated in the self evaluation exercise.

Note: NS = Not Submitted NM = Not Mentioned

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4.4 Financial Management Issues

4.4.1 Financial Statements Audited Financial Statements always form an integral part of the UWSAs annual performance reports and comprises of Balance Sheet, Profit and loss statement, Cash-flow statement, Management Audit report and replies on the findings.

All UWSA’s must be aware that not only do they have to provide financial statements because of legal dispositions to do so but they are also regarded by third parties namely; Stakeholders, Development Partners, Banks, etc. as key instruments on which to base their financing decisions. The accounts books and statements therefore need to be maintained and produced as per International Financial Reporting Standards (IFRS) pertaining format, taking into consideration the account charts as well as accounting codes. Presentation of financial statement as required by IFRS provides the minimum requirements for disclosure on the face of the balance sheet and income statement. The UWSAs’ Accounts are required to be audited by Controller and Auditor General (CAG) through her regional National Audit Officers or other private own certified appointed Auditors. The annual accounts should be prepared on accrual basis in accordance with IFRS format and approved UWSAs’ chart of accounts. Auditors Reports in form of Management letters should also be submitted wherein they perform an attestation function with respect to information presented. They provide details of issues requiring Management attention in order to take remedial actions on observed areas so as to improve the internal control mechanism and other factors affecting the system both quantitatively and qualitatively.

4.4.2 Status of Audited Accounts As according to Section 1.2 (28) of the Memorandum of Understanding between MoWI and UWSAs. All the authorities are required to submit draft annual report including draft annual financial statements by 30th September and final annual report including audited annual financial statements to the MoWI and EWURA according to the prescribed format (in Appendix C of the MoU) before 31st December of every year. For the period under review of 2008/2009, all UWSAs submitted their accounts to auditors within the required period (by 30th September 2009) except Arusha, DAWASCO, Morogoro, Mtwara, Mwanza, Tanga, Tabora, Bukoba, Shinyanga, Songea and Sumbawanga as shown in Table No. 15a However, all UWSAs’ final audited accounts could not be completed and made available for reference within the required time (before December, 2009).

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All UWSAs received clean (unqualified) reports having also complied with Public Financial Act, of 2001 as amended, and Public Procurement Act, of 2004 except Arusha, Kigoma, DAWASA and DAWASCO who had Qualification Opinion. Table No. 15b below illustrate audit opinion, audit submission, management response and reasons for qualification to the respective utilities. Audit Reports for Tabora, Musoma, Songea and Sumbawanga were not completed before the preparation of this assessment report.

4.4.3 Compliance to IFRS/IPSAS and Accounting Codes All UWSAs could not comply with the standard financial reporting format. Hence the Ministry in collaboration with the CAG is currently in the process to conduct an intensive short training course on the preparation of financial statements in accordance to IFRS/IPSAS and common format of Accounting Codes.

Table No. 15a: Annual Report and Financial Statements Submission Status

Utility

ARUSHA Submitted (14/10/2009) DODOMA Submitted (30/09/2009) Submitted (30/09/2009) DAWASCO Submitted (21/11/2009) Submitted (11/10/2009) Late submissionIRINGA Submitted (30/09/2009) Submitted (30/09/2009) Timely SubmissionMBEYA Submitted (29/09/2009) Submitted (29/09/2009) Timely submissionMOROGORO Submitted (3/11/2009 ) Submitted (01/10/2009) Late submissionMOSHI Submitted (30/09/2009) Submitted (30/09/2009) MTWARA Submitted (05/10/2009) Submitted (22/09/2009) MWANZA Submitted (03/11/2009) Submitted (08/10/2009) Late SubmissionSHINYANGA Submitted (20/11/2009) TABORATANGA Submitted (15/10/2009) Submitted (15/10/2009 Late submissionMUSOMA Submitted (01/09/2009) Submitted (01/09/2009) Timely submissionBUKOBA Submitted (08/12/2009) Not Submitted Late SubmissionKIGOMA Submitted (12/08/2009) Submitted (12/08/2009) Timely SubmissionSINGIDASONGEA Submitted (12/10/2009) Submitted (25/11/2009) SUMBAWANGA Submitted (10/11/2009) Submitted (10/11/2009) LINDI Submitted (12/10/2009) Submitted (12/10/2009) BABATI Submitted (12/10/2009) Submitted (12/10/2009)

Remarks

Submitted (14/10/2009) Late submissionTimely submission

Timely submissionTimely submission

-

Submitted (15/09/2009)

-



Annual Report 2008/2009 Financial Statements (ending 30th June,2009)

Late submissionLate submission

Late submissionLate submission

Timely Submission

Late SubmissionLate Submission

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Table No. 15b: Three Year Trend on Audited Accounts of UWSAs

UWSAs TYPE OF AUDIT OPINION Date Account

Submitted for Audit {Sept.

End = Standard)

Management

Report/

Responses Available (yes/no)

Reason(s) for

Qualification

2006/2007 2007/2008 2008/2009

Category A

ARUSHA Unqualified Unqualified Qualified Not Standard YES 1. Valuation of buildings and intangible assets were valued on the basis of depreciated replacement cost instead of the market based evidence, contrary to IAS No. 16 and IAS No. 38.

2. Valuation did not indicate the remaining useful life of the revalued individual or group of assets amounting TSh 6.913 billion and intangible assets amounting Tshs 56 million.

DODOMA Unqualified Qualified Unqualified Standard YES IRINGA Unqualified Unqualified Unqualified Standard YES MBEYA Unqualified Unqualified Unqualified Standard YES MOROGORO Unqualified Unqualified Unqualified Standard YES MOSHI Unqualified Unqualified Unqualified Standard YES MTWARA Qualified Unqualified Unqualified Standard YES MWANZA Unqualified Unqualified Unqualified Not Standard YES SHINYANGA Unqualified Unqualified Unqualified Not Standard YES TABORA Unqualified Unqualified UQR Not Standard YES TANGA Unqualified Unqualified Unqualified Not Standard YES Category B

BUKOBA Unqualified Unqualified Unqualified Not Standard YES KIGOMA Unqualified Unqualified Qualified Standard YES 1. The Authority did not comply

with the directive given by the NBAA on 2004 requiring the entities to adopt IFRS.

2. There are no satisfactory explanations given on the Debt Suspense Account of TZS 299,138,433

SONGEA Unqualified Unqualified UQR Not Standard YES MUSOMA Unqualified Unqualified UQR Standard YES SINGIDA Qualified Qualified Unqualified Standard YES

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UWSAs TYPE OF AUDIT OPINION Date Account

Submitted for Audit {Sept.

End = Standard)

Management

Report/

Responses Available (yes/no)

Reason(s) for

Qualification

2006/2007 2007/2008 2008/2009

S’WANGA Unqualified Unqualified UQR Not Standard YES Category C

LINDI Unqualified Unqualified Unqualified Standard YES BABATI Unqualified Unqualified Unqualified Standard YES DAWASA Unqualified Qualified Qualified Not Standard YES 1. There are no alternative audit

procedures to be performed by the Auditor to satisfy the total amount (Tshs 5,345 million). that should have been recognized as tariff revenue.

2. The Auditor unable to confirm the accuracy of the revaluation reserve (Tshs 44.7 billion) reported in the balance sheet and the revaluation loss charged to profit and loss account.

DAWASCO Qualified Qualified Qualified Not Standard YES 1. The billing system has significant weaknesses in the billing process and data that make the entire cycle unreliable for generating bills that are accurate and complete for financial reporting purposes.

2. The Auditor unable to confirm on the accuracy and completeness of the reported water charge revenue amounting to Tshs 17 billion and related trade debtors balance of Tshs 5.3 billion as at June 2009.

Opinion Status 2006/2007 2007/2008 2008/2009

Unqualified 18 17 13 Qualified 3 4 4 Not Completed - - 4

Note: UQR = Under Quality Review by the CAG

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4.4.4 Credit Policy and Accounts Payable Status Liquidity is an important and critical issue in any commercial institution or entity. It refers to the speed and ease with which an asset can be converted to cash, the more liquid an institution is the less likely it is to experience a financial distress (that is, difficulty in paying debts or buying needed assets). A better management of accounts receivable can alleviate the authority from problems associated with working capital, while mismanagement of short-term borrowing or accounts payable might put the authority in severe financial stress. Authorities receive their supplies i.e. spares, fuel, chemicals etc. either by cash purchase or by credit and pay later. Therefore when the authority receives its supplies on credit the supplier expects to be paid in time as agreed to avoid financial stress on either side. During the review period of 2008/2009 performance of the credit policy in many of the UWSAs was not impressive. On outstanding total debts that include Energy and Supplier’s bills, Kigoma reported the highest of Tshs 456,571,419.05 followed by Moshi with Tshs 358,326,417.52 while Tanga reported none. As for the total arrears Mwanza has the highest of Tshs 1,796,126,612.66 followed by Arusha with Tshs 972,001,561.20 while the UWSA with lowest arrears was Babati that has Tshs 6,707,620.00. Table No. 16 below illustrate in detail outstanding energy bills, debts to suppliers and arrears from each of the UWSA. Table No. 16: Debts and Arrears Status in UWSAs

UWSA OUTSTANDING ENERGY BILLS

(TSHS)

DEBTS TO SUPPLIERS

(TSHS)

TOTAL DEBTS (TSHS)

GOVT. INSTITUTION

ARREARS (TSHS)

PRIVATE ARREARS (TSHS)

TOTAL ARREARS (TSHS)

Arusha - - - 56,186,658.09 915,814,903.11 972,001,561.20 Babati 5,428,463 33,904,590.60 39,333,053.90 2,366,950 4,340,670.00 6,707,620.00 Bukoba 9,828,536.90 - 9,828,536.90 53,386,431 105,686,189.00 159,072,620.00 Dodoma - - - 67,116,370 131,773,954.00 198,890,324.00 Iringa - 36,676,540.00 36,676,540.00 - - - Kigoma 348,989,331.50 107,582,087.55 456,571,419.05 158,741,461 258,831,257.20 417,572,718.20 Lindi - 10,096,000.00 10,096,000.00 13,558,660 30,656,017.00 44,214,677.00 Mbeya - - - 118,625,435 668,030,304.00 786,655,739.00 Morogoro - 90,973,680.00 90,973,680.00 83,349,121 448,724,974.40 532,074,094.94 Moshi - 358,326,417.52 358,326,417.52 121,320,103.25 384,184,005.23 505,504,108.48 Mtwara 95,876,864 84,130,680.00 180,007,543.64 84,258,614 178,381,687.90 262,640,301.90 Musoma 29,135,492.61 34,223,861.00 63,359,353.61 64,053,800 179,564,867.45 243,618,667.46 Mwanza 139,510,821 86,004,104.00 225,514,925.00 401,639,501.66 1,394,487,111.00 1,796,126,612.66 Shinyanga 53,980,554.66 - 53,980,554.66 60,058,234 90,331,252.00 150,389,486.00 Singida 11,576,337 38,395,137.17 49,971,474.60 7,306,485 60,194,230.00 67,500,715.00 Songea 22,664,532 23,716,691.00 46,381,223.00 76,789,936 122,344,019.00 199,133,955.00 Sumbawanga 82,883.60 - 82,883.60 39,820,000 38,440,700.00 78,260,700.00 Tabora 4,149,741.55 66,283,120.57 70,432,862.12 367,630,446 228,747,418.00 596,377,864.00 Tanga - - - 83,211,363 355,334,222.00 438,545,585.00

DAWASCO - - - - - -

TOTAL 721,223,558 970,312,909 1,691,536,468 1,859,419,569 5,595,867,781 7,455,287,350

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5.0 OBSERVATION AND RECOMMENDATIONS 5.1 Observation

During the year 2008/2009 a number of achievements and challenges were observed while implementing the Water Sector Development Programme in the UWSAs. The achievements include;

(ix) Capacity building through the procurement of operational equipment including vehicles, motorcycles, operational equipment, computers and accessories for Dodoma, Morogoro, Tabora, Iringa, Songea, Babati, Lindi, Mtwara, Shinyanga, Singida and Sumbawanga.

(x) Proceeding with development projects in the regional centers of Mbeya, Morogoro, Songea, Mwanza and the Kahama/Shinyanga water supply project.

(xi) Increasing in the percentage population living in the service area to 83.4% with the water service at an average of 17.2 hours as compared to 80% at average hours of service of 17.6 reported in 2007/2008.

(xii) The total number of Kiosks increased from 1,571 in the year 2007/2008 to 1,844 in the year 2008/2009.

(xiii) Non revenue water or Unaccounted for Water in the year 2008/2009 improved to 37% from 39% and 40% reported in year 2007/2008 and 2006/2007 respectively.

(xiv) Water connections in year 2008/2009 increased to 386,168 from 274,617 and 199,106 reported in year 2007/2008 and 2006/2007 respectively with a metering ratio of 80% compared to 69% in year 2006/2007.

The challenges observed and are in need of proper attention are;

(iii) Long procurement processes in the authorities; delay in disbursement of funds from treasury and Non- availability of competent and qualified staff in the utilities are the main causes for some of the projects to be behind implemetation time schedule. This also led to increase in cost during the implementation of projects.

(iv) Delay of submission of implementation status reports by Utilities; Inconsistence in the report writing formats and Non-availability of reliable data from various sources to enhance preparation of report has been an obstacle for timely available reports; this has been the source of delay in report writing.

(v) Insufficient time for monitoring and evaluation of physical implementation status of ongoing activities which are under construction this led to unrealistic information reported by utilities.

(vi) The Performance of the credit policy in many of the UWSAs was not impressive. On outstanding total debts that include Energy and Supplier’s bills, Kigoma reported the highest of Tshs 456,571,419.05 followed by Moshi with Tshs 358,326,417.52.

(vii) All UWSAs could not submit the Board’s and MD’s evaluation reports to the Ministry on the required time which i.e. before 15th September after the end of the financial year. However, all UWSAs MD’s evaluation report were properly

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filled and detailed except for Sumbawanga, Mtwara, Iringa and Lindi; while Singida could neither present Board’s self assessment nor MD’s evaluation reports.

(viii) All UWSAs except Arusha, Kigoma, DAWASA and DAWASCO received Qualified Opinion in their Audit Reports for the year 2008/2009. However, reports for Tabora, Musoma, Songea and Sumbawanga they were still under quality review during the preparation of this assessment report.

(ix) The overall percentage expenditure on HIV/AIDS interventions in UWSAs as compared to the total water and sewerage sales is only 0.03%. Tanga UWSA reported the highest expenditure on HIV/AIDS interventions as compared to other utilities. The authority spent TShs 4,670,000/= equivalent to 0.009% proportional to the overall total water sales of TShs 53,187,631,409/= from all UWSAs.

5.2 Recommendation

From the above observations it is recommended that;

(i) All UWSAs should strive to ensure that Procurement Units are in place with competent and qualified staff to minimize delays and enable all procurements be done in accordance to Public Procurement Act of 2004 and Financial Act of 2001.

(ii) Preparation and Submission of reports including project implementation and audit reports should be done in adherence to the set formats and standards.

(iii) Monitoring and evaluation of all ongoing activities and projects is necessary so as to get the actual implementation status and to avoid unrealistic information gathered from sent reports.

(iv) All UWSAs should prepare and follow up the Credit Policy and ensure that the standard accounts payables and accounts receivables are adhered to.

(v) To understand the Management status of the Authority, self-assessment of the Board and performance evaluation of the Managing Director is indispensable. All UWSAs should ensure that these evaluations are properly done and reports timely submitted in accordance to the obligations in the MoU (2008 - 2011).

(vi) All UWSAs are required to prepare their financial statements in accordance to IFRS and to ensure that they receive Unqualified Opinion.

(vii) There is a need for all UWSAs to put more efforts and increase their contributions for covering HIV/AIDS interventions.

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APPENDIX I PLANNED ACTIVITIES, OUTCOMES/ACHIEVEMENTS AND STATUS

AS AT DECEMBER, 2009

A: C1 Management Support for Utilities-large and small (US$31 million): Capacity building grants to support

Planned Activities Planned Output Status as per December 2009 C1.1 Office Rehabilitation:

Procure a contractor for rehabilitating office buildings for UWSAs of Bukoba, Iringa, Kigoma, Lindi, Musoma & Singida, Shinyanga.

7 offices rehabilitated UWSAs are at different stages of design and preparation of construction drawings. Musoma UWSAs started to rehabilitate from own source. Bukoba are to build new office as part of the former offices has been taken by BWOs

DUWSAs 82 improved offices made available

Construction completed for Misungwi and Vwawa DUWSAs. Acquiring of title deeds for other DUWSAs underway.

C1.2 Construction of new office:

Procure a consultant to prepare designs & tender documents and supervise construction for UWSAs of Babati and Sumbawanga.

Tender document made available and offices constructed, furnished and commissioned

Design of offices ready but above the budget. UWSAs advised to re-phase to meet the allocated fund.

C1.3 Vehicles:

Procure a supplier (s) of (2) vehicles for 10 category ‘B’ and ‘C’ UWSAs Iringa, Songea, Babati, Lindi, Mtwara, Shinyanga, Singida Sumbawanga, Bukoba, Kigoma and Musoma

2 Station wagon vehicles made available in each UWSA

22 Motor vehicles were procured for 11 UWSAs that is two for each.

DUWSAs Motor vehicles (5 Pick- up double cabins and 5 land cruisers) for 10 DUWSAs (Kilwa Masoko, Makete, Urambo, Mbozi, Misungwi, Handeni, Hanang, Nachingwea, Igunga and Mbinga) have been procured and will be handed over to DUWSAs before March 2010

C1.4 Motorcycles

Procure a supplier (s) of (4) motorcycles for the UWSAs of Iringa, Lindi, Bukoba, Musoma,Singida, Songea, Mtwara, Babati, Shinyanga and Sumbawanga. ,

4 motorcycles made available in each UWSA

40 Motor cycles were procured for 10 UWSAs, each 4 motorcycles as planned.

DUWSAs Motor cycles available in each DUWSA

120 Motorcycles for (100) DUWSAs/STs/NPs have been purchased and handed over to selected DUWSAs.

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Planned Activities Planned Output Status as per December 2009 C1.5 Computers and accessories

Procure a supplier(s) of (4) computers and accessories for the UWSAs of Iringa, Lindi, Bukoba, Musoma, Singida, Songea, Mtwara, Babati, Shinyanga, Sumbawanga and Kigoma

4 computer sets made available for each UWSAs

Computer sets were procured for 11 UWSAs as planned.

DUWSAs 140 computer made available and (1) set distributed to each DUWSSAs

Only few purchased so far, the final procurement will be implemented after construction of offices.

5. Operational equipment

For the UWSAs of Singida, Shinyanga, Musoma, Mtwara Sumbawanga, Lindi, Babati, Songea, Kigoma Iringa, Bukoba, Tanga, Tabora, Mwanza, Morogoro, Dodoma and DAWASA (16 UWSAs & DAWASA)

Total of 78,000 Water meter/ ultrasonic flow meters for 13 UWSAs & DAWASA. GIS are installed, mappings are made available. Training conducted for 16 UWSAs. Sewer cleaning tools for 5 UWSAs and DAWSA are made available

A total of 19,654 water meters (including bulky water metres) supplied to the UWSAs of Iringa, Songea, Babati, Lindi, Mtwara, Shinyanga, Singida Sumbawanga, Bukoba and Musoma, Morogoro, Shinyanga and Tabora. Sewer emptier truck and sewer cleaning tools were purchased for Dodoma UWSA only. Budget set for purchase of water meters were too low e.g USD 0.150 mil were budgetred to buy 50,000 meters for DAWASA. All activities related to MIS/GIS will be implemented centrally under the MIS unit in the MoWI headquarter.

C1.6 MIS installation

Procurement of a consultant/supplier (s) for establishment & development of MIS (including procuring of furniture, equipment, hardware, software and training of the staff) for all UWSAs and DAWASA

The MIS established, developed & equipment made available.

This activity is to be implemented centrally under the MIS unit in the MoWI headquarter. Current Majlis is used (data base for all UWSAs)

C1.7 Technical Assistance:

Procure a consultant to prepare designs & tender documents and supervise construction.

Design and preparation of tender documents for rehabilitation and expansion of the water supply and sewerage system is under way.

UWAS of Babati, Lindi, Mtwara, Sumbwanga and Singida

(i)Supervision of the drilling of boreholes and rehabilitation / Construction of the

Supervision consultancy for drilling and construction/ rehabilitation of the water supply on ongoing at 5 UWSAs Singida, Babati, Mtwara, Sumbawanga and Lindi

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Planned Activities Planned Output Status as per December 2009 water supply system

Bukoba and Musoma : Updating previous feasibility study report, detailed design and preparation of tender documents for rehabilitation and expansion of water supply and sewerage system

Study reports and Tender Documents

Bukoba and Musoma – design and preparation of Tender Document at final stage.

Studies, deisgn and preparation of tender documents to UWSAs of Moshi, Kigoma, Arusha, Tanga, Dodoma, Morogoro, Shinyanga, Tabora


8 UWSAs-design and preparation of tender documents at final stage

Studies and preparation of tender documents in Mwanza, Mbeya, Iringa, Musoma and Songea


Under procurement of consultant (negotiation stage)

Singida: Water source study (Basuto & Ndurumo) and preparation of detailed designs and tender documents for sewerage


On going construction works included drilling of deep boreholes. Basuto water source study will be conducted in 2nd Phase of WSDP

Seven Towns Urban Upgrading Programme: (ACP-EU water facility programme) – feasibility study, design and preparation of tender documents for Babati, Sumbawanga, Bukoba, Musoma, Lindi, Mtwara and Kigoma).

Feasibility study, design and tender documents

Procurement of consultant at final stage. Contract will be signed before April 2010.

DUWSSAs

Design water supply projects in 14 townships and prepare tender documents


Design and preparation of Tender Document at final stage in 18 DUWSAs and STs. Procurement of consultants under final stage in 32 DUWSAs and 3 NPs.

C1. 8 Training

Organize and conducting (6 ) trainings in technical, computer/GIS and accounting fields:

60 training events conducted and staff trained

Professional skills have been provided to 300 staff from the UWSAs, DUWSAs and NPs in the field of management, business and finance. Training included entrapreneurship, procurement, business planning, corporate governance, customer care, labour law, customer billing, accounting and IFRS, marketing and Finance for non financials

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Planned Activities Planned Output Status as per December 2009 (v)

C1.8 Hygiene/handwashing promotion/sanitation schools - Sanitation marketing, school sanitation programme and hand washing programme

Promotional / EIC materials produced and disseminated

Terms of reference to procure a consultant who will prepare training material for Hygiene, hand washing promotion, School Sanitation is under preparation. Each UWSA will then procure trainers to disseminate the material in areas covered by the authority. The MoU has been prepared between Ministry of Health and social welfare, Ministry of Education and Vocational Training, Ministry of Water and Irrigation and the Prime Minister Office Local Government Authority.

C1. Incremental Costs: for all utilities Purchasing fuel, office management facilities and facilitating site/field supervision

Funds for incremental costs are available

Tshs 1.437 USD mil were utilized to cover incremental cost for UWSAs, DUWSAs/ST and NPs.

2.

B: C2 Urban WSS Investments (US$479.9 million): A combination of capital development grants and/sub-loans to support

Planned Activities Planned Output Status as per December 2009 iii) Expansion and WSS services

in Dar es Salaam (US$175 million) – construction of Kidunda dam to regulate Ruvu river, dedicated trunk main to University Reservoir, augmentation of treatment capacity and expansion of network to unserved areas

Study report of Kidunda Dam, designs and tender documents are available. The extended intake, treatment works and 55km of parallel rising main (1400mm) are available.

Consultant for carry out feasibility study, detail design and preparation of tender document for construction of Kidunda dam already procured and contract signed Feb 2010. Development of Kimbiji and Mpera ground water for DSM - supervision consultant and contractor procurement under way Improvement of water production at Lower Ruvu waterworks (MCC) – procurement of contractor underway (prequalification stage). Construction of Lower Ruvu duplicate line- bidding documents under final preparation and expected top be advertised in March 2010. NRW Part I: Bidding Document ready and tender will be advertised in March 2010. NRW Part II: consultant under procurement. The consultant assignment is to do the assessment of water uses and

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Planned Activities Planned Output Status as per December 2009 losses and execution of Performance Based Contract to reduce water losses in Dar es Salaam. Three contracts completion stage: Water supply and sewerage rehabilitation DWSSP – project (i.e Package 2E - Water supply networks for Kibaha town, Kwa Matiasi, and Kongowe, Visiga Mlandizi areas and Package 2C- Water supply networks for Changanyikeni, Makongo, Ubungo, Kimara Baruti, Temboni, Kwa Msuguri, Stopover and Kimara and Package 2A- Improve Distribution network at Tangibovu, Mbezi Beach, Kunduchi and Tageta areas). DSM Water Supply and Sanitation Project (BTC): Total cost of the project is € 7.8 mil. ($ 10.2mil). Study completed and test boreholes’ drilling continues. Social studies completed. Contruct6ion works will start August 2010.

ii) Rehabilitation and expansion of WSS Services in 7 Group I Towns (US$26.1 million) Bukoba, Kigoma, Babati, Lindi, Mtwara, Musoma, and Sumbawanga

Boreholes drilled, transmission line installed & distribution 158 km, pipelines replaced and new 3840 connections are available.

Construction opf the immediate works to improve water supply systems for Sumbawanga, Lindi and Mtwara and Babati continued. Latest completion period is December 2010. Design at final stage for Bukoba, Kigoma, and Musoma. Procurement of contractor will start before June 2010. Bukoba and Musoma financed by AfD (earmarked)

(iii) Rehabilitation and expansion of WSS services in 2 Group II Towns (US$15.0 million) - Morogoro and Tabora;

Morogoro: New intake constructed, improved water treatment plant & water quality are available. New sewer connections are available. Tabora: 1700 new connections and 25km distribution pipeline are available

SECO: New sewer connections are available Designs &

For WSDP/basket fund – consultant are at final stage of completion the study and preparation of tender document. Tabora under SECO – Contract for installation of Bulk water meter at Igombe station, zone water meter and construction of meter chambers is 50% completed; design for other activities ongoing. Morogoro under MCC: Tender under prequalification stage (advertised). It is expected that construction and supervision. Construction will cover rehabilitation of

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Planned Activities Planned Output Status as per December 2009 improved intake (Dam), treatment plant are available

Mafiga water treatment plant and construction of new water treatment plant at Mambogo, repair of water tanks.. Consultant also expected to submit tarrif study report in February 2010.

(iv) Rehabilitation and expansion of WSS services in 4 Group III Towns (US$52.5 million) –Arusha, Dodoma, Moshi and Tanga

9000 connection and 68 km water supply also 18km and more than 1140 connection of sewerage made.

Design under way for Arusha, Moshi and Tanga. Dodoma- under procurement of contractor for construction of water supply and sewerage works. Dodoma–SECO Improvement of installed capacity of Mzakwe 90% complete. Contract for installation of zone water meter and construction of meter chambers is 50% completed

(v) Rehabilitation and expansion of WSS services in 6 Group IV Towns (US$21.3 million) –Mbeya, Mwanza, Iringa, Songea, Shinyanga and Singida;

Mbeya, Mwanza, Iringa: 10,520 connection and 159 km available. Improved sewerage system and sewage treatment is available. Singida: Boreholes are drilled, 45km distribution pipeline laid and 1200 new connections are available Shinyanga; New sewerage system is available Songea: 400 new sewer connections and sewage equivalent to 25,000 populations to be treated.

Regional Centres Programme: construction of water supply and sewerage on going for Iringa and Mbeya and Sewerage for Mwanza. The latest construction contract will complete in Sept 2011. Singida - Rehabilitation and expansion of water supply works started in November 2009 and will complete in Sept. 2011. Shinyanga- customer connection works completed (whereby 15449 customers connected for both Shinyanga and Kahama). Design for sewerage and water supply expansion at final stage. Songea – at contract negotiation stage and the project consist of water supply and sewerage expansion.

Quick wins in UWSAs

Tshs 893,762,500 were disbursed to the UWSAs of Musoma, Babati, Sumbawanga, Lindi, Bukoba, Singida and Kigoma for implementation of quick win projects.

(vi) Rehabilitation and expansion of WSS services in around 131 Group V Small Towns (US$45.0 million) – These include 93 gazetted townships, 32 un-gazetted small towns and 6 national schemes

Constructed Water projects, established Water utilities & Water Boards are available.

Investments in group 5 utilities have been made through two main systems, through quick wins and through WSDP procurement procedures (tendering and MoWI/WB approvals). All quick win projects in the small towns and National projects were financed through WSDP (basket). Major construction works within

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Planned Activities Planned Output Status as per December 2009 the group included water supply project in the small towns of Utete, Mpwawa, Ikwiriri, Kibiti, Bunda, Mwanhunzi, Bariadi and Igunga which followed normal procurement procedures (tendering). Total investment made in group 5 is Tshs 27,234,855,979.44

From July 2007 to date a total of Tshs. 2,763,617,940/= (appr. $ 2.13 million) has been disbursed to 6 national projects (HTM, Mugango–Kiabakari, Wanging’ombe, Makonde and Kahama Shinyanga) for rehabilitation of water supply infrastructure. Construction of water supply works for Utete and Mpwapwa – at 90% of completion.. AfD –earmarked Construction of water supply works for Ikwiriri and Kibiti – below 50% of implementation.

Chalinze NP – Package F, H and J – under construction and the final package completion period is Dec 2011. Package A, B, C, D, E & G under procurement of contractor(s). 6 STs under procurement of contractors (Masasi Nachingwea, Kibaigwa, Mvomero, Turiani, Gairo and Kilosa) . With exceptional of Masasi /Nachingwea, other works in 5 towns are expected to start by March 2011 56 STs and 3 NPs – will be able to procure contractors and complete construction before Dec 2012. While the remaining STS/NPs will be financed in 2nd Phase of WSDP

Shinyanga / Kahama Water Supply Project: Construction of 750 mm diameter and 62.1km long from Solwa to Kahama, Branch pipelines to villages of 48km long, Construction of 18,000m3 main reservoirs at Kahama town, Construction of distribution system of 199km long in Kahama town and Construction of Village off takes.

Construction of trunk main from Solwa to Kahama and off-takes to villages

Kahama-Shinyanga project - construction completed as planned. Construction of water supply distribution network underway.

UWSAs 2008-09 Projects Report [Final]

Documents

Transcript of UWSAs 2008-09 Projects Report [Final]