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. Proceeding with development projects in the regional centers of Mbeya, Morogoro, Songea, Mwanza and the Kahama/Shinyanga water supply project. 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. The total number of Kiosks increased from 1,571 in the year 2007/2008 to 1,844 in the year 2008/2009. 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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(ii)

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(v)

P a g e | ii (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. 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.

(vii)

(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 15 th 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 couldnt submit the reports during the preparation of this report while Singida could not perform the Board and Managing Directors 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. 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.

(ii)

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P a g e | iii 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. 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. 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. The Performance of the credit policy in many of the UWSAs was not impressive. On outstanding total debts that include Energy and Suppliers bills, Kigoma reported the highest of Tshs 456,571,419.05 followed by Moshi with Tshs 358,326,417.52. All UWSAs could not submit the Boards and MDs 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 MDs evaluation report were properly filled and detailed except for Sumbawanga, Mtwara, Iringa and Lindi; while Singida could neither present Boards self assessment nor MDs evaluation reports. 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. 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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P a g e | iv ABBREVIATIONS AND ACRONYMNS:

AGM: AWEC: CWSS DAWASA: DAWASCO DCWSS DNA DUWSA: EIA: EWURA: HIV/AIDS IFRS KVA: KWh: LGAs MCC MDs: MDGs MIS MKUKUTA MoU: MoWI: NGOs: NPs OPRAS: SECO STs TAMISEMI TANESCO: UfW UN UWSA: WHO: WSDP WSP WSSAs:

Annual General Meeting Annual Water Experts Conference Commercial Water Supply and Sewerage Dar es Salaam Water and Sewerage Authority Dar es Salaam Water Supply Corporation Directorate of Commercial Water Supply and Sanitation Data Not Available District Urban Water Supply and Sewerage Environmental Impact Assessment Energy and Water Utilities Regulatory Authority Human Immunodeficiency Virus/Acquired Immune Deficiency Syndromme International Financial Reporting Standards Kilovolt Ampere Kilowatt Hour Local Government Authorities Millenium Challenge Corporation Managing Directors Millennium Development Goals Management Information System Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania Memorandum of Understanding Ministry of Water and Irrigation Non Governmental Organizations National Projects Open Performance Review and Appraisal System Swiss Economic Corporation Small Towns Ministry of Regional Administration and Local Government Tanzania Electric Supply Company Limited Unaccounted for Water United Nations Urban Water Supply And Sewerage Authority World Health Organization Water Sector Development Program Water Stabilization Ponds 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 1.1 1.2 1.3 1.4 2.0 2.1 2.2 2.3 2.4 2.5 INTRODUCTION ................................................................................................... 1 Objective of the Assessment ....................................................................................... 1 Scope of Study ........................................................................................................... 3 Approach and Methodology ....................................................................................... 3 Structure of the Report ............................................................................................... 3 IMPLEMENTATION OF WSDP AND OUTPUTS .............................................. 4 Overall Achievements ................................................................................................ 4 Funds Disbursements Status for 2008/2009 ................................................................ 7 General Status of the Attainment and Outputs ............................................................ 8 General Progress and Key Outputs ........................................................................... 13 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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Page |2 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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Page |3 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.

Page |5 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.

Page |6 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. DodomaSECO: 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.

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

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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Page |9 Table No. 2: Water Demand, Production and Revenue Trend

UWSA Arusha Babati Bukoba DAWASCO Dodoma Iringa Kigoma Lindi Mbeya Morogoro Moshi Mtwara Musoma Mwanza Shinyanga Singida Songea Sumbawanga Tabora Tanga TOTAL Water demand Water demand 2007/08 2008/09 19,364,000 1,464,000 3,286,000 164,250,000 9,200,000 5,124,000 9,435,000 1,800,000 11,520,000 10,950,000 9,150,000 4,380,000 8,640,000 19,220,000 5,309,000 2,617,000 3,062,000 2,920,000 8,330,000 9,150,000 309,171,000 19,727,000 1,468,000 3,286,000 164,250,000 16,425,000 5,124,000 9,435,000 1,800,000 12,783,080 10,950,000 9,350,000 4,560,000 8,640,000 19,220,000 5,390,000 2,624,050 3,150,000 2,920,000 8,330,000 9,350,000 318,782,130 Water production 2007/08 15,586,000 1,110,000 2,260,000 92,651,729 7,945,000 4,255,000 2,993,000 468,000 10,360,000 8,739,000 8,445,000 1,944,000 3,861,000 13,832,000 3,254,000 1,490,000 2,285,000 1,391,000 4,788,000 8,946,000 196,603,729 Water Revenue Collection Revenue Collection production 2007/08 2008/09 2008/09 14,415,990 3,710,574,586 3,968,262,903 1,106,929 193,877,595 423,703,773 2,252,450 794,208,794 661,063,223 91,770,221 20,910,572,081 22,117,566,212 9,143,363 2,735,619,000 3,202,315,966 4,193,365 1,333,373,245 1,478,948,152 2,947,686 411,179,560 448,336,325 462,824 171,511,591 183,810,609 11,162,273 2,091,611,264 2,951,473,984 8,780,000 2,812,829,451 3,384,121,197 8,773,903 2,177,837,000 3,166,838,763 1,887,250 809,646,304 906,372,494 3,872,290 982,232,638 997,891,167 18,692,488 3,927,996,628 5,421,866,632 3,275,101 797,519,666 1,058,824,317 1,705,280 454,813,276 416,210,229 2,159,648 536,617,871 642,580,600 1,795,921 275,034,770 317,800,240 4,603,253 1,452,924,722 1,279,762,810 9,335,130 3,126,890,000 3,969,175,908 202,335,365 49,706,870,042 56,996,925,504

Chart No. I: Water Demand and Production

350 300 250 200

Millions

150 100 50 2007/2008 2008/2009

Water Demand

Water Production

P a g e | 10 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
Provider Name Arusha Babati Bukoba DAWASCO Dodoma Iringa Kigoma Lindi Mbeya Morogoro Moshi Mtwara Musoma Mwanza Shinyanga Singida Songea Sumbawanga Tabora Tanga Average UfW 2006/07 UfW 2007/08 22 46 53 55 38 46 37 46 32 27 29 33 45 37 38 43 35 43 28 27 38 UfW 2008/09 Metering Metering Metering Ratio 2006/07 Ratio 2007/08 Ratio 2008/09 100 40 64 45 100 72 42 26 63 80 100 85 50 94 72 44 72 51 79 100 69 100 54 69 55 100 83 43 56 72 82 100 86 51 96 85 46 76 53 79 100 74 100 89 89 67 100 86 43 53 76 92 100 89 51 96 71 72 80 59 80 100 80

33.3 45.6 59.4 56 30 48 45 62 34 33 31 34 52.7 36 42.6 35 33 44 28 27 40

26 44 52 57 44 42 34 40 30 24 32 27 39 44 36 35 40 44 27 25 37

10

P a g e | 11 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.

11

P a g e | 12 Table No. 4: Three Years Trend on Population Served and Hours of Service
S erved w W ith ater S erved w W ith ater

A verage H rs ou

A verage H rs ou

% P lation opu

% P lation opu

%P u op lation

%P u op lation

L g in th ivin e

L g in th ivin e

S ervice area

S ervice area

2007/2008

2008/2009

2007/2008

2008/2009

2007/2008

UWSA

Arusha Babati Bukoba DAWASCO Dodoma Iringa Kigoma Lindi Mbeya Morogoro Moshi Mtwara Musoma Mwanza Shinyanga Singida Songea Sumbawanga Tabora Tanga TOTAL

97 63 72 68 87 92 88 62 73 90 97 83 75 79 60 84 71 78 86 99 80.1

98 63 99 82 87 92 88 62 90 94 97 86 78 74 60 75 71 86 87 99 83.4

87 52 45 64 62 77 88 37 60 78 67 62 63 32 66 58 52 50 67 96 63.2

84 57 73 67 46 73 74 38 90 48 67 83 60 45 45 75 58 63 58 82 64.3

24 12 24 9 20 23 7 7 22 21 23 10 20 22 13 5 24 22 20 24 17.6

18.5 12 23 9 20 22 7 6 23 20 24 10 22 22 15 6 24 16 20 24 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.

2008/2009

12

P a g e | 13 Table No. 5a: Three Year Trend on WSDP Outcome and Output Indicators
Subsector Urban Water Supply and
Sewerage

Indicator

2006/2007 Output Outcome 78%

2007/2008 Output 255,169 1,571 30,474 Outcome 80.3%

2008/2009 Output 386,168 1,844 35,645 Outcome 82.8%

No. of HH connections No of public water points (kiosks) No. of HH connected to Sewerage facilities

219,965 1,446 13,649

17%

17.6%

18%

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 Small Towns UWSAs Dar es Salaam 53 84 68 Dec 2010 54 86 70 Dec 2011 55 88 71 Dec 2012 56 90 72 MKUKUTA 2015 57 95 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) (ii) (iii) The average hours of supply for all utilities has almost remained the reasonably high level (17 hours per day) over the past three years. The trend on UfW has decreased over the past three years from 41% to 37%. 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). 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.
13

(iv)

P a g e | 14 (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 costeffective 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. Delay in disbursement of funds from DPs and treasury has been a challenge that led to increase in cost during the implementation of projects; Lack of working facilities such as vehicles, computers, printers etc. at various levels of WSDP implementation especially in DUWSAs and Small Towns. 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. Inadequate monitoring and evaluation of physical implementation status of ongoing activities which are under construction this led to unrealistic information reported by utilities;

2. 3. 4.

5.

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
14

P a g e | 15 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. 2. 3. 4. 5. Rehabilitation and expansion of water supply in Singida township, Igunga water supply system , Improving Water Supply systems in Musoma and Bukoba, Implementation of Chalinze water supply project phase II, 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, On-going projects in Regional Centres Water Project -Phase II - Mwanza, Iringa and Mbeya, On-going projects in Tabora and Dodoma under (SECO), Immediate works to improve water supply systems for the towns of Babati, Sumbawanga, Lindi and Mtwara; And, Quick win projects to various Small Towns

6. 7. 8. 9.

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. 2. 3. 4. Rehabilitation of old aged water supply system, Metering and Reduction of Non Revenue Water activities, Sensitization of customers to properly usage of water, reporting of leakages and sanitation issues, and Timely submission of progress reports and emergencies from utilities so as to have proper records and follow ups.

15

P a g e | 16 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 LINDI BUKOBA SINGIDA BABATI SUMBAWANGA COMPUTERS 39,756,000 26,836,593 35,222,505.35 33,273,410 27,618,500 MOTOR CYCLES 21,029,895 0 0 0 0 MOTOR VEHICLES 0 0 0 0 0 WATER METERS 37,463,177 57,827,840 111,436,950 59,820,000 87,194,655 TOTAL 98,249,072 84,664,433 146,659,455 93,093,410 114,813,155

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

1 2 3 4 5 6

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.

16

P a g e | 17

Chart No. 3: Electricity cost trend for 3 years

Table No.8: Electricity cost trend for category C UWSA 1 BABATI 2 LINDI 2006/2007 33,920,000 40,260,000 2007/2008
52,451,720.00 43,475,870.00

2008/2009 41,250,343.73 46,056,972.79

Chart No. 4: Electricity cost trend for category C

17

P a g e | 18

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 2006/07 2007/08 2008/09 110.34 154 173.6 194 150 171 203 248 172 247.44 219.72 257.5

UWSA SUMBAWANGA BUKOBA KIGOMA SINGIDA

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 BABATI LINDI Expenses in millions 2006/07 2007/08 2008/09 48.9 64.8 102.32 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.

18

P a g e | 19 Table No. 11: Disbursed funds for supporting UWSAs

Payment to the on going consultant contracts Amount disbursed Tshs

Authority Moshi

Babati

Tabora

Tanga

Shinyanga

Description of the work Payment to the Consultant for detail Engineering design and preparation of tender documents in Moshi urban 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 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. 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. 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. Payment to the Consultant Ms Arab Consulting Engineer in association with MKonsult for work done from January to April, 2009 for detailed Engineering design and preparation of tender documents for Tanga city, Muheza and Pangani townships. Payment to the Consultant for detailed Engineering design and preparation of tender documents for Tanga city, Muheza and Pangani townships. Payment to the Consultant Ms. GIBB AFRICA (KENYA) for detail Engineering design and preparation of tender documents for Shinyanga, Maswa, Kishapu and Ushirombo townships.

568,961,514

Remarks Contract price is Euro 225,320.00 (Phase 1) and Euro 244,450.00 (Phase II). Total Euro 469,770.00

Consultants. Contract signed in July 2008 with M/s SEURECA of France in association with NETWAS Tanzania Ltd.

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

196,128,240

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 Arab Consulting Engineers in association with M-Konsult Tanzania Ltd

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

150,000,000

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

19

P a g e | 20
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. Payment to the Consultant Poyry in association with DCL for Supervision of Water Supply in Mtwara. Payment to the Consultant for detail Engineering design and preparation of tender documents in Mtwara urban Payment to the Consultant for supervision of construction works Payment to the Consultant for detail Engineering design and preparation of tender documents for Arusha urban and Ngorongoro. 306,107,651 Contract price: Phase 1A: EURO 265,240 , Phase IB EURO 215,900.00, Phase II -EURO 185,150 Contract price USD 861,875.00 M/s SEURECA of France in association with NETWAS Tanzania Ltd

Mtwara

150,000,000

M/s Poyry of Germany and DCL of Tanzania

100,000,000

Igunga Arusha

41,102,540 200,000,000 Contract price TZS 1,235,700,000

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

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

DAWASA

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

100,000,000

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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P a g e | 21

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 Governments 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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P a g e | 22

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 (%) 2 0 0 0.2 0 1 0 0 0 0.69 0 0 0 0 0 0 0 0 2.5 6.39 0 6.39 STAFF PER 1000 CONNECTIONS (W & S) 6.18 16.00 16.00 9.30 8.90 8.60 23.60 8.36 7.90 8.80 8.80 19.70 9.52 6.70 14.30 10.50 8.82 8.30 5.90 10.85 12.00 10.91

Arusha Babati Bukoba Dodoma Iringa Kigoma Lindi Mbeya Morogoro Moshi Mtwara Musoma Mwanza Shinyanga Singida Songea Sumbawanga Tabora Tanga Total [19] DAWASCO TOTAL

190 35 65 172 99 68 49 191 157 144 58 76 244 68 63 57 37 85 121 1,979 885 2,864

190 11 15 141 98 18 26 52 111 141 17 17 157 13 29 24 14 16 94 1,184 885 2,069

NIL 24 50 31 1 50 23 139 46 3 41 59 87 55 34 33 23 69 27 795 795

22.11 11.00 21.90 25.00 18.00 24.00 14.60 28.20 20.00 32.00 15.52 25.40 16.80 20.60 15.87 22.00 24.32 21.18 25.00 21.24 26.55 22.56

Chart No. 5: Number of Staff; % Female and Staff/1,000 Connections WSSAs

TOTAL STAFF (No) 300 FEMALE STAFF (%) STAFF PER 1000 ACTIVE CONNECTIONS

250

200

150

100

50

Dodoma

Bukoba

Arusha

Mtwara

Babati

Morogoro

Musoma

Shinyanga

Singida

Songea

Sumbawanga

Mwanza

Kigoma

Tabora

Moshi

Lindi

Mbeya

Tanga

Iringa

22

P a g e | 23

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

DAWASCO
1,000 885 900 800 700 600 500 400 300 200 100 26.55 TOTAL STAFF (No) FEMALE STAFF (%) STAFF PER 1000 ACTIVE CONNECTIONS

13.69

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.

23

P a g e | 24 Table No. 13: Revenue Collection Vs HIV Expenditure

TOTAL WATER & S EWERAGE S ERVICES S ALES (REVENUE) 3,764,438,945.00 255,909,960.00 657,118,222.00 3,231,055,186.00 1,779,242,049.00 380,320,170.00 196,339,784.00 2,114,895,248.00 3,383,420,928.00 2,003,771,837.47 895,374,064.00 997,431,602.00 5,431,317,692.05 1,058,814,315.00 422,446,007.00 734,990,942.00 317,807,240.00 1,071,601,289.00 3,541,247,438.00 3 2,2 37,542 ,9 18.52 20,950,088,490.84 5 3,1 87,631 ,40 9.36 TOTAL ARREARS (TS HS ) 972,001,561.20 6,707,620.00 159,072,620.00 198,890,324.00 501,872,364.00 417,572,718.20 44,214,677.00 786,655,739.00 532,074,094.94 505,504,108.48 262,640,301.90 243,618,667.46 1,796,126,612.66 150,389,486.00 67,500,715.00 199,133,955.00 78,260,700.00 596,377,864.00 438,545,585.00 7,95 7,1 59,713 .84 7,957 ,15 9,713 .84 290,500 920,000 661,000 494,000 4,670,000 14 ,45 2,5 67 .00 14 ,45 2,5 67.00 HIV EXPENDITURE (TS HS ) 982,100 100,000 1,200,000 515,000 1,000,000 447,000 2,882,967 290,000 % HIV EXPENDITURE TO REVENUE 0.03 0.02 0.04 0.03 0.26 0.23 0.14 0.01 0.03 0.09 0.21 0.05 0.13 0 .04 0 .03

UWS A A rus ha Babati Bu ko ba Do doma Iring a Kigoma Lind i M beya M orog oro M os hi M twara M us oma M wanza Shin yang a Sing ida Song ea Sumbawanga Tabo ra Tang a S ub Total DA W A SCO TOTAL

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 UWSAs 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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P a g e | 25 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 couldnt 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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P a g e | 26 Table 14: Summary of the Evaluation Report

No UWSA SCORES MDs Evaluation Quantitative (%) 84.1 Qualitative Good

Board Evaluation (%) 95

Remarks/Comments

ARUSHA

SHINYANGA

85

Good

81.7

MUSOMA

94

Good

96

IRINGA

85

Good

92

5 BABATI 98.5 good 100

6 MBEYA 89.7 Good

TANGA

85

Good

94.6

BUKOBA

87

88.2

Nine members participated in the MDs evaluation exercise. An adhoc committee was not formed All ten members of the board participated in the self evaluation exercise. Five members form an adhoc committee Eight members participated in the self evaluation exercise. The MDs evaluation was not properly done as per MoU. Only one form was submitted without any information. 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. Seven members of the board participated in the self evaluation exercise. An External consultant compiled the evaluation report as required Doesnt; state if the adhoc committee was formed 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 Seven members out of ten participated in the self evaluation exercise All 10 members of the board participated in the evaluation exercise.
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SCORES MDs Evaluation Quantitative (%) 9 KIGOMA 71.6 Qualitative

No

UWSA

Board Evaluation (%) 69

Remarks/Comments

Average

10

SWANGA

88.5

Good

83

11

DODOMA

82

Good

91.1

12 MOROGORO 90 Good 74

13 SONGEA Not done Not done 91.7

14

LINDI

Not given

Not given

81.3

15

MTWARA

88

Good

85.7

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 Seven members participated in the evaluation exercise. The report was compiled by an external consultant as required in the MoU 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 Five members of the board formed an adhoc committee for the evaluation of MD Seven Members participated in the self evaluation exercise. 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 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. It is stated that five members of the board performed the MDs evaluation exercise, how ever two quantitative evaluation forms and
27

P a g e | 28
SCORES MDs Evaluation Quantitative (%) Qualitative

No

UWSA

Board Evaluation (%)

Remarks/Comments

16

MWANZA

78

Good

97.9

17

TABORA

61

average

81

one qualitative form was submitted. Eight members of the board participated in the Directors self evaluation exercise. Eight members performed the MDs 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. Adhoc committee of five members of the board performed the MDs 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 UWSAs 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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P a g e | 30 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 DODOMA DAWASCO IRINGA MBEYA MOROGORO MOSHI MTWARA MWANZA SHINYANGA TABORA TANGA MUSOMA BUKOBA KIGOMA SINGIDA SONGEA SUMBAWANGA LINDI BABATI Annual Report 2008/2009 Submitted (14/10/2009) Submitted (30/09/2009) Submitted (21/11/2009) Submitted (30/09/2009) Submitted (29/09/2009) Submitted (3/11/2009 ) Submitted (30/09/2009) Submitted (05/10/2009) Submitted (03/11/2009) Submitted (20/11/2009) Submitted (15/10/2009) Submitted (01/09/2009) Submitted (08/12/2009) Submitted (12/08/2009) Submitted (15/09/2009) Submitted (12/10/2009) Submitted (10/11/2009) Submitted (12/10/2009) Submitted (12/10/2009) Financial Statements (ending 30th June,2009) Submitted (14/10/2009) Submitted (30/09/2009) Submitted (11/10/2009) Submitted (30/09/2009) Submitted (29/09/2009) Submitted (01/10/2009) Submitted (30/09/2009) Submitted (22/09/2009) Submitted (08/10/2009) Submitted (20/11/2009) Submitted (15/10/2009 Submitted (01/09/2009) Not Submitted Submitted (12/08/2009) Submitted (15/09/2009) Submitted (25/11/2009) Submitted (10/11/2009) Submitted (12/10/2009) Submitted (12/10/2009) Remarks Late submission Timely submission Late submission Timely Submission Timely submission Late submission Timely submission Timely submission Late Submission Late Submission Late Submission Late submission Timely submission Late Submission Timely Submission Timely Submission Late submission Late submission Late submission Late submission

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Table No. 15b:

UWSAs

Three Year Trend on Audited Accounts of UWSAs

Date Account Management Submitted for Audit {Sept. Report/ Responses Available (yes/no) Reason(s) for Qualification

TYPE OF AUDIT OPINION

2006/2007 Category A ARUSHA

2007/2008

2008/2009

End = Standard)

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 IRINGA MBEYA MOROGORO MOSHI MTWARA MWANZA SHINYANGA TABORA TANGA Category B BUKOBA KIGOMA

Unqualified Unqualified Unqualified Unqualified Unqualified Qualified Unqualified

Qualified Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified

Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified

Standard Standard Standard Standard Standard Standard Not Standard Not Standard Not Standard Not Standard Not Standard Standard

YES YES YES YES YES YES YES YES YES YES YES YES

Unqualified Unqualified Unqualified Unqualified Unqualified UQR Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified Qualified

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 MUSOMA SINGIDA

Unqualified Unqualified UQR Unqualified Unqualified UQR Qualified Qualified Unqualified

Not Standard Standard Standard

YES YES YES

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UWSAs TYPE OF AUDIT OPINION Date Account Management Submitted for Audit {Sept. 2006/2007 SWANGA Category C LINDI BABATI DAWASA 2007/2008 2008/2009 UQR End = Standard) Not Standard Report/ Responses Available (yes/no) YES Reason(s) for Qualification

Unqualified Unqualified

Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified Qualified Qualified

Standard Standard Not Standard

YES YES 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. 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.

DAWASCO

Qualified

Qualified

Qualified

Not Standard

YES

Opinion Status Unqualified Qualified Not Completed

Note:

2006/2007

2007/2008

2008/2009

18 3 -

17 4 -

13 4 4

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 Suppliers 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
OUTSTANDING ENERGY BILLS (TSHS) 5,428,463 9,828,536.90 348,989,331.50 95,876,864 29,135,492.61 139,510,821 53,980,554.66 11,576,337 22,664,532 82,883.60 4,149,741.55 721,223,558 DEBTS TO SUPPLIERS (TSHS) 33,904,590.60 36,676,540.00 107,582,087.55 10,096,000.00 90,973,680.00 358,326,417.52 84,130,680.00 34,223,861.00 86,004,104.00 38,395,137.17 23,716,691.00 66,283,120.57 970,312,909 TOTAL DEBTS (TSHS) 39,333,053.90 9,828,536.90 36,676,540.00 456,571,419.05 10,096,000.00 90,973,680.00 358,326,417.52 180,007,543.64 63,359,353.61 225,514,925.00 53,980,554.66 49,971,474.60 46,381,223.00 82,883.60 70,432,862.12 1,691,536,468 GOVT. INSTITUTION ARREARS (TSHS) 56,186,658.09 2,366,950 53,386,431 67,116,370 158,741,461 13,558,660 118,625,435 83,349,121 121,320,103.25 84,258,614 64,053,800 401,639,501.66 60,058,234 7,306,485 76,789,936 39,820,000 367,630,446 83,211,363 1,859,419,569 PRIVATE ARREARS (TSHS) 915,814,903.11 4,340,670.00 105,686,189.00 131,773,954.00 258,831,257.20 30,656,017.00 668,030,304.00 448,724,974.40 384,184,005.23 178,381,687.90 179,564,867.45 1,394,487,111.00 90,331,252.00 60,194,230.00 122,344,019.00 38,440,700.00 228,747,418.00 355,334,222.00 5,595,867,781 TOTAL ARREARS (TSHS) 972,001,561.20 6,707,620.00 159,072,620.00 198,890,324.00 417,572,718.20 44,214,677.00 786,655,739.00 532,074,094.94 505,504,108.48 262,640,301.90 243,618,667.46 1,796,126,612.66 150,389,486.00 67,500,715.00 199,133,955.00 78,260,700.00 596,377,864.00 438,545,585.00 7,455,287,350

UWSA Arusha Babati Bukoba Dodoma Iringa Kigoma Lindi Mbeya Morogoro Moshi Mtwara Musoma Mwanza Shinyanga Singida Songea Sumbawanga Tabora Tanga DAWASCO TOTAL

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5.0 5.1

OBSERVATION AND RECOMMENDATIONS 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. 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. 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. The Performance of the credit policy in many of the UWSAs was not impressive. On outstanding total debts that include Energy and Suppliers bills, Kigoma reported the highest of Tshs 456,571,419.05 followed by Moshi with Tshs 358,326,417.52. All UWSAs could not submit the Boards and MDs 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 MDs evaluation report were properly
34

(iv)

(v)

(vi)

(vii)

P a g e | 35 filled and detailed except for Sumbawanga, Mtwara, Iringa and Lindi; while Singida could neither present Boards self assessment nor MDs 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. Preparation and Submission of reports including project implementation and audit reports should be done in adherence to the set formats and standards. 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. All UWSAs should prepare and follow up the Credit Policy and ensure that the standard accounts payables and accounts receivables are adhered to. 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). All UWSAs are required to prepare their financial statements in accordance to IFRS and to ensure that they receive Unqualified Opinion. There is a need for all UWSAs to put more efforts and increase their contributions for covering HIV/AIDS interventions.

(ii) (iii)

(iv) (v)

(vi) (vii)

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P a g e | 36 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 Output Status as per December 2009 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

Planned Activities

C1.1 Office Rehabilitation: 7 offices rehabilitated Procure a contractor for rehabilitating office buildings for UWSAs of Bukoba, Iringa, Kigoma, Lindi, Musoma & Singida, Shinyanga. DUWSAs
82 improved made available offices

Construction completed for Misungwi and Vwawa DUWSAs. Acquiring of title deeds for other DUWSAs underway. Tender document made Design of offices ready but above the budget. C1.2 Construction of new office: available and offices UWSAs advised to re-phase to meet the Procure a consultant to prepare designs constructed, furnished allocated fund. & tender documents and supervise and commissioned construction for UWSAs of Babati and Sumbawanga. 2 Station wagon 22 Motor vehicles were procured for 11 C1.3 Vehicles: vehicles made available UWSAs that is two for each. Procure a supplier (s) of (2) in each UWSA

vehicles for 10 category B and C UWSAs Iringa, Songea, Babati, Lindi, Mtwara, Shinyanga, Singida Sumbawanga, Bukoba, Kigoma and Musoma 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 4 motorcycles made 40 Motor cycles were procured for 10 available in each UWSA UWSAs, each 4 motorcycles as planned.

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. , DUWSAs

Motor cycles available 120 Motorcycles for (100) DUWSAs/STs/NPs have been purchased and handed over to in each DUWSA
selected DUWSAs.
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Planned Activities Planned Output Status as per December 2009 4 computer sets made Computer sets were procured for 11 C1.5 Computers and accessories available for each UWSAs as planned. Procure a supplier(s) of (4) UWSAs

computers and accessories for the UWSAs of Iringa, Lindi, Bukoba, Musoma, Singida, Songea, Mtwara, Babati, Shinyanga, Sumbawanga and Kigoma DUWSAs
140 computer made Only few purchased so far, the final available and (1) set procurement will be implemented after distributed to each construction of offices. DUWSSAs Total of 78,000 Water A total of 19,654 water meters (including meter/ ultrasonic flow bulky water metres) supplied to the UWSAs of meters for 13 UWSAs Iringa, Songea, Babati, Lindi, Mtwara, & DAWASA. GIS Shinyanga, Singida Sumbawanga, Bukoba and are installed, Musoma, Morogoro, Shinyanga and Tabora. Sewer emptier truck and sewer cleaning tools mappings are made were purchased for Dodoma UWSA only.

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)

available. Training conducted for 16 UWSAs. Sewer cleaning tools for 5 UWSAs and DAWSA are made available
The MIS established, developed & equipment made available.

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 C1.7 Technical Assistance: Procure a consultant to prepare designs & tender documents and supervise construction.

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

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, (i)Supervision of the Sumbwanga and Singida 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 Study reports and tender documents to UWSAs of Tender Documents Moshi, Kigoma, Arusha, Tanga, Dodoma, Morogoro, Shinyanga, Tabora Studies and preparation of tender Study reports and documents in Mwanza, Mbeya, Tender Documents Iringa, Musoma and Songea Singida: Water source study Study reports and (Basuto & Ndurumo) and Tender Documents preparation of detailed designs and tender documents for sewerage Seven Towns Urban Upgrading Feasibility study, Programme: (ACP-EU water design and tender facility programme) feasibility documents study, design and preparation of tender documents for Babati, Sumbawanga, Bukoba, Musoma, Lindi, Mtwara and Kigoma). DUWSSAs Design water supply projects in 14 townships and prepare tender documents C1. 8 Training Organize and conducting (6 ) trainings in technical, computer/GIS and accounting fields: Study reports and Tender Documents

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

Under procurement (negotiation stage)

of

consultant

On going construction works included drilling of deep boreholes. Basuto water source study will be conducted in 2nd Phase of WSDP Procurement of consultant at final stage. Contract will be signed before April 2010.

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.

60 training events Professional skills have been provided to 300 conducted and staff staff from the UWSAs, DUWSAs and NPs in trained 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 ( C1.8 Hygiene/handwashing v promotion/sanitation schools ) Sanitation marketing, school Planned Output Status as per December 2009 Promotional / EIC Terms of reference to procure a consultant who materials produced and will prepare training material for Hygiene, disseminated 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. Funds for incremental Tshs 1.437 USD mil were utilized to cover costs are available incremental cost for UWSAs, DUWSAs/ST and NPs.

sanitation programme and hand washing programme

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

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 iii) Expansion and WSS services Study report of in Dar es Salaam (US$175 million) Kidunda Dam, construction of Kidunda dam to designs and tender regulate Ruvu river, dedicated trunk documents are main to University Reservoir, available. The augmentation of treatment capacity extended intake, and expansion of network to unserved treatment works and areas Status as per December 2009

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.

55km of rising (1400mm) available.

Development of Kimbiji and Mpera parallel ground water for DSM - supervision main consultant and contractor procurement are 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 Morogoro: New intake For WSDP/basket fund consultant are at final WSS services in 2 Group II Towns constructed, improved stage of completion the study and preparation (US$15.0 million) - Morogoro and water treatment plant & of tender document. Tabora; water quality are available. New sewer Tabora under SECO Contract for installation connections are of Bulk water meter at Igombe station, zone available. water meter and construction of meter Tabora: 1700 new chambers is 50% completed; design for other connections and 25km activities ongoing.

distribution pipeline are available Morogoro under MCC: Tender under SECO: New sewer prequalification stage (advertised). It is connections are expected that construction and supervision. available Designs & Construction will cover rehabilitation of
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Planned Activities Planned Output Status as per December 2009

improved intake Mafiga water treatment plant and construction (Dam), treatment plant of new water treatment plant at Mambogo, are available repair of water tanks.. Consultant also
expected to submit tarrif study report in February 2010. (iv) Rehabilitation and expansion of 9000 connection and Design under way for Arusha, Moshi and WSS services in 4 Group III Towns 68 km water supply Tanga. Dodoma- under procurement of (US$52.5 million) Arusha, Dodoma, also 18km and more contractor for construction of water supply and Moshi and Tanga than 1140 connection sewerage works.

of sewerage made.

DodomaSECO 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

(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.

Tshs 893,762,500 were disbursed to the UWSAs of Musoma, Babati, Sumbawanga, Lindi, Bukoba, Singida and Kigoma for implementation of quick win projects. 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, MugangoKiabakari, Wangingombe, 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 Kahama-Shinyanga project - construction main from Solwa to completed as planned. Kahama and off-takes to villages
Construction of water supply distribution network underway.

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