Clustering study and capacity building services

Project details
Country: 
United Republic of Tanzania
Beneficiary: 
Energy and Water Utilities Regulatory Authority
Donor organisation: 
Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH
Associated enterprises: 
Dorsch Consult
Department: 
Water
Project volume: 
1,427,405 €
Currency: 
€
Value of services: 
1,200,000 €
Start of project: 
August, 2008
End of project: 
July, 2011
Project description: 

Tanzania was undergoing a major reform of the water sector in line with the National Water Sector Development Strategy (NWSDS). The future institutions of water supply and sewerage services are commercial Water Supply and Sewerage Authorities (WSSA), regulated by the Energy and Water Utilities Regulatory Authority (EWURA).

In this context, a nationwide study of options for clustering was carried out, covering all existing Urban Water Supply and Sewerage Authorities, 98 gazetted and eight not yet gazetted Town Water Boards and six national water schemes.

In phase 1, the study aimed at identifying and agreeing appropriate clustering options as well as identifying two model clusters where implementation of the new institutional framework approach can be undertaken on a pilot basis.

In the second phase of the project (since June 2010), the two selected clusters (Tanga & Morogoro) will be supported in their transition to a clustered WSSA as well as in setting up their business plans and harmonising management, staffing and operation of the cluster entities.

Service description: 

Phase 1 (08/2008 – 12/2009)

  • Definition of suitable criteria for clustering that aim at commercial viability and are agreed with stakeholders;
  • Proposition of potential clustering arrangements and fine-tuning with stakeholders;
  • Identification of two model clusters for implementation; and
  • Draft of a Transition Plan for all clusters.

Phase 2 (06/2010 – 07/2011)

  • Organisation of national and local awareness and consensus building meetings and establishment of Cluster Implementation Teams;
  • Preparation of modified organizational charts and job descriptions and an outline of a “Memo­randum of Understanding” between stakeholders;
  • Preparation of draft business and business strategic plans for all branches within the two model cluster;.
  • Preparation of work plans to transfer the commercial / customer service systems to the branches, including billing;
  • Customer data collection survey in all 8 branches;
  • Guidance in the design of a modified financial structure by introducing profit centres / cost centres as well as in the compilation of a revised chart of accounts;
  • Assessment of financial management systems and status;
  • Tariff review and proposal for all branches;
  • Introduction of a paper-based maintenance management system on branch level and a computer based MMS at UWSA level;
  • Basic training on leak detection and water loss control;
  • Preparation of asset registers and asset valua­tions for all branches;
  • Definition of Immediate Works Requirements;
  • Development of Terms of Reference for feasibility studies for water infra­structure schemes of Mikumi, New Mvomero and Korogwe;
  • Assessment of the existing IT environment for Morogoro and Tanga and review of the existing computer software for handling necessary changes; and
  • Preparation of designs and cost estimates (BoQ) for the branch new offices.
Currency: 
€