Supporting the Policy Enabling Environment for Development

Water tariff model

DNAAS, AFORAMO and CRA requested the support of SPEED+ to develop a tariff model to establish tariffs for Private Water Suppliers (FPA). SPEED + will hire consultants to develop a tariff model for projecting and calculating tariffs for the PWP, with a broad consensus of stakeholders, built through a broad dialogue with AFORAMO and participatory consultation with public and private stakeholders. The tariff model will guarantee the recovery of costs for operations and infrastructure development; quality of service and fairness for consumers; incentives for efficient water use; return on investment and reasonable profit margin; and stable and simple to understand costs for consumers. The tariff model will be accompanied by a set of implementation and training tools that will enable CRA and AFORAMO to successfully complete an initial cycle of tariff adjustment. The consultants will also assist in the creation of a PWP Service Assessment Report Template and benchmarking system to manage the competitiveness of the FPAs and encourage a virtuous cycle of improving efficiency and effectiveness. After approval by DNAAS, CRA and MOPHRH, SPEED+ will help in disseminating the model to FPA and potential investors. The study is expected to begin in early September 2017, with results expected by mid-2018.