Sound and sustainable water supply and sanitation services for all

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3 VISION Sound and sustainable water supply and sanitation services for all MISSION STATEMENT NWASCO s mission is to regulate the services of the providers in the water supply and sanitation sector in urban areas focusing particularly on: Enforcement of standards (efficiency, effectiveness levels of service and investment etc.) Promotion of market competition Protection of consumers, and Extension of services to peri-urban areas

4 ANNUAL REPORT FOR THE YEAR 2004 TABLE OF CONTENTS Vision and Mission Statement 1 1. Chairman s Statement 4 2. Report on the 2004 Activities Regulating Providers Licensing Guidelines Monitoring Complaints Mediation Tariff Reviews Sector Development Commercialisation of Remaining Local Authorities Support to Commercial Utilities Devolution Trust Fund (DTF) POIS Water watch Groups Internal Organisation & Development Internal Development Council Meetings The Public and Private Infrastructure Advisory Facility External Relationship Participation and Exchange at Local & International Levels Publicity Constraint and Outlook for Constraints Outlook for List of Licensed Providers Audited Annual Financial Statement for

5 Nwasco Council Vice Chairman Mr. Muyunda Ililonga Zambia Consumers Association Chairman Dr Cosmas Musumali Economics Association of Zambia Dr. Simon K Miti Ministry of Health Mr Peter Lubambo Ministry of Local Government & Housing Mr. Fumu Mondoloka Zambia Association Chambers of Commerce & Industry Mr. Richard Moonze Chizyuka Ministry of Finance and National Planning Mr George Kapelwa Lipimile Zambia Competition Commission Ms. Nana Mudenda Ministry of Justice Mr. Edward H Zulu Environmental Council of Zambia Mr. Benny Ngalande (Late) Local Government Association of Zambia Mr. Hastings Chibuye Water Development Board Mr. Arthur Bob Litana Businessman Mr. P M Chipanda Ministry of Community Development & Social Services Mr. Adam Hussen Department of Water Affairs MEWD Mr. Munkalapaminga Z Ng ambi Businessman 3

6 1.0 CHAIRMAN S STATEMENT During the year 2004 the National Water Supply and Sanitation Council (NWASCO) clocked four years since inception and start of operation. In these four years, NWASCO has become a fullyfledged regulatory institution with the requisite tools developed to guide service providers in ensuring improvements in service delivery and overall sustainability. There has been an increased consumer participation in the sector mainly through Water Watch Groups. For example, the increase in consumer complaints against unsatisfactory quality of service is an indication of public confidence in the established mechanisms for the channelling of grievances and taking action. The backlog of improvements required to bring the quality of service delivery to an acceptable level remains a major challenge more especially given the limited investment outlays into the sector over the past decade. The commercial utilities are, therefore, all in dire need of investment to improve the quality of service delivery. The sectors' service providers are yet to reach full operation and maintenance costs recovery. This is mainly due to the relatively lower levels of collection efficiency and high prevalence of unaccounted-for water. However, a mechanism has been put in place to ensure that the service providers reach full cost recovery by improving on their performance and systematic adjustment of tariffs to meet justified costs. To this effect, NWASCO has annually published sector progress report which includes the performance comparison report of the service providers in the country. The latest being the 2003/4 report and these are made available to the public. Provision of water and sanitation services to the poor in the peri-urban areas remains a daunting task. Concerted efforts in these areas would change the face of the water sector in Zambia and go a long way in alleviating poverty and contributing to attainment of the Millennium Development goals on water and sanitation. The efforts of NWASCO, through the Devolution Trust Fund, in supporting service providers to service the urban poor, therefore, requires support by all key stakeholders. I wish to commend all the Council Members, Management and Staff for the tireless work and support during this financial year. Thank you. Dr. Cosmas Musumali 4

7 2.0 REPORT ON THE 2004 ACTIVITIES Introduction The National Water Supply and Sanitation Council (NWASCO) was established under the Water Supply and Sanitation Act No. 28 of It has been st operational since 1 June 2000 following the appointment of NWASCO DIRECTOR management. It has an establishment of 13 members of staff. However, it did not operate at full establishment due to resignations by two members of staff. The major focus for the year was the monitoring of providers through scheduled inspection visits and spot checks with a view to ensure continued improvements in service delivery and improved services to the poorly served peri-urban areas. It also developed guidelines on Water Quality that are to be implemented by the providers. During the year NWASCO also produced the second Urban and Peri-Urban Water Sector Performance Report, which mainly highlights the performance of the Commercial Utilities (CUs), Local Authorities and other providers as well as the performance of the sector in general. operated smoothly. Following the issuance of the WSS (Devolution Trust Fund) Regulations Statutory Instrument No. 50 of 2004, its operations were streamlined to make it more distinct from NWASCO's functions as the regulator. It also now has three full-time staff. The two pilot projects on the construction of kiosks under Mulonga and Nkana Water and Sewerage Companies were completed and two other projects commenced under Kafubu and Mulonga Water and Sewerage Companies. NWASCO continued to support the Water Watch Groups (WWGs) and managed to set up three additional WWGs in Chingola, Kitwe and Kasama. This is to enhance consumer involvement in the regulatory process. NWASCO's main source of funding in the year under review has been from licence fees from the providers and grants appropriated by Parliament through the Ministry of Energy and Water Development. Other funds mainly for capacity building and other specific activities were sourced mainly from German Technical Assistance (GTZ). The NWASCO Information System (NIS) became operational and providers, mostly CUs, are submitting their annual reports using the system. The database for all the providers has been updated. This has greatly enhanced NWASCO's capacity to handle and manage the growing information. The Devolution Trust Fund (DTF), whose main objective is to provide an incentive to providers to extend their coverage to low income areas through the provision of funds, Overhead tanks at Kasama Water Works 5

8 2.1 Regulating Providers Licensing The Council approved the application for the transfer of licenses from ten (10) Local Authorities in Northern Province to Chambeshi Water and Sewerage Company. The outstanding licence fees arrears were also transferred to the company. Zambia Revenue Authority (ZRA) complied with all the licensing requirements and was issued with a Licence. They have since entered into a lease agreement with Southern Water and Sewerage Company who are to manage their schemes for a period of five years. Due to the chronic water problems in Kabwe, NWASCO suspended the licence for Kabwe Municipal Council and consequently the Minister of Local Government and Housing appointed Nkana Water and Sewerage Company as Statutory Manager for an initial period of one year. The appointment of the Statutory Manager is in line with the provisions of the Water Supply and Sanitation Act No. 28 of Since the take over of operations, the service has significantly improved. Registration forms were developed and have since been given to all small unlicensed schemes. Licence Fees NWASCO continued its efforts to meet all its operational needs from the monthly licence fees. This is critical for the autonomy of NWASCO. Currently NWASCO collects one percent of the service providers' turnover and receives subventions from Government and German Technical Cooperation (GTZ). The average collection rate for the year was 75%. Quality of Service Generally, service delivery by the Local Authorities has been declining due to deteriorating infrastructure, lack of resources i.e. financial and human skills, compounded by their inability to pay salaries resulting in strike actions. This has led to a number of them reducing service hours by as much as 70% and a few such as Nyimba District Council have completely ceased to provide the services due to lack of money for diesel for their power generator. This is in contrast to Commercial Utilities whose quality of service has generally improved in terms of hours of supply, quality of water and increase in service coverage Guidelines NWASCO continued working on developing the Guidelines on Accounting and on Water Quality. The Water Quality guidelines were finalised after consultations with all the CUs and other stakeholders such as the Ministry of Health and have since been issued. Consultations were also held with all CUs on the Accounting Guideline and the same will be finalised next year. The process of finalising the second Service Level Agreements and Service Level Guarantees, for five CUs whose initial agreements are expiring during the first quarter of 2005 was completed. The agreements are scheduled to be signed during the first quarter of Monitoring Detailed inspections were carried out on Western, Lusaka and Southern Water and Sewerage Companies in line with the work plan for inspection and verification exercises 6

9 for all CU's and some local authorities. Directives were issued to the companies in areas where they were not complaint, and a time frame set for them to rectify the identified areas. It was noted, however, that Western Water and Sewerage Company was striving to improve services despite operating under difficult conditions. Southern Water and Sewerage Company was placed under a Special Regulatory Supervision Programme to ensure compliance to corporate governance and closely monitor their general performance. This followed financial mismanagement and poor corporate governance, which threatened its viability. The German Government who have been sponsoring the company's major investments had been equally concerned about the management of the company. This resulted in the resignation of the entire Board of Directors and the dismissal of the Managing Director. A new Board was appointed in October and a new Managing Director engaged at the end of the year. A financial inspection for Chipata Water and Sewerage Company was conducted in March/April 2004 following a request by the shareholders. This followed complaints regarding financial mismanagement as also evidenced from the information contained in the company's Annual Report. Following the report, the company was placed on a Special Regulatory Supervision Programme under which NWASCO was to attend all their board meetings to ensure compliance to corporate governance and to improve management accountability. The Board of Directors was reconstituted and the Managing Director demoted. There has since been some improvements in the operations of the company. NWASCO undertook a detailed inspection and verification visit to AHC Mining Municipal Services (AHC-MMS) and Mulonga Water and Sewerage Company from 13 to 17 September This followed the numerous complaints from customers relating to meter readings, billing and handling of customer complaints. Directives were issued to both companies in the areas they were not compliant and a time frame given in which to address them. Mulonga managed to address all the issues raised while AHC MMS is yet to address the issues of poor water quality and the high bills Complaints During the year the number of reports reaching NWASCO increased as an indication of the publics' awareness of the existence of the regulator. The complaints particularly from the Copperbelt were regarding high meter readings, erratic water supply, poor water quality and the slow pace of handling consumer complaints. There were also complaints from Luanshya consumers who were being billed despite not receiving a service. As a result of the complaints, NWASCO also undertook inspection visits to Mulonga and AHC-MMS to follow up the same. AHC was directed to test the meters and to address the issue of poor water quality. So far, some measures have been taken but due to the needed investments, it is expected that the water quality problems would only be fully addressed by the end of the year. NWASCO received a complaint from Chunga residential in Lusaka concerning water contamination in January A site visit and laboratory tests confirmed the report and it was established that the same was due to the cross contamination from the sewerage system arising from a case of vandalism. A press statement regarding the same was issued by the NWASCO Chairman and Lusaka Water and Sewerage Company was given directives on the resolving of this issue and the same has since been addressed. There were also a number of complaints from areas serviced by Lusaka Water and Sewerage Company regarding the slow pace of effecting new connections. The Lusaka, Chingola and Kitwe Water Watch Groups also followed up various 7

10 complaints raised by consumers in their respective areas. Most of these complaints were on erratic water supply, billing and delay in effecting new connections. Water Supply Interruptions There was a six day water supply interruption affecting the whole Western Province in March due to ZESCO power failure. Only Mongu and Kaoma had rationed water while the remaining towns had to use alternative sources such as streams and wells. Zambezi District under North Western Water and Sewerage Company had interruption of supply for two days in April and five days in September The interruptions were also caused by a breakdown of the ZESCO generator. The same problem also occurred in Kabompo District. Mulonga Water and Sewerage Company also reported a two day water supply interruption affecting Chililabombwe due to power failure (Transformer). There is therefore an urgent need for ZESCO to connect these areas (Western and North Western Provinces) to the national grid as the problems with generators do not seem to be resolved. A number of water supply interruptions during the previous years were also attributable to the persistent power failures. Another water supply interruption affecting Kitwe was reported by Nkana Water and Sewerage Company. This resulted from the acid spill into the Mindolo stream which contaminated their Kafue intake plant. The company therefore shut down the plant until the acid spill was cleaned up and the acidity of the intake water had normalised. Water Quality Following the persistent water quality problems, AHC-MMS was directed to reduce domestic customer tariffs by 60% of the approved fixed charge for water supplied to Chingola, Chililabobwe and Mufulira towns until the water quality improves. AHC-MMS committed itself to improve the water quality in these areas by end of January 2005 after the commissioning of the refurbished clarifiers and filters Mediation NWASCO mediated between Southern Water and Sewerage Company and Sun International Hotels over the dispute on the tariff to be charged for water and sewerage services to Sun Hotels in Livingstone. A compromise was reached and the contract between the two for bulk water supply was finally signed Tariff Reviews The Council considered and approved the tariff adjustments for AHC-MMS, Chambeshi, Kafubu, Mulonga, North Western and Western Water and Sewerage Companies and for six Local Authorities, namely, Kabwe, Kafue, Kapiri Mposhi, Katete, Luangwa and Serenje. The tariff adjustment request from Nkana Water and Sewerage Company was not considered because the Company failed to send the information requested for in time. The request from Lusaka Water and Sewerage Company was rejected because the Company had failed to meet the conditions that were given with their last tariff adjustment in NWASCO also reviewed the tariff adjustment process to make it more transparent and performance based and now includes a modified public hearing requirement. 8

11 2.2 Sector Development Commercialisation of the Northern Province Local Authorities NWASCO concluded the work on the establishment of the Chambeshi Water and Sewerage Company. NWASCO attended a consultative meeting involving Ministry of Local Government and Housing, Development Cooperation Ireland (DCI) and Chambeshi Water and Sewerage Company. The meeting was mainly reviewing the progress that had been made in the commercialisation process and the possible areas where both DCI and Government could give further assistance Support to Commercial Utilities NWASCO organised and attended the Corporate Governance workshops for Chambeshi and Chipata Water and Sewerage Companies in May and June respectively. NWASCO requested the office of the Auditor General to audit the accounts of Chipata and Western Water and Sewerage Companies that had not had their accounts audited for a long time and since inception, respectively. The companies are to pay the audit fees but these are much lower than those that are normally charged by private institutions and are therefore manageable. NWASCO was part of the Environmental Council of Zambia (ECZ) verification team to Mongu where Western Water and Sewerage Company had objected to a filling station project which had been approved by ECZ and Mongu Municipal Council due to its proximity to the water supply well field as it was posing the risk of contamination. After reassessing the situation, ECZ gave the developer additional conditions to safe guard the water supply well field area from contamination Devolution Trust Fund (DTF) GKW was awarded the contract for the baseline study under DTF in April This followed the evaluation of the technical and financial bids submitted for the study. The st official launch of the study took place on 1 June 2004 at which the Deputy Minister of Energy and Water Development Stephen Manjata officiated. The consultant released the Inception and the Implementation Concept Reports in September and October 2004 respectively.the Inception report was preceded by two inception workshops in Lusaka and on the Copperbelt for stakeholders to consider preliminary issues arising from the consultations. The Baseline study established three field teams for data collection. The three field data collection teams have so far covered Central, Luapula, North Western, Northern, Eastern, Southern and Western provinces and part of Lusaka and Central Provinces. The DTF continued monitoring the two projects under Mulonga and Nkana Water and Sewerage Companies, for extension of services to peri urban areas under their respective service areas. The project for Nkana WSC was commissioned in June 2004 and the one for Mulonga in July Two additional projects commenced for Kafubu and Western Water and Sewerage Companies. The projects involve construction of nineteen kiosks in Ndola by Kafubu Water and Sewerage Company and sixteen kiosks in Mongu by Western Water and Sewerage Company. The projects commenced in June 2004 and are expected to be completed by June 2005.They are expected to benefit 42,500 people in Ndola and 28,000 people in Mongu. So far six kiosks have been constructed in Ndola and another five kiosks have been completed in Mongu. All the eleven kiosks in Ndola and Mongu are 9

12 operational and contributing to revenue for the respective utilities as well as provide access to water supply for the unserviced urban poor communities. The cost of US$ 188,288 for the two projects was sourced from DANIDA. In line with the DTF Statutory Instrument No. 50 of 2004, the DTF Committee has been put in place to manage the Fund. Two DTF additional staff, a socio-economist and a water engineer, were engaged during the second quarter Performance Oriented Incentive Scheme NWASCO continued to coordinate the German funded Performance Oriented Incentive Scheme (POIS) which is aimed at improving human resources management and development in Commercial Utilities (CUs). As a way of capacity building, a fourth Training of Trainers course was held for the four participating CUs under POIS in March 2004 at Lima Motel in Chingola. A total number of 11 participants attended the three weeks course. These participants were from Kafubu, Nkana, Southern and North Western Water and Sewerage Companies. This programme was aimed at imparting communication and planning of in- house training skills to supervisors and internal trainers. Kafubu and Nkana Water and Sewerage Company signed the third phase agreement under POIS and began implementing the programme. The bi-annual performance review reports indicating performance indicators achieved were received from Nkana and North Western Water and Sewerage Companies. POIS has had a positive impact on the performance of employees in both companies. Southern Water and Sewerage Company was requested to submit the status of their POIS account and a time frame within which they could re- assess the performance of the employees participating in POIS. Staff could not be assessed due to the problems experienced in the company, which led to the dismissal of five key members of staff who were participating in POIS. The report on the performance assessment could thus not be submitted during the reporting period. The Human Resources Officer accompanied the GTZ POIS Review Mission that visited all the participating CUs Water Watch Groups In order to ensure that consumer interests are protected and that there is sufficient and constant physical monitoring of the performance of providers on the ground, NWASCO has continued to set up Water Watch Groups (WWGs) tasked to handle previously unresolved complaints from customers in a provider's service area and to generally improve communication between consumers, providers and the regulator. The WWG for Lusaka has been operational since March 2002 and the term of office for the Lusaka Water Watch Group (LWWG) came to an end in March. A number of the members were replaced so as to give it a new lease of life. An induction meeting was held for the new group. The LWWG held a sensitisation meeting in Matero Township on the World nd Water Day (22 March) and gave an interview on its activities on Radio Phoenix. It also handled a number of consumer complaints.. NWASCO established the Kitwe Water Watch Group (KWWG) and Chingola Water Watch Group (CWWG) on the Copperbelt and the Kasama Water Watch Group (KWWG) in Northern Province. Induction workshops were held for all of them bringing the number of the WWGs to four. 10

13 2.3 Internal Organization and Development Internal Developments NWASCO operated at full establishment for only part of the year as two members of staff, namely, the Financial and Management Inspector and the Public Relations Officer resigned during the last quarter of the year. A planning meeting to finalise the workplan and the budget for 2004 was held in January. Both the workplan and the budget for 2004 were adopted by the Council for implementation. The Council also adopted the revised job descriptions for all members of staff and the performance indicators were also revised following a two day internal workshop. The NWASCO Information System (NIS) became operational and a user manual for the database was also developed. Training workshops were held for all the CUs on the use of the same and the system was installed on their computers. All the annual reports for the financial year 2003/2004 from the CUs were submitted through the NIS. The NWASCO Information System (NIS) The database on licensed providers has also been updated and shows type of licence, effective date, expire date, date of SLA/SLG, licence conditions etc, which will later form part of the NIS. The framework of the information for peri-urban which will be generated in the peri urban baseline study to be included in the NIS was also developed. NWASCO published and distributed its Annual Report for 2003, Urban Water and Sanitation Sector Report for the financial year 2002/2003 and the Report documenting the Water Sector Reforms. The Urban Water and Sanitation Report received wide media coverage and encouraging feedback from various stakeholders. Training and Study Tours Part of NWASCO personnel In terms of capacity building, the Technical Inspector undertook a study visit to Public Utility Regulatory Commission (PURC) in th th Ghana from 20 to 25 February 2004 which had a holistic look at its establishment, regulatory tools, challenges and general experiences in the areas of regulation and impact on service delivery. He also attended a one week course on Water Sector Reforms in South Africa and a two weeks trainers of trainers course in Kenya. 11

14 The Chief Inspector undertook a six weeks online certificate course in Fundamentals of Regulation that was conducted by the Institute of Public Private Partnerships (IP3). The Human Resources Officer attended a one week foundation course on Utility Regulation in Africa in Cape Town, South Africa and the Secretary to the Council attended a two weeks seminar on Strengthening Domestic Regulatory Systems for Effective Public and Corporate Governance organised by the International Development Law Organisation in Rome, Italy Council Meetings The Council held its mandatory four meetings at which it considered and approved, among other things, the revised tariff adjustment process and tariff adjustment requests from seven CUs and six Local Authorities (LAs), the NWASCO budgets for 2004 and 2005, the amendments to the Water Supply and Sanitation Act No. 28 of 1997 and to the Devolution Trust Fund Statutory Instrument and the transfer of licences from ten LAs in Northern Province to Chambeshi Water and Sewerage Company. The Council also considered and adopted the reports of the Administrative and Finance Committee, Technical Advisory Committee and the Devolution Trust Fund Committee and approved their recommendations on various issues. The Committees were very active and held a total of ten (10) meetings at which they considered various issues in detail. Tender Committee The NWASCO Tender Committee held four quarterly meetings to consider the procurement of office requirements for the year including the awarding of a number of service contracts and the disposal of obsolete items The Public Private Infrastructure Advisory Facility (PPIAF) The PPIAF funded capacity building project for NWASCO came to a conclusion during the first quarter of the year. This was marked by a workshop conducted by the Applied Technology Institute (ATI) consultants and attended by the Council and Professional staff. The workshop covered three agreed topics namely, Regulatory Strategy and Business Planning, Water and Wastewater Tariff Models and Regulatory Social Policy. Luncho spill way 12

15 2.4 External Relationship Participation and Exchange at Local and International Level NWASCO continued to provide advice and support in the sector through participation at various meetings such as the consultative meeting in Kasama on the peri urban water supply and sanitation strategy. Participants at this meeting included the Ministry of Local Government and Housing, Development Cooperation Ireland Chambeshi Water and Sewerage Company, CARE International, Provincial WASHE, all Local Authorities in the province as well as other stakeholders. NWASCO actively participated at the Sector Training Advisory Committee preliminary and formation meetings organised by Technical Vocational and Entrepreneurship Training Authority (TEVETA). This culminated in the formation of the Utility Sector Training Advisory Committee (USTAC) in May 2004 comprising of Energy, telecommunication and Water sectors. The water sector is represented by NWASCO, Lusaka and North Western Water and Sewerage Companies. NWASCO made a presentation on water supply and sanitation services tariffs in Zambia at the Zambia Consumers Association (ZACA) workshop in Kabwe and another on the water supply and sanitation sector framework at a workshop for journalists organised by the Water Resources Action Programme (WRAP). It also participated at the Sectoral Advisory Group Conference organised by Ministry of Finance and National Planning which reviewed the progress on projects in Water, health, energy and education sectors. At international level, NWASCO was represented at the Capacity Building Workshop for Regulating Water Services th held in Kenya, the 12 Congress of the Union of African Water Suppliers held in Ghana th and the 4 International Water Association Congress held in Morocco. It also participated at the Centre for Regulation and Competition (CRC) Conference held in Cape Town, South Africa where the Public Relations Officer presented a paper on the involvement of the community in regulating water supply and sanitation services. This paper was placed on the CRC website and it generated a lot of interest from a number of participating organisations Publicity NWASCO had a six weeks series of interview programmes that were aired on ZNBC television. A number of press briefings aimed at increasingly involving the media in the activities of the regulator particularly in monitoring the performance of Commercial Utilities were held. NWASCO staff gave interviews on Radio Phoenix, Yatsani Radio and ZNBC Radio on NWASCO's role in monitoring the quality of service being given by providers. This also included participation on the Zambia Consumer Association (ZACA) radio programmes which were being run on Radio Phoenix. NWASCO had a lot of publicity from the launch of the sector report and the Baseline Study respectively. Both the media and other stakeholders were invited to the two launches and this generated follow up stories in the print media particularly on the Baseline Study. 13

16 3.0 CONSTRAINTS and OUTLOOK for Constraints The major constraints experienced by NWASCO were insufficient finances and operating below the full staff establishment. There was a general improvement in collections of licence fees from providers as well as the liquidation of outstanding licence fees. This resulted in 84% of the NWASCO budget for 2004 being financed through licence fee collections compared to 77% in However, there were low collections of licence fees from Local Authorities and a number of the commercial utilities did not significantly liquidate the outstanding arrears from This therefore, adversely affected particularly the monitoring and implementation of the guidelines. The staff constraint also affected the finalisation of the Accounting guidelines that were scheduled to be issued during the course of the year. 3.2 Outlook for 2005 The main focus of NWASCO in the year 2005 will be on monitoring of providers on the quality of service level being provided particularly with regard to coverage, hours of supply, water quality and general efficiency. More consultations will be made with all providers to discuss the general sector problems and the regulatory framework to make it more effective and ultimately improve service provision and viability of water supply provision. The certification of part time inspectors as a means of strengthening the capacity of NWASCO will be formalised. The Devolution Trust Fund (DTF) will continue with implementation of the water supply projects in Mongu town and Nkwazi Township in Ndola to extend water supply services to the urban poor. The remaining works will be completed by June About 60,000 people are expected to benefit from these projects once completed. The Baseline Study on Water Supply and Sanitation will also continue to gather data in the remaining five provinces of Eastern, Southern, Lusaka, Copperbelt and Central. All the tasks under the Study are scheduled to be completed by July NWASCO will continue providing technical support towards the establishment of a commercial utility in the Central Province. The Sector Report for 2003/2004 on the performance of providers and the sector in general will be issued within the first quarter of The proposed amendments to the Water Supply and Sanitation Act No. 28 of 1997 were finalised and scheduled to be tabled before Parliament during the first quarter of The amendments are regarding the reduction in the size of the Council and the increasing of the penalties provided in the Act. In view of the financial constraints, which would be worsened by the further reduction in the Government grant for the year 2005 and the impending cessation of the technical assistance, NWASCO hopes to bridge the deficit through the adjusting of the rates for the monthly licence fees to 2%. Nkana WSC kiosk in Itimpi compund 14

17 st 4.0 List of Licensed Providers as at 31 December 2004 Providers with 10 year licences 1. AHC MMS Limited 2. Chipata WSC 3. Chambeshi WSC 4. Kafubu WSC 5. Lusaka WSC 6. Mulonga WSC 7. Nkana WSC 8. North-western WSC 9. Southern WSC 10. Western WSC 11. Chilanga Cement 12. Kaleya Small Holdings 13. Zambia Sugar Plc 14. Zesco 15. Zambia Revenue Authority 16. Mkushi DC 17. Kapiri Mposhi DC 18. Mumbwa DC 19. Maamba Collieries 20. Nampundwe Mine KCM 21. Chibombo DC 22. Serenje DC 23. Mbala MC Providers with Provisional Licences 24. Kabwe MC 25. Katete DC 26. Lundazi DC 27. Petauke DC 28. Chadiza DC 29. Chama DC 30. Kawambwa DC 31. Mansa DC 32. Chiengi DC 33. Mwense DC 34. Nchelenge DC 35. Samfya DC 36. Chongwe DC 37. Kafue DC 38. Luangwa DC 39. Luwingu DC *DC *MC *WSC District Council Municipal Council Water and Sewerage Company 15

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