Facilitation Projects
There are three SADC facilitation projects, which have been included in the Water Sector RIDMP,
namely institutional reforms in municipal water supply service, domestication and harmonisation of
SADC protocols and institutional reforms in RBOs and river/water authorities of the SADC region.
Institutional reforms to reduce operational inefficiencies of municipal water service providers in
the capital cities of the SADC Member States (Project GP‐1)
The majority of the capital cities of the SADC region experience high levels of water and revenue
losses as a result of inefficient staffing structures, poor billing systems, poor maintenance, non‐cost
reflective tariffs, aging infrastructure and illegal connections. The poor revenue collection and high
levels of water losses have resulted in poor financial sustainability of service provision for most of
these municipal service providers. Poor revenue collection for water services remains a major
challenge that impacts negatively on sustainable service delivery. In many cases, the government
controls the water tariffs, which is usually politically motivated, resulting in poor service delivery and
insufficient investments in maintenance.
Illegal water connections result in water theft and reduced revenue. It is thus important that while
focusing on developing new sources of water, the optimisation of existing water sources, usage and
efficient operation and maintenance of existing infrastructure, are also given priority. As an example,
purified sewage effluent can be used to water golf courses, parks and sports grounds.
There is therefore need for a project that will assess the institutional reforms necessary to address
operational inefficiencies of municipal water service providers of the capital cities of the SADC region
to address issues such as staffing structures, cost reflective tariffs, billing, illegal water connections
etc., so that revenue streams and the management of the municipal water service providers is
improved with resultant improved infrastructure maintenance.
This would be a pre‐investment project with the SADC Water Division being the proponent and the
municipal water service providers of the SADC capital cities being the lead agencies. It is estimated
that it will cost on average US$2 million per city for the project giving a total cost of US$30 million.
The project would start with the drafting of the ToR for the project in 2013, tendering for the
consultancy work in 2013 and execution of the project in 2014. Project profiles for each city would
then be produced for the mitigatory policy changes, works and costs thereof.
Possible project financiers are DBSA, GEF and the AfDB. The project can be considered to be in Phase
4 of the ICA Project Development Phases.
The major project challenge foreseen is timely sourcing of project finances.
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