Development of guidelines
- Review the various costs categories for commercial utilities with a view to identify overlapping costs;
- Identify the overlapping costs between water, sewerage and shared assets and identify the best and most accurate way to have a fair split between shared assets: and
- Develop guidelines which can be used to separate water and sewerage costs.
Modification and improvement of the cost of service model fulfilling the following functions
- Capture capital investment projects planned by the Commercial Utilities and allow for easy updating;
- Update existing investment plan guideline for Commercial Utilities; and
- Support NWASCO in the decision making process on water supply and sanitation service delivery.
Recommendations for a pricing strategy for sanitation service delivery
- Deduce recommendations for a pricing strategy;
- Review the current NWASCO tariff and propose a pricing strategy making use of the developed cost separation mechanism and having the least impact on the customer’s affordability and willingness to pay for sanitation service delivery; and
- Ensure that commercial utilities will reach financial sustainability.
Workshops on use of guidelines and financial model
- Carry out workshop for the commercial utilities together with NWASCO to ensure the use of the new guidelines and the revised investment plan.