Regulation of Commercialized Water Supply and Sanitation Authorities

Through the implementation of the Tanzanian water sector reform, the public financing of urban water supply and the free distribution of water resulting in missing management capacity and a lack of investments in infrastructure has been abolished. Urban water supply has been commercialized, paving the way for a more efficient and productive approach based on commercial necessities.
In order to regulate, monitor and improve the performance of the commercial water utilities, balance commercial requirements with consumer interest and guarantee an independent regulation of the water sector, the independent Energy & Water Utilities Regulatory Authority (EWURA) was established in 2006 supported by GIZ.

Objective:

Improve regulation of commercialized water supply and sanitation authorities.

GIZ has supported the regulatory authority since 2006

Support areas are: Management, institution building, monitoring and economic regulation:

  • Development of a License and Order Information System (LOIS) in order to help EWURA managing its licensing processes and follow-up in the water, gas, petroleum, and electricity sectors.
  • Development of energy audit, management, and efficiency investment solutions to help reduce the high energy costs faced by many urban water utilities.
  • Tariff models and instruments were developed and implemented to improve the regulatory framework. This included the development of strategic guidelines (Business Guidelines, Asset and Financial Management Guidelines) as well as the implementation of cost recovering water tariffs,
  • The data information system MajIs has been developed and upgraded to improve monitoring of the performance of water utilities. The data gathered with the information system is used for sectoral monitoring of output/outcome indicators and for business plans and performance agreements with the regulated water utilities,
  • The information base for services in low-income areas and the impact of Informal Service Providers (ISPs) has been improved and translated into regulations (e.g. for tanker/ priv. boreholes). Human rights and pro-poor aspects have been included in the business planning guidelines,
  • Loan guidelines have been developed together with EWURA and MoW to support water utilities in accessing funds outside the Water Sector Development Programme (WSDP) e.g. from private banks and improve their investment capacities.

If you want to get more information on Regulation, please have a look at our factsheet.