NWASCO Annual report · NWASCO Annual Report 2003. ANNUAL REPORT FOR THE YEAR 2003 TABLE OF CONTENTS Mission Statement 1 1. ... Mr Peter Lubambo Ministry …

MISSION STATEMENTMISSION STATEMENTMISSION STATEMENTMISSION 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


Enforcement of


Promotion of market

competition

Protection of consumers

and

Extension of services to

-

-

-

-


- Enforcement of


- Promotion of market

competition

- Protection of consumers

and

- Extension of services to

NWASCO Annual Report 2003

ANNUAL REPORT FOR THE YEAR2003

TABLE OF CONTENTS

Mission Statement 1

1. Chairman’s Statement 4

2. Report on the 2003 Activities 5

2.1 Regulating Providers 62.1.1 Licensing 62.1.2 Guidelines 62.1.3 Monitoring 72.1.4 Complaints 72.1.5 Mediation 82.1.6 Tariff Reviews 8

2.2 Sector Development 92.2.1 Commercialisation of Remaining Local Authorities 92.2.2 Support to Commercial Utilities 92.2.3 Devolution Trust Fund (DTF) 92.2.4 POIS 102.2.5 Water watch Groups 10

2.3 Internal Organisation & Development 112.3.1 Internal Development 112.3.2 Council Meetings 112.3.3 The Public and Private Infrastructure Advisory Facility 11

2.4 External Relationship 122.4.1 Participation and Exchange at Local & International Levels 122.4.2 Publicity 12

3. Constraint and Outlook for 2004 14

4. List of Licensed Providers 15

5. Audited Annual Financial Statement for 2003 16

2


3

Nwasco Council

ChairmanDr Cosmas Musumali

Economics Association of ZambiaVice Chairman

Mr. Muyunda IlilongaZambia Consumers Association

Dr. Simon K MitiMinistry of Health

Mr Peter LubamboMinistry of Local Government

& Housing

Mr. Fumu MondolokaZambia Association

Chambers of Commerce & Industry

Mr. Richard Moonze ChizyukaMinistry of Finance and

National Planning

Mr George Kapelwa LipimileZambia Competition Commission

Ms. Nana MudendaMinistry of Legal Affairs

Mr. Edward H ZuluEnvironmental Council of Zambia

Mr. Benny NgalandeLocal Government Association

of Zambia

Mr. Hastings ChibuyeWater Development Board

Mr. Arthur Bob Litana Businessman

Mr. P M ChipandaMinistry of Community Development

& Social Services

Mr. Adam HussenDepartment of Water Affairs MEWD

Mr. Munkalapaminga Z Ng’ambiBusinessman


4

During the year 2003 the National Water Supply and Sanitation Council (NWASCO) clocked three years since inception and start of operation. In these three years, NWASCO has become a fully-fledged regulatory institution with the requisite tools developed that guide service providers in ensuring improvements in service delivery and overall sustainability. We have also observed an increased consumer participation in the sector mainly through Water Watch Groups. For example consumer complaints against unsatisfactory quality of service have increased which 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.

In the last three years, different service providers have effected a total of ten (10) tariff adjustments. These tariff adjustments have targeted mainly meeting the shortfall between the operating costs and the prevailing of water charges. 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 a performance comparison report of the service providers in the country. This serves to inform both the service providers and the public of the trends in the sector development and performance.

There has also generally been an increased stability in service hours, although in a number of commercial utilities the high peak demands of the dry season (July – November) still poses a serious challenge. Further, there is need to intensify education campaigns on water conservation and metering of consumption. These efforts, coupled with increased focus on the improvement of supply to the peri-urban areas, will hopefully assist in creating some balance in the demand for supply of water.

Provision of water and sanitation services to the poor in the urban areas services 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 should be applauded and require support by all key stakeholders.

The delay in the appointment of the Council and inadequate funds allocated to the institution affected a number of planned programme for the year. However, it is hoped that such problems will become increasingly less significant in future.

Thank you.

Dr Cosmas Musumali

1.0 CHAIRMAN’S STATEMENT


5

The National Water Supply and Sanitation Council (NWASCO) was established under the Water Supply and Sanitation Act No. 28 of 1997. It has been

stoperational since 1 June

2000 fo l lowing the appointment of management. It has since operated at full establishment of 13 members of staff.

The year 2003 has been significant for NWASCO in that since the three-year term of office for the first Council came to an end on

th30 September 2002, the institution operated without a Council until August 2003. This meant the second Council had to handle a lot of outstanding business within the first three months of existence.

The major focus for the year was the issuance of ten-year licences in view of the lapsing one-year provisional licences issued in 2001, the sensitisation of providers on the use of the issued guidelines and monitoring of the

Introduction


2.0 REPORT ON THE 2003 ACTIVITIES

NWASCO DIRECTOR

service provision. During the year NWASCO produced the first Sector Performance Report, which mainly highlights the performance of the Commercial Utilities (CUs) and the sector in general.

NWASCO continued in facilitating the establishment of a CU in Northern Province, which became operational in the last quarter of the year.The Devolution Trust Fund (DTF) became operational with two pilot projects under Mulonga and Nkana Water and Sewerage Companies receiving funding for construction of kiosks. The main objective of the DTF is to provide an incentive to providers to extend their coverage to low income areas through the funds provided.

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 from external support agencies, mainly GTZ.

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2.1.1 Licensing

During the year, NWASCO issued 10-year licences to Mulonga Water and Sewerage Company, Mkushi, Chibombo, and Konkola Copper Mines - Nampundwe mine who had fulfilled all their application requirements. This has brought the total number of providers issued 10-year licences to twenty-one (21).

An application for a licence was received from Zambia Revenue Authority (ZRA), which is being processed and awaiting payment of the application fees. The application is for the water schemes in Southern Province border posts of Chirundu, Kazungula, Livingstone and Katima Mulilo.

Letters were sent to the two institutions, which have been operating without a license. The Zambia Wild Life Authority (ZAWA), Fisheries and Veterinary Department under the Ministry of Agriculture and Cooperatives were also directed to apply for licences for providing water to Chilanga Township.

During the third quarter of 2003 Chambeshi Water and Sewerage Company became operational and all the concerned 11 local authorities are in the process of transferring their individual licences to the Company.

Licence Fees

The Statutory Instrument No.18 of 2003 which amended the mode of levying monthly licence fees was issued by the Minister of Energy and Water Development and became effective in June 2003. The invoices for the monthly licence fees for the local authorities and other providers were sent covering the whole year.

This was due to the fact that the administrative costs of sending monthly invoices for anything less than fifty thousand Kwacha per month far outweighed the amounts collected.

The average collection rates for the year was 70%.

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 and Kawambwa District Councils have completely ceased to provide the services due to lack of money for diesel for their power generators. This is in contrast to Commercial Utilities whose quality of service has generally improved in terms of hours of supply and increase in service coverage.

2.1.2 Guidelines

NWASCO with the support from GTZ commissioned a Consultant to undertake a study on accounting harmonization. The first phase of the study, which involved collecting information from three commercial utilities, namely, Chipata, Lusaka and Southern Water Sewerage Companies, was completed. The output from this study will be a guideline on accounting which will also seek to harmonise the charts of accounts and thus enable the regulator to better assess and compare the financial performance of the CUs.

2.1 Regulating Providers


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Training

There was continued sensitization of all the commercial utilities by a team of consultants on tariff adjustment, reporting and business plan guidelines. Chief Executive Officers and senior officers of all Commercial Utilities attended two workshops on the Tariff Guidelines that were both held at the NWASCO offices in August 2003.

2.1.3 Monitoring

All the Commercial Utilities submitted their annual statutory reports in line with the Annual Reporting Guideline issued by NWASCO. The data from these reports was used to compile the Urban Water Sector Report for 2002/2003 that is scheduled to be issued during the first quarter of the year 2004. The Report will include an analysis of the performance of all the providers.

AHC-MMS, Chipata, Nkana, North Western, Kafubu and Southern Water and Sewerage

stCompanies submitted their 1 service level annual reports during the year. Mulonga Water and Sewerage Company submitted their final proposal for Service Level Guarantee/Service Level Agreement and the first Service Level Agreement was signed.

A number of random spot check inspections were carried out on AHC-MMS, North Western, Southern, Kafubu, Mulonga and Western Water and Sewerage Companies on compliance to the licence conditions and minimum service level guarantees. The areas of shortcomings were brought to their attention and they were given time frames within which to address the same. All the Companies attended to the identified issues within the given time frames.

2.1.4 Complaints

During the year the number of reports reaching NWASCO increased as an indication of the publics’ awareness of the regulator. The complaints mainly related to the erratic and none supply of water, overcharging for the services and meter over reading involving the following providers; Kafubu, Lusaka and Nkana Water and Sewerage Companies and Kafue District Council. There was also a complaint regarding a claim for refund of capital investment for a new plot in Mass Media area, Lusaka. All the complaints were directed to the providers to quickly resolve them.

Lack of Water

The problem of erratic water supply to Chelstone and Avondale areas under Lusaka Water and Sewerage Company (LWSC)


8

worsened during the dry season. An inspection visit was therefore made to ascertain the cause in light of the major rehabilitation works that were undertaken, but which do not seem to have had any significant impact. It was learnt that apart from the design problems with the new tank, two of the new boreholes were not functioning. It was expected that the supply situation would normalise in the first quarter of 2004 during the rainy season.

There was another complaint from Olympia residential area regarding water being billed on a high rate. This was brought to the attention of Lusaka Water and Sewerage Company, which has since installed a meter to rectify the problem.

Mufulira residents who are serviced by Mulonga Water and Sewerage Company faced the similar problem of inadequate supply. Mulonga reported that they had made some improvements to the network that had resulted in improved supply to the affected area.

There was a press report on erratic water supply to Kaoma Hospital because of reduced pumping hours by Western Water and Sewerage Company. This was due to Zesco’s reduced hours of electricity supply. This problem affected most of the districts in Western Water and Sewerage Company, which are supplied by ZESCO from diesel run generators.

There was also a complaint from Lulamba in Chingola on the erratic water supply. AHC management addressed the problem and an improvement in the hours of supply was achieved by the end of the third quarter.

Water Quality

NWASCO made an inspection visit to follow up the complaints on poor water quality to Musamba township that is serviced by Chilanga Cement PLC. The problem was inadequate disinfection. The Company was directed to address the same and this was done through the installation of two online chlorinators. They also rehabilitated their sewage ponds. However, despite these efforts, latest results still showed the presence of faecal contamination at some of the water points. The situation is being closely monitored.

2.1.5 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.

2.1.6 Tariff Reviews

The Council considered the tariff adjustment requests from AHC Mining Municipal Services and North Western Water and Sewerage Company that were submitted in September and October 2002 but could not be considered earlier due to non appointment of the Council. The Council was only appointed in August 2003.

During the annual tariff application window from September to October, tariff adjustment requests were received from Kafubu, Mulonga and Western Water and Sewerage Companies and from five Local Authorities, namely, Chinsali, Kafue, Katete, Luangwa and Serenje District Councils. These will be considered by the Council during the first quarter of 2004.


9

2.2 Sector Development

2.2.1 Commercialisation of Remaining Local

Authorities

NWASCO continued with the facilitation of the

establishment of the Chambeshi Water and

Sewerage Company in Northern Province. The

commercial utility is now operational and the

Managing Director had been recruited. In this

vein, the tripartite meetings involving NWASCO,

Development Cooperation Ireland (DCI) and

Chambeshi Water and Sewerage Company

where held. NWASCO also assisted in finalising a

proposal for fur ther suppor t to the

commercialisation process by DCI to Chambeshi

Water and Sewerage Company.

In line with the sector principle of commercialising

the water supply and sanitation service delivery,

there is need to ensure that CUs are formed by the

remaining Local Authorities in the Luapula and

Central Provinces as well as to ensure that the

remaining towns under the operation of District

Councils are incorporated into the existing CUs in

Lusaka and Eastern Provinces.

There has been some progress towards the

establishment of a commercial utility in Central

Province with the formation of the Joint

Implementation Team (JIT).

2.2.2 Support to Commercial Utilities

Private Sector Participation

The Government sourced for funding from the

World Bank under the Public Private Infrastructure

Advisory Facility (PPIAF) to assess the possibilities

and options for private sector participation in

Lusaka Water and Sewerage Company. The main

aim for considering private sector participation

was improvement and expansion of water supply

and sewerage services to the city of Lusaka.

NWASCO took part in the Private Sector

Participation (PSP) option study evaluation and

workshop for Lusaka Water & Sewerage

Company. NWASCO also sits on the Steering

Committee that is tasked to recommend to

Government the Exit Strategy for AHC-MMS on

the Copperbelt.

2.2.3 Devolution Trust Fund (DTF)

In the continued effort to ensure that the

Commercial Utilities increase access to water and

sanitation services in the peri-urban areas,

NWASCO assessed the proposed works to be

carried out in Mulonga and Nkana for the

extension of services to the peri-urban areas as

pilot projects. This is being done under the DTF

that was established under the Statutory

Instrument number 65 of 2001 for that purpose.

The works for the two projects commenced after

signing the contracts. In addition to the

Government contributions, NWASCO sourced for

additional funds for this exercise from the

German Technical Cooperation (GTZ) and

Ireland Aid (DCI).

NWASCO with assistance from GTZ engaged a

Consultant to carry out a study and propose the

best structure and operations for the DTF. After

the conclusion of the study, a stakeholders meeting

was held to reach consensus on the way forward

to avoid derailments on the implementation of

future projects.

For increased support and monitoring of the DTF,

a manager was recruited to oversee the

operations and projects under the DTF.

The terms of reference (TOR) for a baseline study

to assess the needs in the peri-urban areas

countrywide were concluded with the KfW. Three

consulting firms were short listed to conduct the


10

study. The assessment report from this study would

also serve as a document for sourcing funds for the

Devolution Trust Fund (DTF).

2.2.4 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, three Training of Trainers courses were

conducted during the year for staff from the four

CUs participating in POIS, namely, Nkana, North

Western, Southern and Kafubu Water and

Sewerage Companies. An average of ten (10)

participants attended each course. The courses

were aimed at imparting communication and in

house training skills to the company trainers.

Chipata and Mulonga Water and Sewerage

Companies are no longer participating in the

POIS due to failure to meet requirements.

Of the four CUs participating in POIS, North

Western and Southern Water and Sewerage has

implemented the programme on the ground.

Kafubu and Nkana have completed the first and

second phases, which involve the development of

the necessary management tools and will be

entering the third phase of the programme. With

the Introduction of POIS, it is envisaged that the

companies should be able to retain qualified and

motivated employees.

2.2.5 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 is setting 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. One WWG for

Lusaka has been operational since March 2002

and is composed of volunteers from the members

of the public.

The Lusaka Water Watch Group in their plan of

action for the year targeted to reach out to the

peri-urban areas where there had been a lot of

complaints regarding quality of service. Two

meetings were held in Matero and Chunga

townships to sensitize the residents on their

responsibilities and concerning the minimum

service level to expect from the service provider.

Lusaka Water and Sewerage Company

participated at these meetings and explained

their plans to improve the situation. A number of

complaints were also successfully handled by the

Lusaka Water Watch Group.

The Lusaka Water Watch Group also

participated at the Water Forum in Japan. A

representative of the group was sponsored by the

Conference Organisers to attend the Forum and

participate in an exhibition. This was as a result of

the group having been selected after having

participated in a competition organised by the

Forum.

The process of setting up Water Watch Groups on

the Copperbelt commenced and possible

candidates were shortlisted. It is hoped that this

should help address complaints from water

consumers on the Copperbelt.


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2.3.1 Internal Developments

NWASCO operated at full establishment for only

part of the year as three members of staff,

namely, the Technical Inspector, Secretary to the

Director and Typist, resigned at different times

during the course of the year. All the vacancies

were later filled.

The contracts of the Director and the Chief

Inspector expired in May 2003 and for Secretary

to the Council in September 2003 after serving

for three years. The three all continued pending

the Council’s decision on the renewal of the same.

The delay was due to the non appointment of the

Council. The contracts have since been renewed.

A planning meeting to develop an activity plan

for 2004 with indicators was held in December

2003 and was attended by all professional staff.

The activity plan and the budget for 2004 are yet

to be adopted by the Council but the same were

already considered by the relevant Committee.

Training and Study Tours

In terms of capacity building, the Financial

Inspector attended the Private Sector

Participation (PSP) and the Poor Workshop in nd rd

Maputo, Mozambique from 2 to 3 August

2003.

2.3.2 Council Meetings

The Council held two meetings in August and

September 2003 following its appointment on th13 August 2003. The September meeting was

preceded by an Inauguration meeting with the

Honourable Minister of Energy and Water

Development, Mr G W Mpombo and an induction

workshop on the role and functions of NWASCO

as the Regulator.

During the first meeting, the Council considered

the Handover Report from the previous Council,

the audited accounts for 2003 and the NWASCO

annual report. The Council also considered the

reports of the Administrative and Finance

Committee and the Devolution Trust Fund

Committee and adopted the same. The Council

also approved the recommendations from the two

Committees.

The 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. Also considered

was the procurement of various office equipment,

including computers, and furniture for Chambeshi

Water and Sewerage Company. The items were

then handed over to the Company.

2.3.3 The Public Private Infrastructure

Advisory Facility (PPIAF)

Applied Technologies International (ATI), the

consultant on the PPIAF funded capacity building

project for NWASCO submitted the first and final

draft reports after undertaking a field trip to

Zambia. During the trip discussions were held with

NWASCO staff and other stakeholders in the

sector. NWASCO made a number of

observations on issues that needed to be clarified

before the report could be accepted. The final

report was submitted after the clarifications were

taken into consideration. The report is part of the

World Bank support to identify areas that require

strengthening in regulating the sector. Three

workshops were scheduled to be held in 2004 as

a follow up on the same.

2.3 Internal Organization and Development


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2.4 External Relationship

2.4.1 Participation and Exchange at Local and International Level

NWASCO continued to provide advice and support in sector development to the Ministry of Local Government and Housing, where a proposal on a Sector Wide Approach to Programming (SWAP) was developed for discussion. Further inputs have been given to the Private Sector Participation (PSP) studies that have been taking place in the Ministry for the Copperbelt within the framework of the Exit strategy of the Mine Township Municipal Services project.

The Regional Water Supply and Waste Water Supply System Course was successfully

st thheld from 1 to 20 September 2003 in Ndola. The course was organised by WASAZA with financing through InWent of Germany. NWASCO was involved in the coordination of logistics.

NWASCO participated at a Post World Summit on Sustainable Development (WSSD) Awareness workshop. The workshop was organized by the Media Enviro-Forum in conjunction with Panos. The Media Enviro-Forum, which constitutes journalists who report on developmental issues, promised to give water and NWASCO’s activities more media coverage.

The Water Resource Action Programme (WRAP) Workshop on ins t i tu t ional arrangement for water resource management in the country was attended by NWASCO.

At the international level, NWASCO rdparticipated at the 3 World Water Forum

that was held in Tokyo, Japan where the Director presented a paper under the Water and Poverty theme.

NWASCO was represented at the Water Utility Partnership (WUP) meeting on the coordination of water reformers held in Nairobi, Kenya. The reformers’ workshop sought to bring together the experiences and knowledge across the continent on the reformation of the water sector. This was held back to back with the German.

Technical Cooperation Sector networking meeting on Regulation, at which the team tried to prepare a best practise document on water regulation in the region.

2.4.2 Publicity

NWASCO run a thirteen (13) week series of radio and television interview programmes which also hosted a number of Commercial Utilities. The series came to an end during the course of the first quarter.


13

The following are some of the main topics that where discussed:! Tariffs; ! Water quality; ! NWASCO guidelines; ! The role of NWASCO in the water

sector and the way forward; ! Corporate Governance;! Responsibilities of the providers with

regard to the Minimum Service Level guideline;

! Water Watch Groups;! Devolution Trust Fund;! Sector report;! The role of the media in water

regulation; and ! The role of the Ministry of Local

Government & Housing in water supply & sanitation service provision with respect to the Local Authorities and rural water supply.

The three Commercial Utilities that

participated in the programme were Asset

Holding Company – Mining Municipal

Services, Kafubu Water and Sewerage

Company and Chipata Water and Sewerage

Company. These all discussed the challenges

they were facing in delivering quality services

in their service areas.

NWASCO participated in the preparations

of the World Environment Day, which was th

commemorated on 5 June 2003 and also

took part in the exhibitions at the National

Museum during the same week.

NWASCO also hosted an interactive media

Forum at which the role of the regulator was

explained.


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3.0 CONSTRAINT and OUTLOOK for 2004

3.1 Constraint

The major constraint experienced by NWASCO

was insufficient funds. Grant releases from the

Government declined although there was a

general improvement in collections of licence fees

from providers. This resulted in 72% of the

NWASCO budget for 2003 being financed

through licence fee collections compared to 77%

in 2002 and 43% in 2001. However, there were

low collections of licence fees from Local

Authorities and most of the commercial utilities did

not significantly liquidate their outstanding

arrears from 2002. This therefore, adversely

affected particularly the monitoring and

implementation of the guidelines.

3.2 Outlook for 2004

The main focus of NWASCO in the year 2004 will

be on monitoring providers through scheduled

inspection visits and spot checks with a view to

ensure continued improvements in service delivery

and improve services to the poorly served peri-

urban areas. It will also continue with the

development of the planned guidelines on

accounting and on sanitation provision to peri-

urban areas. The guideline on accounting is meant

to harmonize cost information thereby making it

comparable and to enable the providers

generate the needed data.

The Devolution Trust Fund will increasingly stand

on its own as the agreed set up will be

implemented. This will ensure that the functions of

NWASCO as regulator are clearly distinguished

from those of project implementation under the

DTF.

NWASCO will continue providing technical

support towards the establishment of a

commercial utility in the Central Province.

The Sector Report for 2002/2003 on the

performance of providers and the sector in

general will be issued within the first quarter of

2004.

NWASCO also plans to have four Water Watch

Group established and operational in Chingola,

Kitwe, Ndola and Livingstone on the Copperbelt

and Southern Provinces.

Internally, NWASCO will focus on its development

in order to better meet the challenges in the sector.

This will include the introduction of a

comprehensive and computerised information

system to assist in the management of the

increasing data flow and for consistent and

effective monitoring of sector performance.

In view of the financial constraints, which would be

worsened by the further drastic reduction in the

Government grant for the year 2004, NWASCO

hopes to bridge the deficit through increased

collection of licence fees and sourcing of support

from donors. However, with the current financial

position of most of the providers as alluded to in

the constraint for 2003, it is very optimistic that

NWASCO would achieve all of its intended

targets particularly with regards to the monitoring

of the providers.

NWASCO also intends to facilitate the sharing of

experiences among the CUs and document the

best practices in order to enhance the continuous

improvement in the general performance of CUs.


15

st4.0 List of Licensed Providers as at 31 December 2003

Providers with 10 year licences

1. AHC MMS Limited2. Chipata WSC3. Kafubu WSC4. Lusaka WSC5. Mulonga WSC6. Nkana WSC7. North-western WSC8. Southern WSC9. Western WSC10. Chilanga Cement 11. Kaleya Small Holdings12. Zambia Sugar Plc13. Zesco14. Mkushi DC15. Kapiri Mposhi DC16. Mumbwa DC17. Maamba Collieries 18. Nampundwe Mine KCM19. Chibombo DC20. Serenje DC21. Mbala MC

Providers with Provisional Licences

22. Kabwe MC23. Katete DC24. Lundazi DC25. Petauke DC26. Kawambwa DC27. Mansa MC28. Mwense DC29. Nchelenge DC30. Samfya DC31. Chongwe DC32. Kafue DC33. Luangwa DC34. Chilubi DC35. Chinsali DC36. Kasama MC37. Luwingu DC38. Mungwi DC39. Mpika DC40. Mporokoso DC41. Mpulungu DC42. Nakonde DC43. Chama DC44. Chadiza DC45. Isoka DC46. Kaputa DC47. Chiengi DC


16

5.0 Audited Annual Financial Statement for 2003


17


18

NATIONAL WATER SUPPLY AND SANITATION COUNCIL

BALANCE SHEET

AS AT 31ST DECEMBER 2003

NOTE 2003 2002

CAPITAL EMPLOYED K K

FIXED ASSETS 5 1,152,741,393 1,247,911,764

1,152,741,393 1,247,911,764

CURRENT ASSETS

Accounts Receivables 6 1,464,788,498 1,154,531,397

Cash and Bank Balances 7 104,277,291 204,535,358

Other Debtors 8 39,822,984 29,947,048

1,608,888,773 1,389,013,803

CURRENT LIABILITIES

Accounts Payables 9 (249,643,404) (49,495,742)

WORKING CAPITAL 1,359,245,369 1,339,518,061

TOTAL ASSETS 2,511,986,762 2,587,429,825

FINANCED BY:

Accumulated Fund 10 2,511,986,762 2,587,429,825

Deferred Income:

CAPITAL EMPLOYED 2,511,986,762 2,587,429,825

These Accounts were approved by the Council on…………………2004 and signed

on its behalf by:

-

…………………………………………….. ………………………………………………

DR. COSMAS MUSUMALI MR. OSWARD M CHANDA

CHAIRMAN DIRECTOR


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INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31ST DECEMBER 2003

NOTE 2003 2002

K K

INCOME

Grant Revenue 11 127,634,735 354,533,576

Licence fees 12 1,089,826,098 979,300,000

Other Income 13 53,879,763 54,040,218

Interest Received net 14 2,074,550 11,352,934

Profit on sale of assets 15 10,835,403 735,943

Transfers 16 95,891,243 662,214,117

TOTAL INCOME 1,380,141,792 2,062,176,788

EXPENDITURE 17 1,455,584,854 1,329,534,463

(DEFICIT) / SURPLUS (75,443,062) 732,642,325


20


CASHFLOW STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER 2003

NOTE 2003 2002

OPERATING ACTIVITIES K K

NET FLOW FROM OPERATING ACTIVITIES 18 (143,135,859) 72,909,639

RETURN ON INVESTMENT AND SERVICING OF FINANCE

Interest Paid (3,182,406) (5,272,696)

Interest Received 2,074,550 11,352,934

Exchange Gains - 53,010,218

NET FLOW FROM RETURN ON INVESTMENT (1,107,856) 59,090,456

AND SERVICING OF FINANCE

INVESTING ACTIVITIES

Disposal of Fixed Assets 49,650,883 2,954,000

Payments to acquire Fixed Assets 19 (5,665,233) (3,916,500)

Work in Progress - (191,313,322)

NET OUTFLOW FROM INVESTING ACTIVITIES 43,985,650 (192,275,822)

(DECREASE)/INCREASE IN CASH BALANCES (100,258,066) (60,275,727)

BALANCE B/F AS AT 1ST JANUARY 204,535,357 264,811,084

CASH AS AT 31ST DECEMBER 104,277,291 204,535,357


21

EXPENDITURE 2002

ADM INISTRATION

17%

PERSONNEL

45%

DEPRECIATION

11%

EXTERNAL

SERVICES

2%INSURANCE

5%

REPAIRS AND

M AINTENANCE

3%

TRAVELLING AND

SUBSISTENCE

8%

COUNCIL AND

BOARD EXPENSES

4%

PUBLIC

RELATIONS

5%

EXPENDITURE 2003

ADM INISTRATION

14%

PERSONNEL

57%

DEPRECIATION

11%

EXTERNAL

SERVICES

2%INSURANCE

3%

REPAIRS AND

M AINTENANCE

4%

TRAVELLING AND

SUBSISTENCE

4%

COUNCIL AND

BOARD EXPENSES

2%

PUBLIC

RELATIONS

5%

Note: The rise in

personnel cost for

2003 is due to

payment of gratuity

for three contract

personnel.


Documents

NWASCO Annual report · NWASCO Annual Report 2003. ANNUAL REPORT FOR THE YEAR 2003 TABLE OF CONTENTS Mission Statement 1 1. ... Mr Peter Lubambo Ministry …