1 31407

I ~~~Alternative

I ~~Management

J ~~Arrangements

-Kibera Settlement -

| ~~~~~~Vol. I: Main Report

llU

Prepared by:Business and Economics Research Co. Ltd

| ~~~~~~~~December, 1999

I.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

I I I I I I i I i

Kibera Settlement: Alternative Water ManagementArrangements

lllII3 Final Report

*; Volume II: Annexes

1l

Prepared by:I Busiless and Econiomics Research Co. Ltd

276 Karen RoadP.O Box 21770

| Nairobi.Phone: 882103/884138I Fax: 882011Email: bern@iconnect.co.ke

1 Decemher 1999

I I Il j l l l l l I III I I i

I'

Nl VOLUME II: ANNEXES

Annex I: List of Documents Reviewed3 Annex II: Stakeholders Consultations' Report

Annex III: Proceedings of Workshops Team ofExperts Workshop and AMA SelectionWorkshop

Annex IV: Kibera account Balances for October1996 and July 1998

Annex V: Inventory of Loose Assets held by| NCC-WSD Nairobi Dam Division

Annex VI: AMA Costs of Adoption and Installation| I Annex VII: AMA Water Costs

Annex VIII: Financial Scenarios

'lIlll

l

I I I I . I ! I I ! > iI

IIIIIII

'1'

l~~~~~~~~~~~~~~~~~~~f

I

I .,. ~~Annex II

List of Documents Reviewed

I

IIII

I I I I I I I I I

Aninex 1: us r D1 l)OCUMENTS REVIEWED FOR KIBERA WATER AMA ASSIGNMENT

_o - Title Author/Org. YearWater Supply to Underprivileged Districts Lyonnaise Des EanxSettlement Inf'raastructure and Environment Progr-aimi - Putting Habitat Agenda to work UNCHS(Habitat)The Water Supply Project in Satellite Area Ol' Lusaka under Japanese Grant AidThematic Group on Services l'or lhe Urban Poor - Urban Poverty Selected Write - up

_ Water SuLpply f'or the Urbanl Poor - Project Fact Sheet RWSSG-SAManaging Witter Supplies in Developing Areas ol South Africa

_Urban Water Supply and Environmental Satnitation - Moving towards a Global Agenda ____World Development Joumal Volume 26 Number 6 Jun.-9Regulation and Private Participatlion in the Water and Sanitation Sector GWP - TAC Background Judith A. ReesPapers

0 Study on Identil'ication of Current Options ol' Financing Community Based Water Supply and Muriuki, et alSanitation ServicesI Improving access to sale water supply and sanitation: Senegal long term water sector projectT Tapping the Private Sector - App roaches to Managing Risk in Water and Sanitation Davia Haarmeyer Ashoka Mody3 Competition in Water London Economics Apr 19984 Water Utility Pat-tnership Project 5 _ Apr-95 Refoming the Water and Sanlitation Secto-r in Af'rica - Overview of the Institutional Framework May-96 Financing Private Water Project7 Public Private Partnerships in Urban Water Supply and Sanitation Jan. Janssens, et al8 Water and Wastewater Demonstration Projects lor Small Urban Area in Chile L. Femando Requena, WB Lord9 Water SlIpply Issues in the Peri-Urban (Inf'ormiial) Sector. Field Report No. 335 R. McGowan, J. Hodgkin, P. Kaplan() Sustainable Peri- Urhan water and Wa.ste Management Inl'rastructure. A Model for the Future J.J HukkaI WB Experience with the Provision ol' Inf'rastructure Services for the Urban Poor: Preliminary Christine KessidesIdentification & Review of Best Practices -2 VIDEO - Urhani Water Supply Policy and the Private Sector in Mozambique EDYWORLD BANK3 Thirsty Cities Water. Sanitation and the Urhan Poor Maggie Black, et al4 Urban Waler Maniagement: French Experience around the World Dominique Lorraine

I.BER; Kibera AMA. Documents Reviewed

Annlex 1: LIST OF DOCUMENTS REVIEWED FOR KIBERA WATER AMA ASSIGNMENT

0 Title Author/Org. Year_ Proposal for a Multi-Agency Programme for Integrated Water Resources Management in Peri-urban HABITAT, UNEPAreas, Kibera slum developnment, state ol wialer and .sanitation Muigai A. KWAHO 1992L Staff Appraisal Report, Kenya Third Nairobi water supply project World Bank 198'3 Model management conLract, Annex I) Aide memoire

_199,) Private sector participation in Lhe water and wastewater sector: Lessons from six developing countries D. Rivierar WB Staff Appraisal: Brazil water project foI municipalities and low-income areas . 198'The Other Path: The Invisible Revolution in the Third World Hernado de soto 198'3 Thematic Group on Services for the Urban Poor: Urban poverty: Country case studies: IndiaThe Role of Goveinment in AdjusLing Economnies: Paper 17 Sri Lanka: Urban water supply _Comprehensive Assessment ol lhe Freshwater Resources of the World Marianne K.,Gordon M.) Developmient of a Sustainable water supply and Sanitation Programime for small Towns for an Mustapha Bukaraccelerated water supply coverage in Nigeria.Thematic GrouLp on services lor Lhe Urban poor: Urban Poverty: Case Study series: Krygyz Republic-Pilot peoples Based Development Project.

__ _Strengthening Capacity of Water Utilities to Provide Water Supply and Sanitation services,Environmental antd Hygiene Educattion in a Sustainable way to low Income Urban Areas: Case Studyof Lusaka Water and Sewerage ComnpanyBest Practice Investigation: Commmunity Organization, Systems and Approaches to Peri-Urban WaterSupplyBusiness Parlners lor Development Programnme: Pilot project In The Edendale District, Pi July 199etermaritzburg, SouLh AfricaIndicators : Water and Wastewater Utilities Yepes G, Diandera A 199Minutes of 7 monLhly meetings of the Kibera Water Distribution Infilling (KWVDIC) planning group . 199'Water and Sanitation services in inlormal settlements : Lessons learned from Kibera, Nairobi Mukami Kariuki

2.BER; Kibera AMA, Documents Reviewed

11 1 1 1 1

- u - m m m

Annex 1: I,IST OF DOCUMENTS REVIEWED FOR KIBERA WATER AMA ASSIGNMENT

'F ritle Author/Org. Year

Toolkits for private Sector participation in watei and sanitation World Bank. 7Karatina town water and Sanitation Pilot project BER 199CWater use and management of minor urban water supplies in Kenya BER 198Managenient ol Consumer water mcter's in Malilndi BER 1994Revenue collcction in six urban walCI suppliCs in Kenya BER 198Managenenl experiences at KabukLu BER I_99_Study on CommLnity Managed Water Supplies, Kenya BER 199aThe Growth ol Kibera: From Nubian Enclave to Squatter Estate Mango 198(Ngagaka Managernent Expeiience BER 199,Agetip: A New ResourIce to mIeCt thC urnilll chIallenge Leslie Pean Feb. 199Private participation in water supply ill Cote d'ivoire and Guinea Thelma Triche Oct. 199(Rent - Seeking in Water Supply W & S No. WS-5 Laszlo Lovei and Dale May 199

WhittingtonNigeria: Willingness to pay or urban water services World Bank Aug. 199Households'willingness to pay for improved sanitation in kumasi, Ghana: results of a contingent Whittington, Lauria, Jan. 199'valuation study W & S No. SW-7 Wright, et alNeeds Asscssment ol urban Environmental Sitation issues in Kibera Informal settlement Malombe J & Kimata D.Study of public waler points (Kiosks) in Kibera, Nairobi. BER Sept. 199Kibera Taskforce Survey on Identificaton of Development Opportunities Thariki Karanja, Kibe M et Jan. 199C

al - Undugu Society ofKenya

Situation Analysis StLudy on Slum Dwellers at Kihera .: Onyango Philisla 198'_A Rapid Assessnicnt ol tdc EIfccts ol Rapid Inllation resulting from Devaluation on family Unicef Kenya May 199ExpenditLurc patterns in Kibcra, Nairohi.Nairobi Informal Settleiments: An Iinventory Matrix Development Marct

Consultants 199

3.BER, Kibera AMA, Documents Reviewed

I I I I

IIIIIIII

I Annex II

I Stakeholders Consultations'IIIIIIII

I I I

I

l

KIBERA WATER SERVICES: ALTERNATIVE

MANAGEMENT ARRANGEMENTS STUDY

Report on Stakeholders Consultations

l

I Prepared for RU'SG-ESA5 by

Business and Economics Research Company Ltd.I 276 Karen RoadP.O. Box '1770Nairobi. KenyaPhone: 2s4-2-882103Fax: 254-2-882011E-mail: ber@ iconnect.co.ke

15 December, 1998

Ir

I I I I

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I Table of Contents

Title Page

Introduction 2

Summary 3

I I Consultations with Kibera Resident Stakeholders 5

Village Elders Meeting 6

I Opinion Leaders Meetings 7

Community Based Organizations (CBOs) 9

Tenants 12

Market Operators 13

Non-Governrnental Organizations 14

Institutiona,in Kibera 16

Kiosk Owners 17

Structure Owners 19

I II. Consultations with NCC-WSD 22

Consultation with the GM, WSD 22

| Consultations with NCC-WSD Commercial Section Staff 22

Consultation with NCC-WSD, O&M (Kampala Road) 24

Consultations with NCC-WSD Nairobi Dam Staff 24

I I. Consultations wvith NCC Councilors 26

l.ANNEXES:

1. Checklist for Kibera Stakeholders Consultations11. Basic Water Services Mlanagement FunctionsHII Consultations ParticipantsI | IV Timetable for Consultations Workshops.

I I I I I I I I I I I I

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I'

Introduction:Section E5 of the TOR directed that stakeholders, beneficiaries andexperts/specialists be involved through workshops in identifying and suggestingpossible ways of improving the management of water services at the Kibera and inselecting the management altemative to be adopted.

The identified stakeholders who were expected to be consulted were:

i) Village Leadersii) Structure Owners/Owners of private connectionsiii) Kiosk Owners/OperatorsI iv) Water Vendorsv) CBOs/Village Water Committeesvi) Tenantsvii) Marketsviii) NGOsix) Other Institutions, including schools and Churchesx) NCC-WSD Nairobi Dam and headquarters staffxi) City Councilors, especially members of the Water Sub-

Committee.

Nine of the 11 categories of stakeholders (i-ix) comprised Kibera residents whilethe last two (x-xi) consisted of non-residents. For these 9 the consultant prepared achecklist of operational functions and the management problems identified earlier bythe RNA and the Kiosks Study on each function as basis around which theconsultations would be conducted. The checklist consisting of 5 major functions inthe provision and management of water services was discussed with and agreed toby RWSG-ESA before application. The 5 functions were:-

* Licensing,* Management of Consumer Meters,

Billing and Payments,Maintenance and repair of Pipes, and,

* Regulatory.

I A copy of the checklist is enclosed as Annex I.

For NCC-WSD staff. Lhe 26 functions described in Annex 1I formed the basis of* consultations.

The consultant held 23 consultations sessions with representaLives of the 11categories of stakeholders: 17 of the sessions were with resident Kibera groups. 5

* with officials of NCC-WSD and 1 with area Councilors. A total of 124 personswere consulted of which 114 were area residents and 10 were NCC-WSD officers.A full list of the participants at the consultations workshops is appended as AnnexlIl while Annex IV oives the dates the consulLations were held.

Summary:

1. The 17 sessions held with Kibera resident groups concluded that,* Provision of water services is unsatisfactory to all, NCC-WSD, Kibera

residents, water traders, CBOs and NGOs included.* The primary cause of this unsatisfactory situation is neither water shortage

nor technical/engineering defects, rather it is ineffective and unsuitablemanagement of the services. In this connection, the human factor ---principally unhealthy and corrupt relations between WSD staff and theconnection-holder --- is the chief contributor to ineffective management.This is best indicated by the refrain on 'corruption' on practically four of thefunctions they dealt with. NCC-WSD services have, effectively, been takenover by the relationship to the almost complete removal of the WSD.

* This situation is not sustainable and that continued provision of waterservices is threatened. Something must be done, and sooner, rather thanlater.

Suggestions made by these resident Kibera stakeholders for improving themanagement of water services revolve around creating partnerships between theNCC-WSD and organized area residents in the performance of some functions. Thestakeholders proposed the formation of a Kibera wide body called Water CentralCommittee (WCC) and also village water committees (VWC) to work inconjunction with NCC-WSD staff in performing various functions.

* licensing of connections:majority of stakeholders proposed that the "committees" formed shouldissue, process and approve applications for water connections inconjunction with NCC-WSD staff. When any approved water outlet is beingfixed representatives of the "committees" should always accompany NCC-WSD staff.

* metering and reading of meters:majority of the stakeholders suggested that meters be available at NCC-WSD Nairobi Dam offices, all connections be fitted with working meterswhich are adequately serviced, repaired and maintained. Representatives ofthe "committees" should always be present when meters are being installedor read. The Pre-paid meter should be tried in Kibera after demonstration ofits efficacy.

* billing and payments:stakeholders were not in a position to comment and give suggestions onbillings as they did not understand the process involved in preparation ofhills although they complained that bills were often late and too high. Theysuggested that bills be promptly despatched at month's end and that apayment point be established at Nairobi Dam offices.

* repair and maintenance of pipelines:stakeholders suggested that NCC-WSD should be responsible for repairingand maintainine mains while "committees", in conjunction with connection-holders, assume the responsibility of repairing and maintaining servicelines.

A closer look at the proposed membership, recruitment and responsibilities of theproposed "committees" indicates that the "committees" are, in fact. oroanizationswith members who elect executive committees. Stak-eholders proposed setting up amember-based organization at each village, the so-called VWC, for participation inthe management of some of the functions. Suggestions for membership of thisvillage level organization were made and the most common categories identifiedwere structure owners (landlords), kiosk owners and CBOs.The proposed Kibera-wide WCC seems to be expected to be a loosely formedorganization with delegates from each of the nine village VWCs.

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'

I 2 NCC-WSD Officials also noted the unsatisfactory character of water services atKibera, a situation which they attributed principally to lack of institutional autonomyof the department. Absence of departmental autonomy was seen to be the primarycause of ineffective management of water services at all levels and affects themanagement of all functions.

NCC-WSD officials favour a partnership between organized Kibera committees andherself. While the majority Kibera resident stakeholders proposed formation ofpartner organizations, one for each of the nine villages, NCC-WSD officials seemto be attracted to one large partner for the whole of Kibera.

I NCC-WSD officials that organized Kibera people should purchase water fromNCC-WSD, in bulk, and distribute it internally without much departmentalinvolvement. The role of WS department would mainly be the production andI delivery of water to the bulk meters and also to repair and maintain the maindistribution pipelines. NCC-WSD staff believe that, such a partnership wouldincrease revenues to the council while reducing expenditures and involvement. Theynoted that success of the pilot project depended critically on the degree of autonomyand the latitude allowed to the project to make its own decisions and enforce them,subject, to agreed regulatory norms.

I 3 The Kibera elected Councilor proposed formation of a regulatory board representingall stakeholders, including NCC-WSD, structure and kiosk owners, tenants, CBOs,NGOs and the local administration to oversee the operation of an AMA.

l

l I .I

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IIlI

I I I I I I I I I I I I

I. Consultations with Kibera Resident Stakeholders

1.1. Experience in many parts of the world have indicated that participation andinvolvement of stakeholders (especially of would-be-beneficiaries) in theidentification of possible solutions to a problem and in the selection and choice ofone or more solutions increases the chances of success of the solution(s) adopted.

* The consultant has attempted as much as possible to involve Kibera area residents in(a) understanding and defining the nature of the water management problem atKibera, (b) identifying the problems encountered in different functions duringprovision of water services, and (c) suggesting improvements. Nine categories ofarea resident stakeholders were identified for consultations. These were:-

| * Village Elders and Opinion Leaders* Structure Owners/Owners of private connections* Kiosk Owners/Operators* Water Vendors* CBOs/Village Water Committees* Other Institutions, including schools and Churches.* Tenants

| * ~~~~Market operatorsNGOs involved in Kibera water

| 1.2. Selection of groups and individuals to represent each of the categories and sub-categories was undertaken as follows.

* Village Elders and Opinion Leaders:The Village Chairperson (or the Vice Chairperson in his absence) was

* invited automatically selected. These Chairpersons are also the 'eyes andears' of the provincial administration and they are well known.

* Opinion leaders:'"P * Structure Owners/Owners of private connections:

A contact person in a village was asked to name five owners of structuresfrom which list the team picked two randomly.

* Kiosk Owners/Operators:A contact person in a village was asked to name five owners/operators ofkiosks from which list the team picked two randomly.

* CBOs/Village Water Committees:I The RNA had provided a list of CBOs in each village. The facilitatorstogether with the consultants brainstormed on the list and came up withspeciIfic CBOs that were going to be consulted

| * OLher Institutions, including schools and Churches:Similarly, the RNA had provided a list of institutions in each village. Thefacilitators together with the consultants brainstormed on the list and cameup with specific instituLions that were going to be consulted

* * Tenants:A contact person in a village was asked to name five tenants from which listthe team picked two randomly.I * Market operators:

* NGOs1.3. The consultant organized a team comprising Ms. Joyce Musuvi, John Ondari, Ann

Nyambura , Hussein Galgalo and Ken Motari (both residents of Kibera) to informI and mobilize the selected groups and individuals and draw up a Limetable for theconsultations over a period of two days. To ensure that the persons, CBOs. andinstitutions invited attended, the same contact person went back to remind them ofI the proposed meeting a day before the consultation day. As the list of attendantsindicates, turnout was good except in the case of tenants and market operators.

l

1.4. Sp t&m to creae awaiwss on dt WrUe of the Consulions among ParsKibera has been much studied. Many of the participants were well aware of some ofthese past studies in which some of them had participated. They were also aware ofthe physical improvements currently being undertaken although there was confusionin respect to these improvements being seen as a separate World Bank watersupply.

The consultant prepared a checklist of operational functions and the managementproblems identified earlier by the RNA and the Kiosks Study on each function asbasis around which the consultations with area residents would be conducted. Thischecklist was discussed with and agreed to by RWSG-ESA before application. Acopy of this checklist is enclosed as Annex II

At the commencement of each session, the purpose and objective of the consultationwas explained to the participants. The participants were also taken through thechecklist of functions and the management problems associated with each function.Participants were also asked to provide additional problems to the checklisL

Participants discussed the problems associated with each function, proposedpossible solutions, how they can be achieved and who would be responsible. Thesession by session summary of the 17 consultation discussions is now provided.The summaries have reproduced as faithfully as possible the discussions whichtook place even at the risk of repetition.

1.5.1. Village Elders Meeting-All the villages, except Soweto, were represented at the Village EldersrConsultation meeting. After an extensive discussion of the problems facing

mKibera residents in regard to water the eight village elders made the followingrecommendations as solutions to the problems.

Formation of Village Water Committees:Village elders proposed formation of village water committees in each of the ninevillages to manage water in Kibera.Members of the village committees should be restricted to resident structureowners and tenants appointed by non-resident structure owners.The committees should be chaired by the village elders themselves.

Functions of a village water committee should include the following:-* Setting by-laws governing water applications. They suggested that only

landlords should apply for water as they are permanent in Kibera..* Issuing and receiving application forms from applicants,* VisiLing thc plot to establish where the connection would be hooked* Approving such applications. processing being done at an office to be

established in Kibera area.* Patrol]ini to cnsure that no ille2al connections exist.

Mcterin:The participants hrietll cxplained the situation of meters in the current watersystem. To improve on meters Lhe following suggesLions were given:-

* meters should be brought closer to the people,* installation of meters should he done by professional people, say from NCC.

at the recommendation olf the Village Water Committee. The meter should beinstalled next to the w ater tank or consumer feeding point in order to avoidvandalism.

* the Villace Water Committee must be involved during meter readingTs. If CityCouncil staff must continue reading the meters, Lhey must seek clearance fromthe committees before going to do this work. The committees should providetheir own persons to accompany city council staff to ensure that all meters areread and correctly.

Use of Pre-paid meters was enthusiastically discussed, and seen to offer solutionsto the many problems facing meter management, including reduction of corruptionamong meter readers and at the same time increasing collected water revenues atminimum cosL

General and Transitional Steps:According to the elders, the above recommendations can only work if the existingI water system is disconnected to pave way for the operation of the new one. All oldconnections should be removed and fresh applications made by all those who desireto be connected. This was seen as an easy way of tracking down illegal connectionssince the applicants should have to pass through the committees for approval: allholders of connections should be required to prove their legality by comparing thesame with city council records. Existing legal connections should be given the firstpriority in the new system and their application fees waived.

Opinion Leaders MeetingsTwo consultations were held with village opinion leaders.

1.5.2. First Group of Opinion Leaders:The first group of Opinion Leaders proposed the following:-

I Formnation of water groupings within each village:The opinion leaders decided to call these water groups village water committees.Membership to the Village Water Committee should be limited to representatives ofI resident landlords in all the zones in a village . Participants argued that it would beeasy to get in touch with such committee members when the need arose. Where noformal zQnes have been defined, such as Soweto and Mashimoni, resident landlords

| should clAose committee members from each comer of the village.

Some of the duties to be performed by the committees include:* manage water supplies in the villages, including setting up water rules,

* * issuing application forms for connections, processing and approving suchapplications,

* uncovering and following up illegal connections and disciplining the culpritsaccording to the rules set by the committees e.g. banning the person fromselling water, disconnecting the water, imposing fines , etc.,

* ensurino that water is not wasted through unrepaired pipes,| * ~~~~controlling the number of water kiosks, and,

To * detemininc the water prices charoed consumers. Participants suggested thatpricing of water should be uniform in all villages.

To be effective Lhe comminttees should be empowered by both the NCC and thecommunity members and be given some legal status. They also pointed out thatthere should be no interference from the NCC once the committees have been put in

3 place.

Metering:The opinion leaders suggested the following solutions towards consumer meterimprovement:

all water connections in Kibera should have new working meters,the villa2e water committee should take the responsibility of listing all thoseowners ot connections who currently own meters. Their names should becounLer checked with City Council records for confirmaLion.

* all connection holders should re-apply for new meters and those found to have| properly acquired meters should get new ones without paying extra costs

Two types of meters were introduced to the participants. These are pre-paid meters3 and bulk master meters. The participants noted that the two could reduce the

workload for the village committees as well as NCC interaction with connectionholders which, in turn, could reduce corruption.

Meter Reading:meter readers should ensure readings are taken every month and bills sent intime. This should prevent accumulation of bills. The pre-paid meter wouldeliminate the need for meter reading and delayed bills. Should the Committeesfind it necessary to have NCC staff to do the reading of meters, it should bedone with the committees approval.

Pipe Maintenance and Repairs:On maintenance and repair of pipes, this meeting of opinion leaders felt that villagecomnmittee should take the responsibility of reporting any breakages of the mains toNCC staff who should repair them. However, the community, through thecommittees, would repair service pipes.

Transitional Arrangements:According to this group of participants, the above recommendations can onlysucceed once the existing water system has been removed and people asked to applya fresh. However this transition should be done carefully to avoid anyinconveniences.

1.5.3. Second Group of Opinion LeadersGroup two of opinion leaders gave the following recommendations:

Licensing of Connections:This group felt that licensing procedure could be improved by having villagecommittees as the only people charged with the responsibility of processingapplications for connections.Membership of these committees should comprise structure owners residing inKibera and some leaders who satisfy certain criteria, such as honesty, goodleadership qualities, good morals, etc.

The committees should undertake the following application approval related tasks:* issuing application forms to potential applicants replacing the present practice

of collecting such forms from city hall,* setting of rules governing application of connection,* receiving forms for processing at Kibera,* After processing, the committees should collect the necessary payments from

applicants and issuing them with receipts and forwarding collected amounts toNCC.

* Once the applications have been processed and approved, the villagecommittee should liaise with the plumbers from NCC who should be directedby the water committee to hook the applicants to NCC mains to ensure that theminimum amount of time is taken in hooking up,

* the committee should also ensure that only those who qualify according to therules get connected to water and that there are no illegal connections withintheir respective villages.

Meterino:* acquisition of consumer meters can be made easier Lhrough transferring the

responsibility of buyinc and selling meters to Nairobi Dam Area office. NCCshould ensure that there are enough meters at Nairobi Dam offices to be issuedwhen needed otherwise the committees should make alternative arrangements,

* installation of meters to all connections,* all connection holders should re-apply for new meters,* village committee should guide the exercise of installing new meters since

consumers should have reported to them.

I'I'

3 The use of the Pre-paid meter was discussed and its potential for reducing the manyproblems currently experienced noted. However, this group of opinion leaderssuggested that the pre-paid meter be tried and demonstrated to show how it worksbefore it is adopted.

* Participants also discussed bulk master meters whose introduction, it was felt,could help reduce the problems between the City Council and Kibera residents.Master meters could also help to track illegal connections as well.

Meter Readine:Current meters are hardly read. Meter readings should remain the responsibility ofNCC staff who must read meters monthly but who must be accompanied byappointed committee members during their reading of meters.Maintenance and repair of meters should be done by qualified personnel. The meterreaders should inform the consumer in case of any defects. The consumers should,in turn, inform the committee who should then work to see that the meter isfunctional.

3 Billing and Payments:Bills based on estimates are too high for consumers. Participants suggested thatmeter readings should be translated into proper bills promptly. Bills should be sentto consumers who should make payments to the nearest NCC office through thevillage water committee.

Maintenance of Pipes:I This group of opinion leaders felt that as the mains are being brought closer toplots, it shpuld now be possible to outlaw plastic pipes in favour of GI ones. Onceinstalled the community should take the responsibility of repairing their individual3 pipes, while in case of any breakages in the mains, the committees shouldimmediately report to NCC who should send someone to repair.

Community Based Organizations (CBOs)Fifteen CBOs participated in these consultations at two meetings.

1.5.4. First Group of CBOs:I The first group of CBOs proposed as follows:-

Formation of Village Water Committees and an Umbrella Kibera-wide CommitteeForrnation of village water associations which participants decided to call a watercommittees. Some of the functions of the Village committees to include:

* issue application forms to structure owners who were said to be the onlypeople wvho should be allowed to apply for water,I * approve applications using guidelines set by the Kibera wide Umbrellaorganization,

* Supervise all water works being done in their respective villages,I * remove and ensure no illegal connections are put in place.Each of the committee must have a supervisor whose responsibility is to co-ordinatewater activities wvithin his/her village of jurisdicton.

I The nine village committees should form one Umbrella Kibera-wide organizationwhich should help CO-ordinate activities of village committees. Other functions ofthe Kibera-wide Oroanization include:I * fomiulate by-laws to guide villape committees in their activities,

* hire competent personnel to do the repair, maintenance and replacement ofreticulation pipes. meters and other fittings,

* authorize water connections, and,* receive payments on behalf of NCC from those applicants approved by the

village committees.3 An Umbrella office should be established and preferably at the chiefs compound.

The village committee offices should be located within the villages so that they areeasily accessible to the people.

All committee members should be issued with identification cards.

Licensing of Connections:Everybody who meets the conditions set by the central committee should beconnected.

Metering:Acquisition of meters should be made easier by bringing all the activities ofKampala road operation/maintenance department close to the people. Since theservices should be nearer, and the central committee should ensure that corruption isstamped out. The existing meters should also be removed and replaced with newones.

Billing and Payments:Participants in this CBOs meeting explained that many current bills could not bepaid because the amounts had accumulated over a long time. To improve on billingand payment, they suggested that meters should be read every month and readingsshould be translated into correct bills that should be given to the consumers everymonth.

Having been introduced to the pre-paid meter and master meters and how theywork, participants concluded that the pre-paid meter could solve many problemswhile the bulk meter could enhance a sense of responsibility among members of thecommunity.Maintenance and Repair:Repair and maintenance of meters should be done by trained staff who should actimmediately once informed. In case of any defects the meter readers should reportto the central committee who should ensure that the meter is rapidly repaired orreplaced.

Transitional Arrangements:Once the new water system is completed, all the existing connections should beremoved, but only after enough people have been connected to the new supply toprovide water to the community.

1.5.5. Second Group of CBOsThe second group of CBOs proposed as follows:-

Withdlrawal of NCC from active nanagement of water services at KiberaThe first step to solving the many problems associated with water in Kibera is toensure that NCC staff are not actively involved in the management of water inKibera.Formation of a Central Kibera-wide Committee and Control Office:They proposed the formation of a Kibera wide Committee with a central controloffice to be located at some central place in Kibera. The office should have a centralcontrol officer to be appointed by Kibera residents to assist water committees ineach village to manage their water. This office should also have a Clerk and aWorknman. Some of the functions of this central office include:

* to hire personnel to do the repair and maintenance work somc from NCC-WSD who have experience.

* give advise to village commilttees,* setLing rules and regulations to control water services in each area. includino

preparation of application forms. Only structure owners and CBOs should beallowed to apply for connection. CBOs were said to be the most suitable forapplication since they give the community a good service as their water prices

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

l3 are normally fixed and do not fluctuate even when there are shortages.

processing applications on the recommendation of village committees.

This Central Committee and control office should be financed from levies made onkiosk owners

Formation of Village Water Committees:This group of CBOs proposed that directly under the central control office, a villagewater committee should be formed in each of the nine villages. The committeemembers would be drawn from CBOs within Kibera, owners of water kiosks andstructure owners. Tenants should only be selected in cases where they act as agentsof the landlords staying outside Kibera. Members should also represent subdivisions that exist in each village. The committee members must be people whohave stayed in Kibera for along period of time. They must be people of good vision

* and who can make sound decisions.Each village committee must have a clerk and a plumber who would be paid bywater kiosk owners. Some of the responsibilities of the village water committeesare:-

* issuing application for connections,3 * ensure that connections are made only at specific areas as indicated in by-laws,

* patrolling pipelines.

3 Metering:As far as acquisition of meters is concerned the participants suggested that theseshould be brought closer to the people. Activities of Nairobi Dam and KampalaRoad O&M&-ection should be merged and brought in one place, preferably NairobiDam from where village committees should acquire meters for their members.NCC staff and the village committees should ensure that all connections are fittedwith new and working meters.1 However, replacement should only be done for those connections that are able toprove that they are legal.Those with illegal meters should apply through the village committee to obtain newmeters.

Bulk master meters were seen as reducing management problems currentlyexperienced. They should assist water committees to asses water losses and try toreduce such losses. Pre-paid meters were viewed as a good substitute to the currentmeters. They would reduce interaction between NCC staff and communityn members. The meters should also eliminaLe problems of billing and non-payment oliI billed amounts. This group of CBOs, however, wondered whether such metersshould be available in sufficient quantities.

h Meter Servicin:NCC staff and the cenLral committee should arrange how meters should be checkedoften to ensure that they are always working.

I Billing and Payments:Committees should arrange for readings to be done monthly and correctly. Meterreaders should be accompanied by committee members during the reading olI meters. The readings should be translated into correct bills and sent promptly to theconsunmers.

Participants suggested Lhat the owners of meters should be trained on how thereadings are taken and translated into bills to enable them to compare theircalculations with the bills they receive so as to minimize conflict.Transitional Arrangements:

As far as the new water system is concerned the participants explained that once theproject was complete, it should be merged with the existing system and broughtunder the management of the committees. However there should be need of firstremoving PVC pipes in the existing system and replacing them with GI pipes.

TenantsThree groups of tenants representing all the nine villages participated in theconsultations.

1.5.6. First Group of Tenants:This group of tenants proposed as follows:-

Formation of Villa2e Water committees:According to this group of tenants, the village water committees should not onlycomprise of landlords and kiosks owners but also some tenants which wouldensure that all the people in Kibera are represented and that the tenants have a placeto present their grievances.These village committees must carry out the following tasks:

set rules and regulations governing connections and water services which donot favour some parties and ensure that such rules are followed. For instanceeverybody should be allowed to own a connection as long as the rightapplication procedures have been followed,

* asses all connections in each village in order to establish legal ones fromillegal ones,

* fix water prices which should be uniform for the whole of Kibera and shouldnot be allowed to fluctuate,

* ensure that residents get clean water by, for instance, setting days for cleaningstorage tanks,

* patrol and assess the condition of the pipes frequently,

Each village committee should also have a coordinator who should be goingthrough the villages to collect any consumer grievances and forward them to theother committee members for discussions.

Once the on-going water project is complete, those who are running water kiosksshould be given first priority in the new system as long as their current connectionsare legal.

1.5.7. Second Group of TenantsGroup two olf Lhe tenants gave the following recommendations:-

Formation of villa2e water committees in all the villages:Composition of the water committee to include landlords, kiosk owners and LenanLsto represent Lheir collcagucs.

Some of the responsibilities of the village committee are:-* to oversee prices of water.* to patrol the villages discovering and disconnecting all illegal connections.

Evervbody should be allowed to own a kiosk as long as Lhe individual mcetsLhe rules and regulations set. Participants explained Lhat with many waterselling points, pnces are likely to come down,

* to distinouish connections allowed to have only WaLer for Lheir own donmesticuse from kiosks,

* punishing any unauLhorized person found selling water,* ensurinc that only GI pipes are used and that they are properly dug in the

ground.1.5.8. Third Group of Tenants

l

3 According to group three of tenants, NCC has already failed as far as watermanagement is concerned. In order to ensure that Kibera water is properlymanaged, it's management should be handed over to community members. Toimprove the current situation, community members would do the following:-

Formation of Villae Water Committees:Organize themselves into village water committees. Members of the comnmitteesI would be drawn from kiosk owners, structure owners and tenants. The functions ofthe committee would be:-

* to compile by-laws to govern the water services in the village. Only landlordsand CBOs should be allowed to have connections. Whoever violates the rulesand regulations should be liable for punishmenL

* to be issuing and approving application forms before forwarding them toNairobi Dam NCC's offices for final processing.

* * to control water prices so as to reduce price fluctuations.* to be accompanying NCC staff who may enter the village to do some water

work,I * to patrol pipelines for unauthorized shutoffs,* to ensure that all connections have GI pipes.

Maintenance and Repair of Pipes:As far as repair and maintenance is concerned, the NCC should take care of themains while the branches go under the care of individuals.

3 Metering:Thereiiwas need to install working meters at all connections at Kibera.

7:3 Meter Reading and Billing:NCC should ensure that readings are taken every month and translated into properbills which should be given to consumers on monthly basis. To avoidovercharging, meter owners should be trained on how meters are read andtranslated into bills so that they can also take their own readings and compare themwith the City Council's readihgs.

3 MMarket OperatorsTwo groups of market operators were invited to participate in the consultations.These were a group of operators stationed at Makina Market and the other wereoperating from the Laini Saba Market. Both groups are provided free water by theNCC for their market needs and most of the operators do not reside at Kibera. Inmany respects, some of the suggestions that these two groups provided did notarise from practical experience of water problems at Kibera.

1.5.9. Nlakina Market CommitteeAccording to the Makina market committee, proper water management can be

h achieved through the followving:-

Formation of a Kibera-Wide Central Committee:Formation of central water committee whose members should be drawn from the

* nine villages. The committee members should be mainly landlords residing inKibera. The Landlords should employ about 4 people to work in an of lice to beestablished in the village. These should include I supervisor, I person for financeI and 2 for operations and maintenance. The Central Committee's lunctions wouldhe:-

* take over the water related functions exercised upto now by village clders andthe chief,

* issue application forms and approve applications,* following up NCC to ensure quick hooking up of approved connections,

| * setting pipe quality standards and enforcing them,

* ensure that all connections have working meters all the time,* set up rules and regulations to be followed and penalize offenders,* hire own meter readers

Formation of Village Committees:The central committee should then choose some other people in each village to forma village water committee with the following responsibilities:-

* patrolling reticulation and service lines,* receiving reports on faulty meters for transmission to Central Committee,* supervising installation of connections,* supervising reading of meters

Hooking up to the NCC mains should be done by the NCC staff under supervisionfrom the village water committee.

Metering:* all connections must be metered,* meters should be so protected, in boxes, that only authorized meter readers

can gain access to them,* pre-paid meters may not work in Kibera as many people consume a lot of

water and might not want to keep on buying the cards. They expressed fearsthey might run out of business once the card expired.

Repair and Maintenance:As far as the main lines are concemed, the central committee should take theresponsibility of reporting to NCC for repair while the owners should beresponsible for repairing their lines.

1.5.10 Laini-Saba Market GroupThis is one of the meetings which was not well attended. Three persons representedthe Lain Saba market. Participation was poor as the respondents seemed not verywell inforned of what really happens with water in Kibera as most of them are onlyend users. The participants were most worried about water prices in Kibera. Theyexplained that these fluctuate so high such that only a few people can afford topurchase water. Though they pointed out that community based organizations werethe most suitable organizations that could run the water project, they expressed fearsthat many have come and gone, and the same might happen if the new water systemis put in the hands of these organizations. They felt that NCC should remain withthe water management but they should try and improve their delivery of services toKibera .

1.5.11 Non-Governmental OrganizationsRepresentatives from four non-governmental organizations working in Kiberaparticipated in the consultations and gave the following views:-

Transfer of Management Responsibilities to the Community:According to the NGOs, water management in Kibera can be improved by handingover its manaoement to the community members who know the problems withintheir community and how these can be solved.However, they expressed f-ears that community managers may not have enoughresources to run required acLivities effectively since the city council may not bewilling to release money for use in community established offices. Proper watermanagnement can. nonetlheless, be achieved through the following:-

* Establishment of a central office in Kibera where those who wish to applyfor connection can collect forms, instead of traveling to NCC offices in CityCentre. The office should have 9 people to run it; one from each village.Some two NCC staff members may be needed initially to assist in the take-

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I'| over process.

* Many stages which the application forms pass before approval must bereduced: such that only one office is left with the control of the application-forms in order to minimize NCC corruption. Corruption may, however, bebrought to an end if community members are empowered to run the projectindependent of NCC staff.

* The residents of Kibera must be made aware of their basic rights in order toease corruption, especially in cases where in the past, money has beendemanded for forms that should be issued freely.

Metering:In order to improve on metering the participants proposed the following:

* The nearest NCC office in Kibera to procure meters in conjunction with theKibera Central office.

* NCC together with the comrnittee must ensure that every consumer has ameter. The committee should seek for the services of experienced NCC staffto service the meters often to ensure that they are in working condition.I Assistance from NCC should continue until such a time that the centraloffice is able to hire its own staff. Kiosk owners, with the assistance of thecentral office in Kibera, must make sure that consumer meters are in goodworking conditions and in case where they are not functioning properly, theowners should report to the area committee for servicing.

Billing and Payments:On billing and payment, kiosk owners must be trained on how to read and translatethe readings into bills so that they can also take readings and compare them with thebills issuedaBilling to be done by the Kibera area office in consultation with NCC-I WSD Nairobi Dam office.Payments should be made to NCC through the Kibera central office.

Maintenance and Repair:On maintenance and repair, NCC should take the responsibility of repairing the3 mains while individuals should take care of the reticulation system. In case of anymisconduct from the NCC staff, there is no need of Kibera residents reporting toother NCC staff since through this method, the "disease of corruption" should notbe "healed". Therefore, a private organization should be set where such cases

* should be reported.

Monitorin-:Finally, the group proposed that once all the recommendations have been put inplace, the arranoement should be given about tw o years and if found not toimprove, a private NGO should be given the running of water services in Kibera.

3 Transitiona] Arrangements:The existing water system and the on-going water project should be brought underone management. In cases where an individual wishes to be connected to the newwater system, this should be done unconditionally as long as one had legallyapplied. As individuals get connected, the committee should ensure that pipes passthrough those areas where construction is not likely to tak-e place in future. Thisshould reduce problems like people coming and constructing houses overI someone's pipe thereby making it hard for the individual, especially when a-problem arises. to trace the pipe. Only GI pipes should be used especially in thenew project because the mains are close to the people. The committee should ensure

h that no one gets connected with PVC plastic pipes.

l

1.5.12 Institutions in KiberaThe institutions consulted included churches, schools and mosques. According tothese participants water management can be improved through the following ways:

Formation of Village Committees:Kibera residents should be organized into village water committees whosemembership should be drawn from landlords, kiosk owners and existing CBOs.

Formation of a Central Kibera Committee:From the village committees other members should be chosen to form a centralcommittee of the whole of Kibera village with an office at some central place.

Application forms should be issued by the village committees to the applicant, whoafter filling them should return them back for approval. The village commnitteesshould then hand them over to the central committees who should forward them toNCC offices for processing and approval. Everybody who has a premise where toput the connection should be connected.

In order to ensure that processing of the forms takes the shortest time possible, themany steps involved i.e. Chief - Nairobi Dam-City Hall and Kampala Road officesshould be reduced. Processing should begin and end at an area office such as theNairobi Dam.

Metering:To ensure that all water connections are metered, there is need to list all theconsumers who have meters in the current water system. This should be madeeasier by encouraging village water committees and NCC to work hand in hand totry and locate them.

Any connection found without a meter should be disconnected. On the other hand,for those meters found faulty they should be replaced with working metersunconditionally as long as they are legal.

Meter Reading:In most cases, NCC meter readers do not come to read meters. Instead, estimatesare given so that with time, the bills either accumulate or at some point theconsumers get overcharged so that they are unable to pay the bills.To correct this situation, NCC staff responsible for meter reading should alwaysreport to the village committees before going round to read the meters. Thecommittee should then appoint some of their members (trained on meter reading) to2o round with the city council meter readers and record the meter readings together.NCC personnel should be reshuffled such that for each month, a different group ofmeter readers is sent in by NCC. This should reduce a lot interaction between citycouncil official and connection holders hence reducing corruption.

Pre-paid meters held much promise though parLicipants requested a demonstraLionof the meters in Kibera before adoption.

Piping:Durino connection. the committees should ensure that no PVC pipes are in use sinceLhe w-ater mains are now closer to the people.

Kiosk Owners1.5.13 First Group of Kiosk Owners:

According to the first group the following may need to be done to reduce theproblems facing the Kibera residents as far as water is concerned:-

Formation of Village Committees:The community should be organized into village committees whose membersshould be kiosk owners, structure owners and CBOs.

Formation of Central Committee:From the village committees, members would be chosen to form a centralcommittee.

Processing and Licensing of Connections:Once these committees are formed, they should take the responsibility of issuingcommunity members with application forms. These forms should be filled andreturned back to the village committees who should approve them and hand themover to the central committee. The central committee should then go through them toensure that they meet the conditions set by the two committees before handing themover for processing.

For processing to be made easier, the current stages involved should be reduced.This can be done by putting all the activities of City Hall and Kampala Road intoone office i.e. Nairobi Dam, where processing should be finalized.

The two c mittees should undertake the following additional responsibilities:-

* fo pulation of rules governing application for connection,I * enseraing that all PVC plastic pipes are abolished in Kibera and that only GIpipes are in use,

* punishing those who violate the rules set by the committees,X * ensuring that only those who applied for water are connected. Anybody

found with an illegal connection should be punished according to the rulesand regulations set by the committees.

Metering and Meter Reading:Problems associated with meters in Kibera include their lack, presence of faulty andillegal meters. On the other hand, where meters are available, these are not read andhence the bills given are mainly estimates. To improve the situation, the participantsproposed the following:-

* the services offered at Kampala Road offices should be brought nearer to thecommunity. Once this has been done the committees should be given thepower to approve the application in the first place before they are handed toKibera NCC offices.

l NCC should liaise with the committees to find out those people who do nothave meters. Once found, the people should be required to apply for themfoLlowing the right channel.I * once the meters have been installed, NCC should ensure that these metersare read and bills despatched in time to the consumers who should make thepaymenLs at the area NCC office.

Participants were introduced to pre-paid meters and how they work. These were,however, received with mixed reactions; some saw that such meters could workwhile others felt they would not perform well in Kibera.

1.5.14 Group Two of Kiosk OwnersParticipants in the second group of kiosk owners felt that water management inKibera can be improved by reducing City Council's involvement and encouragingthe community members to take a major role in the running of their water supplysystem. The group noted that community members understand the problems thathave contributed to the deterioration of the existing water system and concluded thatthey were in a better position to provide possible solutions to these problems. NCCinvolvement should be replaced as follows:-

Organizing village water committeesMembers of the committees should be drawn from landlords who own waterkiosks, CBOs dealing with water and owners of genuine water kiosks. Thiscommittee should take the responsibility of issuing application forms to thecommunity members who wish to apply for connection according to the followingconditions:-

* ownership of a place where the connection should be installed,* a place or space where pipelines can pass to avoid the current habit of pipes

that pass through other peoples houses,* using GI pipes as opposed to plastic pipes.

Formation of Central Committee:From the village committees, a central committee should be chosen whose memberswould be representatives of the nine villages in Kibera and whose role should be tosolve any problems that the village committees cannot solve. For example, after anapplicant has filled an application form he/she should return it to the villagecommittee who should check whether the individual qualifies. Once the villagecommittee qualifies the individual, the form should be passed on to the centralcommittee who should forward it to City Council offices for processing. After theform has been processed and approved, the central committee should follow up toensure that hooking does not take long. Only City Council staff should hook theapplicant to the mains. These plumbers should be people who are known by thecommittees, and each time they come to hook, they should do so under thesupervision of these committee. Any other person found hooking should bepunished according to the by-laws set by the central committee.

According to this group of Kiosk owners, services offered at City Hall andKampala Road O&M sections should be brought to Nairobi Dam offices.

To ensure that there is no corruption among the committee members and NCC staffthe participants suggested that a separate office should be set up in Kibera wheresuch cases should be reported. This office should be occupied by people who arcneither from City Council nor Kibera community.

Meterin:The group confirmed that majority of the consumers in Kibera had no meters. Thefew who have meters find that they do not work at all or that are faulty i.e. movefast and over charge on bills. In order to solve the problems of meters theparticipants suggested that

* evervbody who has a water connection in Kibera should apply a fresh.those found with legal meters should be given first priority. once the on-going project is complete,

* the central committee should work together with City Council stafl to 1indithose who have legal meters and those who do not have at all. The peoplewith meters should produce the application forms which the Council staffshould counter check with their records,

* every consumer meter should be regularly checked to ensure that they are in

good working condition. Alternatively, and where a meter breaks down, theowner should report to the committees who should get the City Councilpeople to repair. Anybody found using a meter that is faulty should bepunished by having his/her meter taken and the water disconnected.

The Pre-paid meter was introduced to the participants. Participants expressedinterest in them though they suggested that there was need to have themI demonstrated. Master meters, on the other hand, were welcomed by all theparticipants since they would assist village committees know and plan for theamount of water delivered to their respective villages.

Structure OwnersThree groups of resident structure owners participated in the consultations. Aneffort had been made to invite some non-resident structure owners but none of them

I turned up.1.5.15 Group one of Structure Owners

This first group of structure owners made the following contribution.

Formation of Village Water Committees:Management of water in Kibera may be improved by formation of committeeswhich should be looking into affairs and services of water supply.Licensing of Connections:The problems encountered during licensing can be improved by availing application

forms to the nearest offices in Kibera, and shifting the responsibility of approvalU from the chief and the village elder to the committees. The Committee should^ set-rules to govem application for connection,* isswing application forms to applicants,I * besapproving applications,

folTow up to ensure that hooking does not take long. This can be madeeasier by bringing plumbers in the area office who should connect thepeople to the mains. These Plumbers should however need to be supervised

X by appointed members of the committee in each village,* find, together with NCC staff, illegal connections and disconnect them,* organize patrol teams which would be checking out illegal connections,* enforce rules and bylaws.

Members of these committees should be landlords who own water kiosks, legalwater kiosk owners and who might not be owners of structures and members of

* existincy CBOs in Kibera. In each category, the people chosen should be living inKibera who have stayed there for more than 3 years. They must be people of highmoral values and who have qualities of leadership.

NCC services should be placed under one roof so that people do not move to manydistant offices such as City Hall, Kampala Road and back to Nairobi Dam Offices.

Repair and Maintenance of Pilpelines:NCC should continue to repair the mains while community members should repairtheir own pipes. During connection, village committee should ensure that only GIpipes are used. All plasLic pipes should be abolished.

Metering. Service. Repair and Replacement:As far as meters are concerned, new ones should be installed. This is becausemajority of the meters in Kibera are faulty. The committee should keep a record ofall the meters in Kibera. Once the meters are found to be faulty, the owners shouldimmediately report to the committees who should inform the area NCC office to getpeople to come and repair them.When participants were introduced to master meters and pre-paid meters and howthey work, they expressed interest in the pre-paid meters. They requested for

demonstration before such meters are adopted.

Meter ReadingMeter reading should be done on monthly basis and bills given on time so thatconsumers can pay. Payments should be made at Nairobi Dam Offices.

Water Prices:As far as water selling is concerned, the committees should ensure that prices areuniform in the nine villages. Consumers should be advised to report to thecommittees in case of any hikes for action to be taken.

Transitional Arrangements:Once the on-going water project is complete, the participants suggested that theexisting water system and the new one should exist together. However, in thecurrent water system, any connection done from outside Kibera i.e. Show ground,Woodley, Ngumo estate, etc. should be disconnected. The committee should thenlink up with City Council staff to find out those with legal connections and thosethat are illegal. Once found the legal connections should be brought under themanagement of village committee, while the illegal ones should be disconnected andtheir owners required to apply through the new channel.

1.5.16 Group Two of Structure OwnersAccording to this group of structures owners, in order to improve management ofservices the following steps should be taken.

Setting up village water committees:Members of the committees should be landlords who own water kiosks and kioskowners who have legal connections. These members should also be people whohave lived in Kibera for a long time (i.e more than 3 years). During selection of thecommittee members, the concept of "Gender balance" should be observed.Such committees should be responsible for

* handling and recommending all applications for connections,* assisting NCC in processing applications,* working together with NCC staff during hooking up,* setting bylaws and enforcing them, including disconnecting and imposing

penalties and fines.

Everybody should be connected to water as long as he/she has qualified.Processing of applications should take place at the Nairobi Dam Offices. Thismeans all services offered in City Hall should be brought to the Nairobi Damoffices.

The above arrangement can best work when the existing system has been removedafter the new project is complete. People should then be asked to apply a freshthrough the village committees. The committees should Lhen go through the formsto ensure that applicants meet the qualit-ications according to the by-lawks set.

Nleterin2:Since majority of meters in Kibera are not working all meters should be removedand replaced with new ones. Before they are removed. the villave committees andthe NCC statff should go round to get a list of all those people wiLh metcrs. All thosewith meters should be issued with new meters without being asked to pav again.Pre-paid meters could be introduced subject to there being a demonstration beforethey are installed. Without this demonstration. this group felt that they should herejected in Kibera.

| Meter Reading:Once installed, meter readings should be taken monthly and bills dispatched forpeople to pay.

1.5.17 Group Three of Structure OwnersAccording to group three of structure owners water delivery services could beimproved through the following:

* Organizing the community members into village committees. Members ofthe committees should be landlords residing in Kibera and representatives ofthe existing CBOs in Kibera.

* Once these committees are formed they should take responsibility of issuingapplication forms to the people who wish to apply.

* Powers should be bestowed upon these committees so that they can approveapplications.

Some of the qualifications to be considered for application are:-

* Ownership of a plot where the water can be installed. The participantsproposed that landlords should be given the first priority during application,I * An organized institution e.g. CBOs, a business group, etc.,

* Use of GI pipes as opposed to plastic pipes,* Hygienic state of the place where water should be installed.

U Once processing has been completed hooking of the individuals connection to themain water lines should be done by the NCC people who were said to be morequalified than community members. When they come to connect, they should passU through the committee members who should show them the people to be connected.This was seen as a good way of ensuring that no illegal connections were in usewithin Kibera.

I _ _Metering:

According to the participants, problems associated with meters can be solved byensuring that fresh applications are made by everybody and new meters installed.I However, those with legal and working meters should be supplied with new ones,without incurring additional costs..After participants were introduced to master meters and pre-paid meters, the formerwere welcomed and seen to be good for Kibera community. Pre-paid meters, on Lhehand, received mixed reaction with participants proposing a pretest of the meters tosee whether they can work.

I Mleter Reading:Once meters have been installed, readings should be tak}en on monthly basis andbills dispatched in time. Reading of the meters should be done under theU supervision of the committees. Payment should be done at the NCC area office bveach individual.

Transitional Arrangements:As far as the on-going water system is concerned this should be merged togetherwith the existing one and all brought under new management.

ll

I I I I I I I I I i

|!I

lII. Consultations with NCC-WSD

1. Consultations with the GM, WSDThe General Manager pointed out that the basic problems facing the management ofI Nairobi Water Supply have been well-known for some time now and aredocumented. In developing recommendations for water management arrangementsfor the pilot project at Kibera, the following matters should be taken intoconsideration:

* the arrangements should be based on partnerships between the NCC-WSDand beneficiaries, preferably organized beneficiaries,

* NCC-WSD should continue to be the source of water for the settlement.Conceivably this source can provide water through bulk sales to partnerorganizations,I * Existing NCC-WSD standards of O&M must be retained and improved byboth the department and partnership organizations,

* the whole arrangement must be sustainable in financial, economic, social,organizational and operational terms.

The challenge is to develop arrangements which address all the aboveconsiderations.

2. Consultation with NCC-WSD Commercial Section StaffConsultation started with brief reviews on the following aspects, particularly onI their relationship to Kibera:

* philosophy behind price and tariff setting,* metering,* billing,* revenue collection, and,* enforcement.

a). Pricing of waterTariff and price setting is done by the NCC under the provisions of the Water Act,CAP 372. Water prices are guided by the following:

* recovery of 0 & M costs,* provision for long term renewal costs,* current Economic realities,I | * welfare aspects.

NCC-WSD advises Council on the need for price and tariff revisions. ShouldCouncil accept to revise. the revisions are forwarded to the MW-R through Lhe

NIOLG. The Minister responsible for water affairs must accept the revisions beforethey can be gazetted to be elfecLive. Otten, through this process the initial proposalsfor revisions are altered. It was noLed Lhat it has not been possible to adopt optimumcost and renewal recovcry prices and tariffs, because resistance at various levels.

At Kibera the basic price charged the kiosk owner is a welfare price, shs l(.(X)/n-i

(US$ 0.17/m3 ) with the expectation that the water would be retailed at shs 0.20/percan of 18 litres. Unfortunately, the retail price is much, much higher. about shs.2.00 per 18 litre can.

U | hb) Metering, hilling,, revenue collection and enforcement:The cntire charging system for water assumes Lhat consumpLion is mcasuredLhrough Lhe meter monLhly, a charge placed on Lhe measured volumc as per theI | current prices and tariffs. By-laws suggest that metered connections are the norm.The architecture of the installed computer billing programs assume that connectionsare metered, meters are read monthly, meter readings are available for each

connection monthly without fail.

Unfortunately, insufficient facilities at the council, such as vehicles transport,makes it impossible to adhere to the assumptions and expectations of the chargingsvstem: metering is not universal, all meters are not read as required, some meterreaders take bribes from connection holders but it was difficult to discipline. Use ofPre-paid meters may offer solutions to meter readings and billing. This type ofmeter should be tried and piloted at Kibera.

There is no meter renewal program or policy and old and outdated meters continuebeing in use. There is need for policy changes in respect to replacement of metersand their ownership.

NCC collects relatively little revenue from Kibera as few bills are normally issued.The majority of the bills issued are based on estimates, estimates which occasionsconsiderable consumer complaints and disputes which take time to settle.

c) Inadequate Computer capacities:NCC still makes use of an outdated computer installed in the 70s. The Computerwas meant to process a maximum of 50,000 accounts but has since been over-stretched and processes over 200,000 accounts. WSD is allocated only about 20%of computer time, an allocation which has proved inadequate for the departmenL

The bill preparation program is designed in such a way that the persons keyinginformation must complete one billing group (BG) before bills for that group can beproduced. Bills for the next group cannot be produced before biHling for theprevious gro6up is completed. Similarly, if some meter readings are missing forsome accouiiis within a BG, a common occurrence at WSD, then estimates must bemade for them in order to be able to prepare for the BG.

Considerable billing at WSD is still done manually. Given the inflexible computerbilling program and the insufficient allocation of computer time, detection ofdefaulters takes too long and enforcement is often ineffective. Internalcommunication between bill collector and the enforcer is, often, poor. Similarly,processing of consumer complaints, correction of errors and feeding suchcorrections to the computer takes too long, not less than 6 months.

d) Need for Reforring the existing Institutional Arrangements:For NCC-WSD to function effectively, an institutional change providing thedepartment with substantial autonomy is a prerequisite. Past efforts at autonomyhave been too limited to he effective.Accordino to these officers, unless this institutional change is made, discussionsabout improvements in the department shall remain 'academic'. For these officers,therefore, it is not possible to 'delink' Kibera from the rest of Council ffiroughexwending the present decentralization of the Nairobi Dam Area office.

For purposes of the Kibera Pilot project, this group proposed that organized Kiberapeople purchase water in bulk and distribute it internally without much departmentalinvolvement. The example of water provision by NCC to EPZ was given. In thiscase. NCC delivers water up to a certain point and whatever happens Lherealter isEPZ's problem. A similar approach should he tried at Kibera. This ma! cvenincrease revenues to council.

There was also a suggestion Lhat combined bulk metering and use of Prc-paidmeters should be tried in Kibera. It was felt that this may work even in the long runas it fits to the current efforts at improving computerization.

I 3 Consultations with NCC-WSD, O&M (Kampala Road)This group of NCC-WSD O&M officials confirmed that these were seriousmanagement issues relating to operations, maintenance, repair and renewal of assetsnot only at Kibera but throughout the WSD establishment. These issues need to beaddressed in order to identify an appropriate AMA.

According to this group, NCC-WSD does not have any policy or program inrespect to routine servicing, maintenance and renewal of water assets. Only repair

* of broken parts is undertaken. Certainly, there is no policy or program for renewal.The following remarks made in respect to consumer meters hold for virtually allother assets: "it is not practical to go round checking every meter when there aremore urgent matters to be attended to".

Inattention to servicing, maintenance and renewal of assets is a result of perennialinadequate funding of the department. This forces the department to focus, almostexclusively, on operations. In such circumstances, even the repair which may beundertaken is that which is essential for operation.

| According to this group of officers, it is highly unlikely that NCC should developany working O&M, servicing and renewal system as long as the billing system atCity Hall remains poor.

Existence of unhealthy relationships between Council staff and Kibera connectionholders was recognized. These relationships need to be broken and if O&M is to be3 improved.

These problems notwithstanding, some other management arrangements should betried during the Kibera pilot project. Community members should be organized towork as partners with NCC-WSD. The community could be responsible for thereticulation system and other aspects such as meter readings and revenue collection.NCC should be responsible for bulk meters to be fitted for each village and maindistribution lines. NCC should enter into some management contracts withorganized community groups who would retail water. The organized groups shouldretain some revenues for the maintenance of the reticulation network and the otheraspects that they may be responsible for. In this connection it is important toestablish fairly accurately the costs of proper and adequate O&M.

The group also proposed that the pre-paid meter be tried in Kibera. These metersshould be tested and their financial returns established.

4. Consultation *-ith NCC-WN'SD Nairobi Dam Staff 8/12/98Participants reviewed the current state in Kibera as relates to water supply.I consumption and nmanagement. The problems identified in the Rapid NeedsAssessment and the Kiosk studies were confirmed. Some of the problems that ma;kecitv council manaoement difl-icult arc:I * existence of illegal connections,

* cozy relationships between NCC-WSD staff and Kibera residents.* unavailability of meters* use of old, unserviced and unrepaired metersI * meters located where they cannot be Lraced by Council meter readers* vandalism.0 irregularity in billin2

A management arrancement Lhat should work requires that Lhe WSD is indepcndentand autonomous from the rest of council. This may, howevcr, be a long temiobjective Ze

For the Kibera pilot project, there is need to isolate its operations from the rest of

the activities of the WS department, including Nairobi Dam Area Office. The pilotproject needs to be separated from the department to shield it from the institutionalconstraints which face the WSD. The pilot project's relationship with the WSDshould basically be one of purchaser of water although arrangements could be madeto second some staff to the pilot on completely different terms from those of theWSD.

NCC-WSD could install Bulk meters in each of the nine villages for monitoring thewater flows in each village. NCC could enter into a management contract with thecommunity for certain functions such as metering, meter reading and collection ofrevenue. The maintenance of the reticulation system in Kibera should also be theresponsibility of the community. Licensing and hooking up connections should beleft to the community.

These officers considered pre-paid meters as a replacement to the current meters.They felt that such meters held much promise in transforming management ofconsumers, billings and enforcement. Use of the Pre-paid meter could greatlyimprove revenue collection.

,',,

III Consultations with NCC Councilors

Two consultations with NCC councilors were planned: the first one with thecouncilors representing Kibera settlement in the Council and the second with thecouncilors sitting on the Council's Water Committee. The latter consultation did nottake place but that with the area councilor was held. The Councilor expressed hersupport for any AMA acceptable to the majority of Kibera residents, includingI tenants. She proposed formation of a regulatory board representing all stakeholders,including NCC-WSD, structure and kiosk owners, tenants, CBOs, NGOs and thelocal administration. She was particularly concerned that the proposed communityI organizations were inclusive of all the different interests in Kibera.

lIlIIII III I

1-

I I I I ! I I I I i I I

Annex 1: Checklist for Kibera Stakeholders ConsultationsFL]NCriON NATURE OF PROBLEM CAUSES DESIRED IMPROVEMENTS STAKEHOLDERS',

SOLtlTIONS/OPTIONS: HOW

1. 1,1CENSIM; AND BY WHOC(NNIF C()NSMlaking in Apl ticatiiim ( ostly s1ai 1h1iim Nniiceiots ret sentwers iiwrist he RCL IIICC iniiiib-e of gltekeel)rs to

S-tistied hbeore application can be essential OieCS only

Processing/Approval of lakes long Difficullt and cumbersome Made easy and quickApplicationi clearances passes through many

stages ie. NCC headquarters,New account unit, Nairobi Damand Kampala Road O&M.

I looking up approved o(itlet to Slow Lack of parts forcing applicants to Once an application has beenNCC main buy unstandardized parts approved and the necessary official

fees paid, hooking up should takedhe slhortest possible time

dInclfficiencies in staff allocation ofduities

Rent seekingIllegal Conn)ectionis Existence of llegal watlr Past policies when Council did Removal of all illegal connections

colnlnecl ions not encourage connections inKibera

Infilling to reduce distancesCouncil mains being far someconnections made to pipelinesserving sutrrounding estates

Cozy relationships between WSD The relationships need to bestatf and residents broken and professionalized.

Unaudnhoned Water Sales Considerable propxrtlion ol Shortage of water at authorized Sales of water should be legal andconnecx tionl holdlers sell water Kiosks properly regulatedattho,rigli niot aiitlon.ced

1higher tariffs and prices for kiosks Prices and tariffs should besufficiently differentiated as toencourage legalizing water sales

Cozy relationships between WSD The relationships need to bestaff and residents broken and professionalized.

1 BER: Kibera; AMA

Aninex 1: Checklist for Kibera Stakeholders ConsultationsFUNCTrION NATURE OF I)ROBLEIM | CAUSES DESIRED IMPROVEMENTS STAKEHOLDERS',

l l ~~~~~~~~~~SOLUTIONS/OPTIONS: HOWI AND BY WHO2 (CONSIIMI MI Ml Il:RI

Meter Acitlllolili l ujiilek l .iii1ii , tlot IlCqiiLd -illisillicicit C'otuicil lhuids Acquire tls requiredII el cI II wc led -leulgilly CuOlieCil prociurementt

procedtiurs

Meter histallation Not tIiniversal -unavailability of meters Universal metering of all outlets

-shared responsibility: Kampala End sharing of responsibilitiesRd. and Darn Office

Meter Absence of effective machinery for Ensure that at any one time aServicing/Relpairs/Rcp)lalc-iiment I'ractically Non-existent regular and systematic minimum of 85% of all installedidentification of faulty meters. meters are in an operational state

by establishing machinery forsystematic and regularidentification of faulty meters,

Absence of an adequately Create adequate mechanisms forequipped and provisioned meter servicing, repair and replacementrepair workshop. (The one at of metersKampala Rd is not adequatelyequipped or sufficientlyprovisioned).

The relationships need to beCozy relationships between Meter broken and professionalized.Readers anid Coniection Holders

Have all meters in effectiveIPossible that some meters may performance state.he too old and have spent their'economic life'

Meter Relding Irregul;a anld oflen iiiacciurate. NCC-WSD wide inabihty to Make readings regular and(Meters are read about 4 tunes per maniage and coordintate meter predictableYear inste:d of It tiies nrid even reading and other supportive%hlieu read 25%,, are lell out). efforts.

Inaccessibility of meters Proper documentation of meterlocation

Cozy relationships between MeterReaders and Connection Holders The relationships need to be

broken and professionalized.Ineffective supervision of thereading exercise Provide effectve supervision

2. BER: Kibera; AMA

I I I I I I ~ ~ ~ ~ ~~I I !iI

Annex 1: Checklist for Kibera Stakeholders Consultations

FllNCTION NATUJRE OF PROBLEM CAUSES DESIRED IMPROVEMENTS STAKEHOLDERS'DESIRED ~~SOLUTIONS/OPTIONS: HOW_________________________________ ________________I_________________AND BY WHO

3.131ILLjNGA ANI) PAYMINTS . . WHOTranslationi of Meter Readings (lleni inaccurate inaccurate infoniation, Accurate infonnationinto bills

Failure to relate readinigs to tanff NCC-WSD has an unsuitable Have an appropnate programsehedules leading to overcharging computer translation prograrn

Preparation of Bills Irregular, incomipletc aud often NCC-WSD wide inability to bill Make biUlings regular, accurate,iaccturate its customers regularly, including predictable and net all connection

translation of meter readings into holdersbills.

Bills Despatch No hills available ibr despatc l delays in preparation of bills Prepare bills regularly and oftenPayment Irregulair, tiikes too long, oftenl Consumer neglect, belief that

only negligible amounits are paid water should be free, irregularities Prompt payment of billed amountrelative to hilled amunont. in billing, disputes over amounts

billed, inconvenient pay points.

Staff interference End the interferenceIdentification ofl )eaulters fakes too long Cumbersome process involving Rapid identification of defaulters

inspection of records at different for rapid enforcement of paymentpay points and different accounts rules.

Enforcemenlt of paymNtS Ineficitivc Difficult and cumbersome process Prompt, just and effectiveinvolving numerous sections and application of known penaltiesdepartments

Inspectorate not answerable to Should be answerable to NCC-NCC-WSD WSD

Cozy relationships betveen The relationships need to beConnection Holders, enforcing broken and professionalized.and other staff

Reconnectioin oi Service 'oo slow Inefficiencies in staff allocation of Reconnect soon after paymentduties

Rent seeking Opportunities for rent should becurtailed

Processing ofConsunier Oftin unlresponsie awid slow Cumbersome procedures Simplify the proceduresComplaints involving numerous sections

Failure to feed the comnputer with Feed corrections to Computer onitrfomiation corrected manually the spot

3. Bl:R: Kibera; AMA

A.IL _awl Vt I xviuc;a Lt3IitmrAivtUrt-S -onsultaatons

IUN(CTION NATl URE Ol PROBLEM CAUSES DESIRED IMPROVEMENTS STAKEHOLDERS',SOLUTIONSS/OPTIONS: HOW

AND BY WHO4 MAINlIKNAN(TI ANI)RI:.lAIR ()] l ll ll.lNl SService 1,inc is in terpetcd in l3B- lrequient bursts, e\pensive to small sizes, unsuitable material Provide adequate and timelyLaws (installed hy conisliumer ) repair and maintain hy individual aund quality, shallow laid resources for repair andinvestors 'spaglhetti maintenance. *Communicalion 1ilp<: as Not yet Applicableinterpreted in WaTer (I Jn(lertakers)Rules (iisLille( hy the NCC)__

Mains Frequen1 bhursts and leakages insufficient Council funds Provide sufficient and timelyresources for repair andmaintenance.

Principal Mains Irequent bursts and leakages insufficient Council funds Provide sufficient and timelyresources for repair and

imaintenance.5. REGIJI.ATORY Coiiitcil -based is weak hietlective Council management Establish an effective Regulatoryutd supervision organ witih powers to oversee

pricing and quality of serviceCo,lililllity-basc( is fragile lacks legal backingSuch relationships must be broken

Cozy relationships between and professionalized_interests and Cotimcil staff

NB: * KWIDC will. hopefully, clinmiliate, or reduce substantially the need for the Spaghetti network.

4.BER: Kiberam AMA

II I I I I II !

-e - - -- m m m m m m m m Annlex II: BASIC WATER SERVICES MANAGEMENT FUNCTIONS

Function Function Requirements Occurrence Agency1. 1'roduictioni Ot piit, transmission, treatment, pumpiing, etc. Daily NCC-WSD2. Distnbtiljon Delivery of wvater to Distribution Mains Daily NCC-WSD3. City-wi(le Reticulation Dcihvcry of Water to Service Line Daily NCC-WSD4. larillSett:ig NCC-WSI)l Iarilf7s aund P'rices ' 5 Occasional NCC-WSD5 Appliciation lfor Conilcctioln Availability ofApplication Forms & documents Always6. Applicationl Processing Clcatuices wid paymeliis Occasional7. Applicationi Approval Satisfictiori of Conditions Occasional8. Establishirig the Coonnection Availability of materials Always9. Setting hInenmall'ariffs Pricing for end constnier Occasional

10 Meter Acquisition Availability of funds und meters AlwaysI. Meter Servicinig, RZepair and

Replaceinmiit Availability ol' infonnation & materials Always12. Meter Readirig Regilar according to known schedule Per schedule13. Truislation ot read(lings intol hills Availability of'readings Per schedule14. Preparaliom ol'bills Regular according to known schedule Per Scheduled Billing Dates15. Despatch of hills Regular according to known schedule Per Scheduled Despatch Dates16. Payment of bills Promptly, not longer than 14 days of Bill Per Payrnent schedule17. Bankirig ol' 'roceLds Collecte(d Revenies Within the day of receipt18. Identification ri l)efaulters Availability of inionnation on payments 15 days after Bills despatch

9. EnforcemenLt of laymnent Availability of List of Defaulters I day after identification .-0. Reconnection of service Satisfaction of Reconnection Conditions 1-3 days of satisfactionI2. Processing ol Consumer Complairnts Receipt of Comiiplaint Within 1-7 days of Receipt2. Opeatiomi anid Mainttenaice of'

Mains & primcipal Valves Availability of staff, materials & other inputs Daily3 Mainltniatice of iniernial Kibr m reticiliationi

& Valves Availabilitv of staff, materials & other inputs Daily '4. Renewal ani]d Expainsion of installationis Approved schedule of renewal & expansion As scheduled5. Managemienit of enire Service Availabilitv of staff and other resources Daily6. Regulator) Oversight of Service lProvision Availability ol'monitoring information Always _

1. BER: Kibera; AMA

Consultation Participants

I STAKEHOLDERS GROUP iNAME VILLAGE2 I.KIBERA RESIDENTS3 Village Elders4 Mohamed Saadi ;Lindi 95

Ismail Mohamed Laini Saba 726_ David hlategaro Kisumu Ndogo _ 2_67 Jack Kamau Gatwekera 738 Ramadhani Ali IMakina 1079 :Michael Macharia Mashimoni 93

10) Isaac Njuguna IKianda 6911_ __ Henry Nyando iSllanga 56I 2 Opifnion Leaders I _

I 3 David N9wangi Laini Saba 2714 -- _ Henry Onmbito Kianda 5715 Luka Mbogani Kisumu Ndogo 8916 John MN. Nyangau tKianda 8(17 Idi Mbballa Masisi |Kianda 6118 ;Jemila Ramadhan IMakina 77i9 Dorcas Nyambura Gatwekera 3 1'0 ;Zubeda Saleh |Lindi 12 321:1 liSaidi Abduraman Kisumu Ndogo 11022; Isaac 0 Anasi Gatwekera 7123; 1Zainzam Mohamed Mashimoni 12224 Opinion Leaders 11 -25: Subow Ahmed Kisumu Ndogo 11626! 1Omar Khamis Makina 103271 John Kariuki Mashimoni 7928_ Peter N. Mbugua Gatwekera 105291 Pius Munyao Silanga 106301 Cyrus Irungu Gatwekera 2331_ Ernest 0. Kungu Makina 3732 Alima Aden Silanga 733 Elizabeth Museve Makina 3634 Hassan Jarso Lindi 5335 CBOs Group I36 Moharned Ali Lindi 9437 Musyoka Musembi Silanga 10038 Kyalo Mwelevi Laini Saba 8639 Amrina Abudala Kianda 9401 Amina Juma Kisumu Ndogo 10411 Veronica Wanibui Kianda 11942; Daniel Shamba Soweto 2443 Annah Wanjiku Kianda 1144 CBOs Group II451 Hezron Konzoro Soweto 58461 Japheth Karuru Laini Saba 76471 Grace Kanini Silanga 47481 Elizabeth Kto Soweto 3549 1 Gedi Kanyare Kisumu Ndogo 42

Page 1

Consultation Participants

5I STAKEHOLDERS GROUP ]NAME VILLAGE50 ~~~~~Asha Saidi Lindli 14

| 51 George Ndi-awa Mashimoni 433 5]G r_52 Tenants I!-.53a! ' Moses Ambasa Gatwekera 97

* 5341 Nathan Adura Makina 101s55 IPeter Makaniti Soweto 104

56 ISusan Muthoni Laini Saba 11757 Tenants II I58 Ndunge Nzoka Soweto 102

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ t~~~~~~~~~~~_ _ . .591 Ainea Omamo Lindi 4*601 [George Ogil a Silanga 44I________ 611 Eunice Kalungu Gatwekera 39

6 2 '_ Edward Andeje Gatwekera 3363 Tenants HI3 64 _Abdalla Ahmed Makina 1

_ 65 Elizabeth Asikoye Lindi 3466 Martin Ojowi Kisumu Ndogo 91671 Bernard Nzau Mashimoni 2268j MRichard Mbaruka Silanga 108U 69Makina Market Comr_ittee701 -Francis Maleya Secretary 4071 ' Esther Mueni Treasurer 3872j _Beatrice Miyeko Member 19

__73 SLaini aba Market Operators* 741 ~'-Isaac Atieno Buchichi Laini Saba 68751 'Bernard Mujenyi Laini Saba 2176; Julius Andanda Laini Saba 8377 NGO'S 12378 John Mwashi KWAHO (Chairman) 81I 79! _Jessica Makona KWAHO 7880 Salvatory Harombo iNairobi Family Support 11181 Athanesius M. Nju2hoho Nairobi Family Support 17I 82' Samuel Osaso lUndugu Society 11283 Gladys Maluma !KWAHO 4584 InsUitutons8s dMoses Augote Aswan PAG, Gatwekera 9886 Aluse Maurice Glory Pri School 887 Inziani Edith !Glory Pri School 67S 88 James Mutua AIC Mashimoni 74' 89 Julius MbuLhia PCEA 84_ _490 Kiosk Owners I91 Julius Muchiri Mashimoni 85I 92 Stephen Njoroge Mashimoni 11593 Thomas Inb\eti Mashimoni 11894 Fredrick Maudie Mashimoni 4195 Douelas Ouma Mashimonio96 Aeostino G. Mugambi Makina97 Henrv K. Luganma Laini Saba

Page 2

Consultation Participants

1 STAKEHOLDERS GROUP NAME VILLAGE98 _ Dinah A. Kafunja Laini Saba 3099 Asha V. Benjameni Makina 15

100 Grace Katumu Silanga 48101 Loro Mustafa Lindi 88102 _ David Kinn Maith |Laini Saba , 25103 Kiosk Owners 1104 Isaac Noor Khamis Kisumu Ndogo 70105 Wilson Raywa Makina 120106 Aijah Mukwale Kisumu Ndogo 3107 Hussain Abdi Makina 60108 Halima Mohamed Lindi 50109 Josphat Evole Kisumu Ndogo 82110 Robert Ingose Makina 109111 Hudson Mbelezia Makina 59112 Structure Owners I _ I113 Yakob Khamis Lindi 121114 James Owisho Gatwekera 75115 Hasna Khamns Lindi 52116 Siama Ramadhau n Makina 113117 Ali Yusuf Kianda 6118 Structure Owners II119 Batul Rajab Makina 18120 Antony Mwangi G. Mashimoni 12121 Margaret Wanjiru Makina 90122 Alerika Wanjiru Mashimoni 5123 Stella Ayula Lindi 114124. Beatrice Mwikali Lindi 201251 Hadijah Abdalla Soweto - Kianda 49126 Structure Owner Ill127 'Mary W. Maina jMakina 921281 Hasuna Dafallah Kisumu Ndogo 54129 ! 'Moses Ondego Makina 99130; Kyuthia Kimengere Silanga 87131 MoharneedNassir Kisumu Ndogo 96132 -Harizah Hamed Makina 51

-13333__ _ _ _ ................ _ ________ _ ___________________1 34 ll. NCC-W\SD -__ _ _____ ____-_---------_-------

1 3 5 Eng. Musyoka GM9, WSD 46136 Mr. Joel L. K. Too Deputy GM (Comm. ) 281 37 Ene. Muchinvi Deputy GM (O&M) 29138 Eng. Makuro Ass. Manager (O&M) 16139 Mr. Kavune in Charge Readings) 62140) Mr. Onchoke in Charge Accounts) ._ 3Y4Y: --- Ms. R. Makundi in Charge (BiTneT 64142 'Mr. G. Macharia in Charge (Billing) 65i43 Eng. MNvangi Area Manager (Nhi Da;m) 1 144 Mr. Kiambi) in Charge Comm. Nbi Damn)

146 lll. NCC Councilors Gladys J.A. Ocolah Area Councilor 1 '4

Page 3

I IIIIIIIII

I 1 ~~~~Annex III

I Proceedings of the Team ofExperts Workshop and AMA

I Selection Workshop

IIIIIII

I I i 'I I I I ,I .

I, lSummaryMain findings from AMA Team of Experts workshop

* { * The Workshop recommended the development of AMAs framework which incorporates NCC-WSD as bulk supplier, VWSA as bulk purchasers who onsell to connection holders for end

* retailing. The Experts recommended that this arrangement be developed with the following* } express considerations:

NCC-WSD will sell water in bulk to 9 Village Water Users Associations (VWSA) to be formed* and legally registered expressly for this purpose.* | * Pricing of water to the VWSA will

(i) recover NCC-WSD costs of production and distribution to the bulk meter,(ii).provide for water losses at the same level as is generally the case for Nairobi as a whole,

andNJ |(iii) provide for the costs of internal distribution incurred by the VWSA. and Bulk purchases| ~~~~would be prepaid.

* * Membership to the VWSA will be open to all legally licensed owners of water connections within* I a village who satisfy the licensing rules to be set by the VWSA. A licensed connection holder will

purchase water from the VWSA on the basis of prepaid metering.* Operation and Maintenance Responsibilities:I * the VWSA will be responsible for the operation, maintenance, servicing, repair and

replacement of all components within the village except the feeding bulk metered mains.The VWSA may engage any reasonable and cost-effective means, including subcontracts,to carry out its responsibilities.

* the NCC-WSD, through the Nairobi Dam Area Office, will be responsible for the| 2 operation, maintenance, servicing, repair and replacement of bulk metered mains as well

as of all pipelines cutting across the villages. The Nairobi Dam Area office may engageII -r any reasonable and cost-effective means, including subcontracts, to carry out theseresponsibilities.

* Consultant to clearly define the risks, including the political risk, associated with each AMA.* Suggest a Regulatory Mechanism which includes representatives from all the stakeholders

including end consumers.

3 MNain findings and recommendations of the AMA Decision Makers Workshop

* The selected AMA to outline financial analysis to be reviewed by NCC-WSD and RWS* The AMA to outline clear procedures for removing a 'bad' Kiosk OwnerI * The AMA to state whether or not the proposed Board should include an independent advisor such

as NGO, Consultant/ ,nominee or any other person considered as independent to the project.i* \ASA By-Laws should provide for specific proportion of Women in Committees and

Consultation* AtIMA to address the following losses to NCC; Connection fees, Survey fees and meter rent* The incentives that will drive actors to support the new system should be spelt out* Distribution system-Boundaries, control valves and water demand per village be shovn/done

Important to show how VWSA can gain access to grant/ Subsidy funding

l

l

lI

PROCEEDINGS OF KIBERA AMA; WORKSHOP - NCC, Experts,RWSG-ESA: December 22, 1998

Objectives of the WorkshopThe workshop was convened to:* provide comments on the outline sketches of AMA in the light of the reaction of

stakeholders* identitf at least three possible management arrangements* agree on the direction the consultant will take

Introductory Remarks by Eng. ivlwangi ; Area Manager Nairobi DamEng. LaTence Mwangi, gave a background to the Kibera W'ater Distribution Int-illin!Component (KWDIC) and noted that from 1989 to 1998 the Nairobi Citv Council hasbeen implementing the Third Nairobi Water Supply Project (TNW 'SP) at a cost oft USS94m including: dam, treatment works, distribution mains. capacity building.computerisation. In 1996 Kibera was selected as a pilot area for extension olf aninformal settlement water distribution infilling component.

Background InformationNls. Kariuki gave a summary report on the previous studies that led to the current studynamely: the findings of the Rapid Needs Assessment of water and sanitation that w asconducted with 99 community groups in Kibera and also the Kiosk study whichcovered 47 Kiosks to establish patterns of water trade in all the 9 villages.

Presentation of the Alternative Management Arrangementsi) Objectives of the Study:

Dr. Njonjo stated the study objective as aimed at developing an ANIA that wouldensure timely delivery of adequate water within proximity of consumers at a price that isaffordable and meets costs recovery requirements and technical standards of the utility.(TOR Section C).

ii) Presentation of Sketches of AMAThe consultant team presented a range of 10 theoretical AMLAs in their sketchedoutlines. The consultant also presented a report on Stakeholders Consultations. Fromthe list of Sketches of AMA provided, the Workshop participants were free torecommend any three for the consultant to develop.

General Comments:After presentation of the Sketches of AMA, the Workshop participants provided the

following comments for the Consultant to consider in developing AMAs:

* Distinction should be made between the presence of illegal connections anddifficulties in the identification of the location of meters.

* There is need to specify the methodology to be adopted in involving residents inmeter reading - i.e. are they going to accompany the NCC meter readers and whowill cover this cost.

* WSD-NCC regulatory role will be shared , it should be seen as part of theregulatory tearn (the activities of WSD will be regulated by the overall regulatorybody.) .These regulatory roles will be played by all the stakeholders in Kibera.

* Emphasis should be placed on the utility functions, their problems and suggestionson how to solve them. These include lack of meter reading/estimated bills. slow andlate billing and other management issues.

* The question of what Kibera residents feel about the level of NCC tariff needs to beaddressed. The charges to the end consumer by the kiosk owners is the mainproblem and point of exploitation especially due to the fluctuations in prices .

* There is need to indicate whether the current tariff level can ensure cost recoveryfor NCC if all consumers within the Kibera service area were paying for wvater.

1. BER. Kibera AMA Workshop Proceedings; 22112198

! beAdequate water in peri-urban areas was defined as an average consumption rate of20 Up/d. 'Me Alternative Management Arrangement study proposals are based onthe assumption that the Kibera Water Distribution Infilling Component will ensureat least 20/p/d and that the project will be completed successfully.Rent seeking has been identified as a problem in getting a water connection. TheConsultant should address how this problem could be tackled given theprominence of the rent seeking culture and the fact that we are living in a remnseek-in environment.

| The Workshop participants noted that the current water delivery system in Kibera is at adeficit and these deticits are as a result of NCC inefficiencies. The basic minimumimprovements calls for an autonomous Water &Sewerage Department (the whoi2departnment ) at NCC.

NCC officials told the Workshop that a wider review on the autonomy of urban wat.rsupplies is being addressed by the Urban Working Group (UWG) . It wvas hoped thaL

* the WASD will be able to follow up on this later. The Workshop noted that in the lonrtemr autonomy of the overall WSD will be important to ensure the sustainability of animproved water supply delivery system in Kibera. Emphasis was placed on the need toI recognize that the efficient and effective supply of water to informal settlements is amajor problem even to the best performing utilities.

According to participants, the AMA proposed should identify what functions of WSDcan be transferred to autonomous institutions within Kibera.

AMA Operational Framework:I The following comments were specific on the Sketches presented:

* It will be necessary to distinguish between reference to the wider Kiberacommunity and the water end users in discussing the roles and responsibilities oft various categories of stakeholders. 1 e

a Tlere is need to consider capacity building within WSD Nairobi Dam Area:Office in| ~~~~the NCC -WSD management variation I presented.

a As Concerns Users Management option proposed,

i 1. 'Me consultant need to be cautious on the formation of the Village Water sellersAssociations - because the composition within the villages in terms of kioskowners, residents and structure owners is not amorphous.

2. Associations of this nature in most instances fail to pay for water and nobodycan be held accountable - look at lessons from the Kitale Municipal Council.

* For Private Company leasing NCC-WSD assets,

1 1. There is need to establish boundaries on what is going to be leased as a separateidentity. The functional boundaries should also be very clear.

2. Private lease companies creates problems when the above issues are not clearly1 defined - i.e. in agreeing on water losses and whose responsibility it is to payfor the loss.

* The Kibera Water Distribution Utility - who should constitute the board i.e. whoshould be the members and how are they going to be elected/nominated, should bespelt out.

3 * There is need to distinguish between the board directorship and the regulatory rolein order to enhance community oversight. Overseeing of the project should beshared between NCC and the community . These modalities need to worked out inU advance. It is also necessary to distinguish between operational and oversightfunctions.

I *72 RFR Kih'rn AMA WnrwIchAn Porriorlinac

Conclusions:The workshop concluded with the following remarks:* There is need to Identify the potential for PSP in Kibera. There is however verv

litLlc information on the water market in Kibera

* The ANMA proposed should lake into consideration Lhe level of organization that cangain acccptance within NCC and the political stream (address the political risk)

* The AMA should allow for community voice and portray a clear understandine ofwhat is practical. There is need to show how representative the existing communitvvillage groups! organisations are. The incentives for the community to get involvedin NCC work should bc outlined.

* The transitional arranvernents that need to be put in place should be outlined. Theconsultant will also need to work out the real costs for each of the AMA proposed

* The models that provide for an interface between the community and WSD (NairobiDam Area Oflice) should be spelt out clearly

* The reticulation system in Kibera should be studied and a decision made on whatare possible/practical subdivisions to be made.

Next StepsDuring this Workshop, the Consultant was given definite direction to follow in thedevelopment of AMAs;

1. From the different range of AMAs suggested, the meeting decided that theframework holding most promise was the one which incorporated NCC-WSD asbulk supplier, VWSA as bulk purchasers who onsell to connection holders for endretailing. The consultant team was instructed to develop this arrangement with thefollowing express considerations:

* NCC-WSD will sell water in bulk to 9 Village Water Users Associations(VWSA) to be formed and legally registered expressly for this purpose.

* Pricing of water to the VWSA will(i) recover NCC-WSD costs of production and distribution to the bulk meter,(ii).provide for water losses at the same level as is generally the case forNairobi as a whole, and(iii) provide for the costs of internal distribution incurredby the VWSA. Bulk purchases would be prepaid.

* Membership to the VWSA will be open to all legally licensed owners of waterconnections within a village who satisfy the licensing rules to be set by theVWSA. A licensed connection holder will purchase water from the VWSA onthe basis of prepaid metering.

* Operation and Maintenance Responsibilities:-the VWSA will be responsible for the operation, maintenance,servicing, repair and replacement of all components within the village except thefeeding bulk metered mains. The VWSA may engage any reasonable and cost-effective means, including subcontracts, to carry out its responsibilities.

* the NCC-WSD, through the Nairobi Dam Area Office, will be responsible forthe operation, maintenance, servicing, repair and replacement of bulk meteredmains as well as of all pipelines cutting across the villages. The Nairobi DamArea office may engage any reasonable and cost-effective means, includingsubcontracts, to carry out these responsibilities.

3. BER. Kibera AMA Workshop Proceedings; 22/12/98

1 2. Consultant to establish the social character, including ethnic composition of eachvillage as it would relate to the VWSA.

3 Consultant to clearlv define the risks. includincg the political risk, associated witheach ANIA.

4. Suggest a Regulatory Mechanism which includes representatives from all thestakeholders includin i end consumers.

.llI

I.

|1 ~~~~~~~~~4. BER. Kibera AMA Workshop Proceedings; 22112/98 -

I I I I i I I II I I

Ii~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

IList of Participants

1. Joel L.K. Too - Deputy General Manager Commercial2. Svlvester Mluchinyi- Deputy General Manager O&M3. Michael Mlakuro - Distribution Envineer. O&M4. P.M.Njaagah - Engineer Operations & Maintenance5. A.A. Nyamanda - Snr. Superintendcnt. WSD6. Charles Onchoke - In-chargc Accounts7. Raston Mbunau - S. Ac. Clerka 8. Cyprian Njue - Sociologist PIU9. Mildred Ogendo - Sociolooist PIU10. Lawrence Mslwangi - Area Manager Nairobi DamI11. Simon Thuo - Asst. Director MoWR13. Apollo Njond o - Business & Economic Research Co. Ltd13. Bill Wandera - Business & Economic Research Co. Ltd14. John Ondari - Business & Economic Research Co. Ltd15. Jean Doyen - Regional NManager, RWSG-ESA16. Ato Brovwn - UES Speacialist, RWSG-ESA17. Mukaami Kariuki - Urban Development Specialist RWSG-ESA318. Japheth Nlbuvi - Consultant RWSG-ESA

B

I

I

II

5. BER. Kibera AMA Workshop Proceedings; 22/12/98

I I I I I i I

Proceedings from the Kibera AMA Decision Makers* Workshop, 16/03/99

3' Objectives of the Workshop

The workshop was convened to:* select one preferred management arrangement for further development by theU Consultant* provide useful comments for the consultant to incorporate in the final AMA

3 Introductory Remarks by Eng. Mwangi ; Area Manager Nairobi Dam

En(, Lawrence Mwanei, gave a background to the Kibera Water Distribution InfillingCornponent (KWDIC) and noted that from 1989 to 1998 the Nairobi City Council hasI been implementing the Third Nairobi Water Supply Project (TNWSP) at a cost of USS94m including: dam, treaLment works, distribution mains, capacity building.computerisation. In 1996 Kibera was selected as a pilot area for extension of aninformal settlement water distribution infilling component.

RWSG-ESA agreed to provide technical assistance including studies, verification ofplans, mapping and development GIS and the identification of alternative (communitybased) management systems for water in Kibera. RWSG-ESA proposed technicalassistance to NCC for analysis of "social" elements of distribution infilling.

3 He rioted that the progress to date is as follows:* a planning team consisting of staff from the NCC-WSD, the project engineers

Howard Humphreys, the contractor, sociologist and RWSG-ESA has beenadvising on the progress of the project. M.I * layout plans for the infilling were verified with village elders and representatives ofCBOs. A community newsletters and awareness creation posters, have beenprepared and distributed and a site office for use by the sociologis1zhas beenI established.

Background Information by Mukami Kariuki

* Ms. Kariuki gave a summary of the fmdings of the Rapid Needs Assessment of waterand sanitation that was conducted with 99 community groups in Kibera and also theKiosk study which covered 47 Kiosks to establish patterns of water trade in all the 9villages.

Conclusions from the kiosk study indicate that:0 during periods of shortage in water supply in Kibera, prices increased by up to

500% .* the distribution network has a limited capacity to supply adequate water due to

rapid population growth in Kibera and other informal settlements.* * there are 1,014 metered accounts in Kibera, a large number of these being private

connections with less than 10% being registered Water Kiosks.* water management is poor due to delays in Connection/licencing of water kiosks,I delayed and irregular meter readings and bills are issued late and irregularly.* there is a low rate of payment by kiosks due to lack of confidence in meter reading,

existence of faulty meters and irregular billing.athere is a high volume of unbilled water:- kiosks sell about 40,000m3 of water

monthly but the NCC bills for only 3,400m3 monthly

She conclude that, while the end consumer in Kibera pays for water, kiosk ownersrarely do. Even though land tenure remains a key constraint, means of delivering

i1i 1 RRR Kihprn AMA Wnrlthann nPrr inac Ih/Q0/09

services to the poor must be found. She added that the informal private sector plays akey role in improving services and that community participation in design andmanagement helps build sustainability. An enabling environment should therefore becreated for kiosks and other informal private sector providers.

The next steps within the project would therefore involve the development ofalternative ( community based) management arrangements that would streamlineapplication procedures Lo allow for new kiosks. This may lead to the improvement ofthe physical standards of existing Kiosks. Transitional arrangements would then beworked out to re-connect existing connections to the new network.

Presentation of the Alternative Management Arrangements

i) Objectives of thc Study:

Dr. Njonjo restated the study objective as aimed at developing an AMA that wouldcnsure timely delivery of adequate water within proximity of consumers at a price that isal'fordable and meets costs recovery requirements and technical standards of the utility.(TOR Section C).

He recalled that an earlier Decision makers ( NCC. MOWR, RWSG-ESA and team ofExperts ) workshop held on 22/12/98, had directed the consultants on the next steps totake to complete the report. From the different range of AMAs suggested, theframework holding most promise was identified as the one which incorporated NCC-WSD as bulk supplier, VWSA as bulk purchasers who onsell to connection holders forend retailing. The consultants were instructed to develop thi& arrangement with thefollowing considerations:

* NCC-WSD will sell water in bulk to 9 Village Water Sellers Associations (VWSA)to be forned and legally registered expressly for this purpose.

* Pricing of water to the VWSA will:(i) recover NCC-WSD costs of production and distribution to the bulk meter,(ii)provide for water losses at the same level as is generally the case for Nairobias a whole, and(iii) provide for the costs of internal distribution incurred by the VWSA. Bulkpurchases would be prepaid.

* Membership to the VWSA will be open to all legally licensed owners of waterconnections within a village who satisfy the licensing rules to be set by the VWSA.A licensed connection holder will purchase water from the VWSA on the basis ofprepaid metering.

* Operation and Maintenance Responsibilities:The VWSA will be responsible for the operation, maintenance, servicing, repairand replacement of all components within the village except the feeding bulkmetered mains. The VWSA may engage any reasonable and cost-effectivemeans, including subcontracts, to carry out its responsibilities.

* The NCC-WSD, through the Nairobi Dam Area Office, will be responsible for theoperation, maintenance, servicing, repair and replacement of bulk metered mains aswell as of all pipelines cutting across the villages. The Nairobi Dam Area office mayengage any reasonable and cost-effective means, including subcontracts, to carryout these responsibilities.

* Consultant to establish the 'social character', including ethnic composition of eachvillage as it would relate to the VWSA.

2. BER. Kibera AMA Workshop proceedings; 16/03/99

* Consultant to clearly define the risks, including the political risk, associated withIIeach AMA.

* Sug(gest a Regulatory Mechanism which includes representatives from all thestakeholders includina end consumers.

Alternative NManagement Arrangements for Kibera

AMA Main Features* NCC-WSD to sell water to VWSAs through bulk meters who would on-sell water

to Kiosks through pre-payment meters* * Kiosks to use smart tokens to sell water to end users on cash basis

* Service and managnement contracts to be effected between various players* Regulatory board consisting of representatives of VWSAs, NCC, Consumers,

Councillor. Provincial Administration to enforce contracts* Kiosk Watch committees to deal with local disputes and report non compliance to

regulatory board where necessary

Advantages of AMA* Empower Kibera Community to participate in key utility management issues

affecting theml, * Cut back on operational costs related to meter reading, billing and delivery of bills

and revenue collection and ensure full cost recovery for NCC-WSD.* Encourage water conservation owing to token operated dispensers as a result

improving service reliability.

Core Stakeholders* Consumers also refereed to as the Kiosk Operators (Market the water)* Kiosk Owners who form themselves into VWSAs (Distributors)ThNCC-Water Sewerage Departrnent (Producer)

|Te Pre-payment System

Configuration:-The management control unit (MCU) will be housed at the Nairobi Dam areaI office and be telegraphically linked to each point of sale unit (POSU) in thevillages. Pre-payment meters (PPM) will replace existing meters and be installedat every new connection.I Functionality:-NCC-WSD to prepare and deliver monthly bills to each VWSA on basis of

consumption and the MCU to load POSUs with water units upon pre-paymentby VWSAs.

*' Hydraulic System:-There is need for Hydraulic System Alteration to improve volume of waterinflow to Kibera (NCC). The secondary network reinforcements will be doneI through KWDIC and bulk meters installed through the TNWSP

Required Changes will involve institutional and legal aspects, O&M activities and| Customer care changes

Setting up costs for the system are estimated at US $ 483,000.

U NCC-WSD will incur no new costs but other management and administrative costsestimated as follows; each VWSA will need approximately US $ 850 per month,UKVWSA US $ 570 and the Regulatory Board US $ 15 per month.

U 3 q RFR Kiherm AMA Wnrklzhnn nrrcpcitinoc A/nt/QQ

For Operation and Maintenance, NCC-WSD and VWSA will each need a minimum of20% of prevailing tariff and UKVWSA about US $ 110 per month to maintain theMCU.

The paricipants then watched a Video on Lhe Bambamanzi pre-paid water managementsvsterm

Plenary Discussions on the ANIA Report

During plenary discussions, the following concerns and suggestions were made:* Ownership of the metering system and the network after Lhe bulk meter and how

responsibility for water losses by the bul-k meter and individual meters will beshared need to be addressed .

* The need to develop a financial model that indicates the scenario for NCC alfterintroduction of the system was felt. This model will allow the viability of the systemto be easily be assessed

v Participants were concerned on the safeguards that will be put in place to protect Lheend user and at the same time ensure water availability. There is need to keep waterprices low, application procedures should be simplified so as to allow many watertraders get into the market.

* WSD officials felt that changing of the existing NCC tariff , may be a lengthyprocess and there is therefore need to work with the current tariff structure

* The consultant clarified that : (i) bulk meters will be conventional meters and pre-payment will be on the basis of established level of consumption during the first 3months of project commissioning, (ii) the proposed Regulatory mechanism will bekept at a minimum and should be viewed as complementary (iii) the tariff of KShs10 may be seen as constituting an inbuilt cost element

* There is need to look at incentives offered by the new management system toimprove performance and how its investment costs compare to other systems suchas the one used by NCC-WSD currently .

* The System has been tested for 4 years in South Africa and is in operation in somesmall towns in Uganda and is being newly introduced in Kenya.

* The AMAs developed can work without pre-paid meters but the prepaid system isproposed to reduce human interaction between meter readers and Kiosk Ownershence reduce rent seeking which has been and continues to be a big burden to thecommunity and NCC-WSD.

* There is need to minimise the likely adverse effects and disruptions to the currentowners of metered connections and water business in Kibera during the transitionperiod.

Group Work

The Workshop participants were divided into 3 groups to discuss financial, technicaland institutional aspects as they relate to the AMA.

The Technical team was expected to discuss:* re-connection to the new system and replacement of old meters* whether O&M arrangement is feasible and how losses should be managed in

relation to billing* whether the proposed pre-payment addresses the problems identified in Kibera

The financial group was expected to address:* how pricing and related tariffs should be managed in order to ensure that the

proposed system benefits the consumer and does no harm to him* how the proposed financing arrangements meet the objectives

The institutional issues for discussions were:* whether the management arrangement proposed is appropriate

4. BER. Kibera AMA Workshop proceedings; 16/03/99

I,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

whether consumers are adequately involved and the measures to be put in place toensure that consumers are protected from exploitationhow the regulatory framework should be established and the roles it should play

|Each iroup nwas expected to assess the consultant's proposal to see whether it meets theneeds identified in the Needs assessment report. and whether it addresses the problemsidentified through various consultations. They were also expected to suggest otherissues that the Consultant would need to address when recommending transitionalarrangements.

Group Reports at Plenary

Group I- Technical* Concern was raised on the possibility of refund of costs incurred connecting to oldI system including deposits for meters currently held by the WSD-NCC when people

switch to the new management arrangement and whether VWSA will pay newcharges (i.e deposit) to NCC.I * The security and safety for the new meters was raised given that these areelectronic. For instance the electronic device may be affected by the sun,temperatures, air, water, -etc and may therefore need protection.

* Members of the group sought for clarification on the procedure to be followed in* the event of a consumer in need of an individual connection as opposed to an

NGO/group Kiosk, which he/she is a member.* Members of the group wanted to know how O&M would be handled in the villagesI especially with regard to replacement of meters/pipe leaks repair. Taiy further

sought to see the detailed O&M arrangements and procedures and whe'n- and howthe distribution network rationalisation will take place

* The group recommended that the period between commissioning of new system andthe AMAs should be synchronized. No time gap should be left between the two.Members also expressed concern on the availability of funds for the transition

Group 2 - FinancialThis group made a number of suggestions which include;* The proposal that bulk supply charge to remain at KShs 10 per cubic meter. EvenI without a change in tariff, the lowest in range that one can afford to pay is KShs 2

per 20-litre jerrican* According to this group, Pre-payment System is a better system because it

enhances O&M, no pay no water policy and enhances a self regulatory system* Training and office space necessary for VWSA to be very effective are very

essential* There is need for financial controls. The O&M budget will be very essential* Tariff to end consumers should decrease

Members of this groups had a number of concems that will need to be addressed by theI Consultant. They include:* how funds will be re-allocated to villages* how Kiosk profits will be agreed* how Contracts will be awarded

Other issues raised by this group include the need for explanations on what happens ifcouncil does not supply required amounts of water and what happens to longI pipelines from outside Kibera

C T l N r T)-.. A X- A IXA JL. _ _ ,fl'I

Group 3 - InstitutionalMany issues raised in this group touched on the nature of the Constitution that VWSAswill have. For instance, group members sought to know whether the constitution willmitigate aeainst "Chaiman for Life" . They further proposed that the Constitutionshould define the election rules that give provision for a limited term for the officehearers. say tor instance I term ot 2 years

Other aspects ofl the constitution that the group considered important include the periodot 6 months proposed for office bearers tor the UKVWSA. The period was thought asbeing too short for any meaningful work to be done and that 1 year will be the mostappropriatc time. The constitution for the VWSA and UKVWSA should clearly spellout the frcquency at which committees should meet.

The other issues discussed are as followvs:

* Group members sought to know how institutions should be protected or preventedfrom political hijacking by powerful politicians and other power brokers while at thcsamc time being brought " on board" to avoid sabotage of the svstem

* The group sought to know how the proposed regulatory board will get Experts toadvise Lhem as it was felt that the board cannot effectively function without expertopinions. They furLher felt that regulatory functions should be incorporated as perthe water act but without creatine "regulatory" agency (community water suppliesclause). A regulatory agency will be viewed as a threat to the powers of the Ministerfor water resources. The 20 members for the regulatory agency was seen as too biga number for decisions to be reached and will' therefore need to be trimmed.

* There should be a clearly defined strategy for eliminating "gate keepers"* representatives of KWC should be considered to represent the views of the villages

they represent in the regulatory board.* The role of Kiosk Owners in approving Kiosk membership should be defined* The functions of the UKVWSA should be limited to awarding sub-contracts and

management of the MCU on behalf of VWSAs.

Members of this group sought to know whether the management arrangementsproposed considers Government interventions in cases of emergency such as anoutbreak of Cholera and government orders that all water should be given free forsometime.

It was felt that there should be provision to establish a regular (i.e quarterly) forum forNCCIVWSA/KWC/O&M staff to monitor the progress of the VWSA

The levels of authority and reporting arrangements and powers of each linkages in theproposed arrangements will need to be defined.

According to all the 3 groups;* the Consultant's proposal meets the needs identified by consumers and the needs

assessment* the Consultant's proposal addresses the problems identified through various

consultations

Concl usionsAfter group presentations, the Workshop participants concluded by discussing thefollowing additional issues:* Outline of financial analysis to be reviewed with NCC-WSD and RWSG should be

prepared by the Consultant* KWC must be practical and report regularly- silence is not an indication that all is

well

6. BER. Kibera AMA Workshop proceedings; 16/03/99

* There should be a clear procedure for removing a bad' Kiosk OwnerI There is need to state whether or not the proposed Board should include an

independent advisor such as NGO, Consultant nominee or any other personconsidered as independent to the project.*By-Laws should provide for specilfic proportion of Women in Committees and

| ~~~~Consult[ationI * The financial principles to be observed -Grants. Credit. Own funding for capitlinvestment etc

* Need to address the following losses to NCC- Connection fees, Survey fees andU meter rent as a result of adopting the new management arrangements* Financial Analysis for the pre-paid system versus the Conventional system is verv

crucial* The incentives that will drive actors to support the new system should be spelt out* Alternatives to pre-payment for bulk should be presented i.e Escrow account* Distribution system-Boundaries, control valves and water demand per village be

shown/done* Important to show how VWSA can gain access to eranU Subsidy funding

Next Steps

The following were the next steps agreed for the Consultant to complete the assignment:

* Incorporate the suggestions made by the World Bank team on 15/3/99 and theselection workshop held on 16/3/99 in the draft AMA report

* Prepare an analysis of the imnplications arising from adoption of the AMA asrequired by Stage VIII of the proposalI * Prepare dissemination materials and a dissemination plan per Stage IX of theproposal

* Compile all the different components into one final report* Compile proceedings of the two workshops held in the course of the assignment. <;

l

ll

U 7 RFR 1(ihprn AMA Wnr <hrnnrncaPPdinna 1vnt9

lI I I I I I I I I I I II

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I

I

I

I

III Annex IV

I Kibera account Balances forI October 1996 and July 1998

IIiIIIII

I

I

J I I I I I I I I I I I I ,

II 1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

NCC-WSD Latest account balances

A/c No. Outstandin balance(Ksh)Oct,1996 July,1998I '2800721 1,198.80 8,164.10

2822776 61.869.95 64,938.352823284 14.071.00 16.348.502823969 4,048.80 102,564.302824(0) 7.186.25 161,946.502824019 6,474.80 8,149.802824027 6,232.35 8,067.352824159 71,036.95 72,871.952824191 1,700.(0 7,832.80I 2825589 5 1() .22825643 48.502825678 (l".1,2829436 21,815.25 23,490.252831422 6,856.70 16,875.00

28001600 .1(0. W)28345100 8,029.35 584.65

2823500 728.402823616 38,433.45 84,479.952823810 18,901.00 38,250.502826160 .2828294 10,103.70 36,942.702828618 220.00 24,350.502829673 52,018.353 2829886 94,086.00 96,236.002829924 6,767.60 5,800.6028302602831015 239.80 5,844.202831163 16,212.65 19.393.65

28008020 3,741.75 10,910.6528011240 209.6028245820 53,818.95 62,482.4528263800 354.80 3,079.3031 28341380 12,373.15 13,810.652834227028345960 11,056.60 (7,194.00)28353550 1,097.60 99,584.6528904960 (165.45)__

2800004 209.80 3,098.4528010902809710 3,384.70 (70.40)2809753 6,249.002809788 6,689.1528126402822687 973.602822695 5,173.20 31,342.752822768 (247.45) 189.802822792 3,949.95 20,274.552822814 62,895.75 76.134.75

| 1 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 July,1998

2822822 54,246.60 89.571.602822830 13,649.20 13,629.652822849 64,117.85 68.137.852822857 15,002.50 15.26.52822865 11,086.90 13,)001.902822873 16,974.55 18,649.552822881 4,006.60 2,473.202822903 545.60 3,066.602822911 52,998.45 63.205.4528229202822938 12,870.70 16,704.902822946 6,643.85 13,585.002822954 36,906.75 38,581.752822962 4,595.50 9,344.502822989 29,029.60 36,497.102822997 ( 3 5 .40)2823004 1,763.70 8,858.702823012 10,389.35 19,264.352823020 4,743.00 6,588.002823055 5,141.70 6,816.702823063 12,426.20 14,101.202823071 7,537.20 10,458.202823101 2,069.00 3,904.002823128 2,659.30 4,889.302823136 9,225.90 10,900.902823152 5,874.45 11,841.952823160 532.50 500.002823195 3,990.15 2,285.002823217 191.00 3,050.002823233 14,199.15 23,577.652823268 2,514.75 4,793.252823276 5,082.85 7,341.052823292 4,595.45 6,270.452823306 11,216.05 34,513,513.052823314 4,419.15 6,614.152823322 11,579.80 13,773.202823330 3,550.25 10,997.502823357 190.00 3,855.002823365 4,109.20 6,869.202823438 6,900.85 9,425.8528235192823527 9,093.30 11,351.502823535 39,865.95 45,406.352823578 1,055.35 4,630.352823586 8,203.90 13,933.902823659 8,738.55 10,413.552823675 3,854.20 5,739.202823691 3,588.10 6,593.10

2 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)*____________ I Oct,1996 July,1998

2823705 22754.00 6,080.0028237442823772 22,656.20 24.331.202823780 30,586.90 32,261.902823934 4,385.50 6,643.702823977 5,595.85 7,430.852824116 112,327.30 135,097.1528241402824167 5,488.90 15,833.902824256 6,154.45 12,089.452824272 2,451.30 4,876.302824280 5,869.85 8.063.252824299 210445.40 28.296.8028243962824434 4,864.60 10,553.60

* 0 2824477 15,915.70 18,216.202824590 24,255.35 37,480.352824760 1,452.65 10,397.6528247982824833 80,163.85 169,527.352824981 15,229.45 41,978.852825228 2,972.15 5,230.352825392 3,332.50 5,525.902825570 2,163.90 21,218.302825627 1,687.752825635 516.80 1,230.203 2825686 11,886.50 14,079.902825694 11,268.30 13,461.702825708 38,533.00 96,718.002825716 7,473.90 8,148.902825724 1,819.55 5,606.002825732 44.102825740 3,708.15 6,738.152825759 {-(0.5()2825775 11,701.20 13,376.20

| ~~~~~~~ ~~2825783 4,410.30 7,225.702825791 190.00 1,403.002825805 6,750.95 9,009.15

l ~~~~~~~ ~~2825821 1,128.65 3,394.452825848 831.75 1,333.75

_ ~~~~~~~ ~~2825856 1,692.35 3,334.353 2825872 21,923.05 33,432.852825880 63,568.65 121,482.302825937 495.75 2,170.752825953 1,805.50 7,220.502825996 304.80 14,379.402826003 6,637.90 8,312.902826011 5,827.10 9,140.10

3 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstandin balance(Ksh)Oct,1996 July,1998

2827166 6.054.55 13,402.052827301 152,256.65 160,195.002827387 14.504.60 18.854.602827395 4.604.85 11,394.852827409 379.80 67,950.002827417 7,447.35 9,692.352827433 3,465.80 2,189.802827441 58,048.00 59,723.002828065 25,387.00 10,110.502828162 7,624.40 10,209.402828251 4,716.60 74,409.502828324 5,836.40 7.541.002828367 9,957.05 11,632.052828574 _2829134 0.002829142 6,071.50 5,918.802829231 649.80 10,629.802829258 417.55 3,008.052829341 0.002829703 3,898.00 5,573.002829738 3,870.70 6,073.702829746 951.00 219.002829762 _

2829789 (87.00)2829800 3,649.50 5,324.502829843 18,444.30 20,637.7028298742829878 12,836.95 15,665.352829908 31,995.65 52,690.652829916 9,322.00 11,472.002829932 7,985.75 10,179.152829940 4,320.60 7,855.5028299542830000 380.00 (1.(7()2830167 (10.349.50) 8,264.502830175 3,666.50 7,126.502830183 1,849.10 3,524.1028302212830248 10,700.40 12,375.402830280 13,935.35 16.85.352830299 439.00 (550.00)2830310 190.00 275.002830337 10,301.15 13,141.152830353 190.00 1,192.002830361 10,671.40 17,685.002830418 23,652.90 25,802.902830426 89,246.85 91,440.252830738 1

4 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstandin balance(Ksh)Oct,1996 July,1998

2830752 'I 2.516.85 5,601.852830760 73.345.80 76,742.40283(8(09 (2 '0.00)2830825 14.503.05 16,653.052830841 4,636.0X) 520.002830868 21,366.00 25,910.00283()892 480.00 2,050.002830949 2.697.50 4,372.502830957 1,036.85 4,121.85283097 3 1.1 19.65 49.652831058 13.328.30 25,056.302831060(

* 283112(0 1.946.55 630.0)2831139 439.00 20,085.002831147 61.378.05 90,094.00

* 02831198 675.00 3,926.002831228 29,197.25 30,872.252831295 1,325.75 2,650.752831368 70,880.05 146,348.052831370 _

2831384 40,500.85 55,812.252831392 596.30 899.802831414 2,957.90 5,532.902831430 1,706.70 1,776.702831473 1,154.00 914.502831503 24,911.90 19,496.902831511 14,196.75 16,771.752831538 4,748.85 7,243.852831597 343.15 1,518.152831856 53,653.70 84,239.202831880 380.00 950.002832208 3,979.05 6,554.052832216 6,466.95 10,200.352832232 5,525.15 8,100.502832410 189.50 1,010.002832720 3.827.70 6,912.702833271 128,100.25 185,594.102833301 238.002833387 10,073.85 12,267.2528334762833484 7,623.902833506 12,067.75 14,012.752833520 11,041.75

| " ~~~~~~~~~2833581 _ 772,046.15 3,721.152833667-2833689 1,030.10 13,930.10

l | 2833697 445.30 3,068.102833719 129,897.90 138,280.60

5 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 July,1998

2833751 32.908.25 165,777.752833921 25,352.90 28,396.202833932 _-

2833980 380.00 2,487.002834()22 190.00 2,095.002834049 30,819.55 49,934.552834375 8,717.252861399 1. I0.3.0() 434.452862891 17,464.15 19,139.15

28000200 I(84 7.1 0)28007720 9,756.10 18,353.6028007990 326.00 5,208.3028009260 419.60 13,071.7028009340 419.60 26,985.3528010350 (i 13.60) 8,058.5028010780 419.60 11,811.9028010860 402.35 2,746.652801125028011400 119.60 13,963.5028012990 1,982.7028013290 2,053.6028013370 2,053.6028014180 2,053.6028014260 2,053.6028014420 413,640.1528018170 2,269.00 2,218.5028030382 3,853.6028099150 3,557.0028099230 4,202.752822644028227090 5,835.35 10,768.7528229890 29,029.60 36,497.1028232090 7,049.25 8,914.2528236750 3,854.20 (218.50()28236910 3,588.10 6,593.1028237050 2,754.00 6,080.0028240350 469.70 1,294.0028242480 20,054.00 33,919.502824328028243530 2,832.30 6,957.302824.4420 1,048.252825088028251470 2,211.65 20,149.1528255380 4,381.70 9,517.6028255460 1,603.55 3,679.9528255540 585.55 188.0528260890 24,867.70 27,918.8028261430 336.00 910.00

6 BER: Kibera AMA

'I . . .'NCC-WSD Latest account balances

IAlc No. Outstandin balance(Ksh)

Oct,1996 July,1998I 28262830 4.186.00 8,577.502'8263210 3,259.20 4,166.7028263560 12.664.50 9.878.0028264070

28270180 Vt, 17.S 5_28270420 30,480.50 50,534.5028270770 3,862.70 10,122.0028271820 1,130.70 87,868.2028271900 458.80 72,492.902 8272120 93,324.20 108.351.7028277000 167.3028279990

* 28292580 417.5528293630 1,626.6028298350 167.2528308810 4,342.3028312280 29,197.252831236028331310 12,493.50

28331660 29,437.45

28334250 3,249.70 13,086.302833622028337780 6,022.90 71,707.90

| ! 28338750 4,834.95 18,397.5028339720 7,177.80 337,117.5028340650 1,772.45 2,754.4528340810 3,115.45 40,684.9528341030 3,109.80 1,454.8028341700 893.75 2,914.4528343320 27,101.20 108,652.6028343670 30,656.75 47,061.7528343830 1,231.80 2,394.3028348470 (101.70) 16,668.8028348710 379.20 7,053.202834885028348980 2,124.90 12,136.0528350290 3,504.15 5,435.9028350610 5,651.60 62,954.1028352820 7,362.25 15,139.7528355170 228,827.70 211,910.6028355250 1,661.50 327.2028355680 1,381.00 5,409.3028355920 6,463.30 15,942.2028356140 209.85 5,080.1528356220 1,709.20 5,805.9028356490 1,709.20 6,024.7028356570 77,329.55

7 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstandin balance(Ksh)Oct,1996 July,1998

28357380 1.513.00 15,023.7528357460 858.() 26.660.8028357540 1.850.()0 6.024.7028357620 2.137.80 21,532.80283577220 858.0028357890 79,601.35 260,063.8528358270 769.15 15,083.1528358510 701.70 3,818.052835940() 1,425.10 6.149.8528628910 17.464.15 19,139.1528725870 83,819.95 88,620.55

283073361 6.112.50 183,768.502822733 17,786.60 7,761.502823624 13,491.35 18,063.352824132 (2.592.75) 75.652824221 45,224.95 48,949.9528245572828243 7,452.25 1,154.452828987 9,208.95 10,883.952832542 5,920.60 8,185.602833204 151,865.05 156,005.652833670 18,587.00 28,022.252833735 254.80 1,369.20

28260970 494.75 2,514.2528262670 152,215.30 261,245.8028345610 3,841.75 172,931.9528354010 3,928.40 11,116.0028358190 145.30 13,227.85

2834882802280 3,507.652803224 379.05 13,424.052809796 130.00 1,670.0628227642823098 15,567.95 17,818.952823179 675.00 3,940.002823187 3,516.00 6,767.002823225 19,689.25 29,651.802823241 2,931.40 4,606.402823349 10,202.55 13,113.152823373 1,981.00 12,013.502823381 14,893.15 16,568.152823403 13,477.25 16,062.252823411 8,591.65 10,266.652823446 8,673.80 10,348.802823454 1,581.80 2,334.802823462 439.00 11,252.002823470 1,528.5528234871

8 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 July,1998

2823489 538.55 2,978.552823543 2.915.55 4,600.552823551 7.440.75 9,265.752823594 5.766.8() 9,651.802823632 6,090.95 7,915.952823640 2.675.00 4,090.002823667 5,394.80 8,551.802823683 31.599.40 46,454.402823713 7.294.55 10.259.552823721 43.1 16.80 44,791.802823748 23,212.05 50,558.052823756 44,828.35 196,939.852823764 994.30 584.302823799 3,088.45 5.163.452823802 190.00 950.002823829 2,085.45 5,090.002823837 11,118.40 20,550.902823861 14,947.20 13,776.502823888 142,182.10 149,852.102823918 1,365.30 2,427.302823926 2,235.55 3,910.552823950 3,462.502823985 1,756.50 3,290.002823993 4,452.35 12,957.352824035 469.70 1,294.702824043 921.55 1,976.552824051 605.25 1,665.002824078 6,429.40 3,154.402824086 4,092.002824094 11,293.65 12,968.652824108 1,885.60 4,415.602824124 10,232.65 19,267.652824175 181.10 1,374.602824183 11,620.25 16,847.752824205 10,700.45 14,605.452824213 377.60 369.602824248 20,054.00 33,919.502824264 3,186.05 8,391.052824302 3,089.00 6,314.002824337 3,400.15 5,085.152824345 3,920.25 19,035.252824353 2,832.30 6,957.302824361 3,145.70 5,140.702824388 15,782.15 18,969.152824418 4,478.15 9,153.952824426 6,159.30 203,798.552824450 4,832.55 8,297.552824485 377.60 2,372.60

9 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 July,1998

2824493 1,472.45 2,119.452824515 439.75 3.024.752824523 13,560.40 25.715.402824531 11,985.50 12.833.502824558 2.558.20 5,183.202824566 1,287.25 3,782.252824604 1.431.80 3.106.802824612 1,517.00 3.404.502824620 643.75 3.403.752824639 2.171.65 7.426.652824647 379.00 2.054.002824655 11.242.00 16.137.002824663 1,477.()02824671 4,648.20 11,143.202824698 609.75 5,174.752824701 6,563.50 8,238.802824728 5,188.20 10,694.202824736 25,530.85 51,327.852824752 4,056.10 5,895.002824779 2,145.10 8,277.502824787 8,849.00 10,524.002824809 190.00 2,555.002824817 3,587.45 8,955.452824825 839.30 2,015.202824841 3,854.80 23,609.802824868 11,714.65 13,389.652824876 605.30 7,969.202824892 806.50 2,631.502824906 4,578.65 11,153.652824914 920.00 9,675.002824922 12,621.40 14,448.402824930 87,158.90 267,764.402824949 10,644.60 13,441.602824957 6,571.45 45,174.252824973 497.75 1,659.252825023 1,130.00 3,165.002825082 9,206.50 7,040.0028251042825163 74.002825198 15,555.75 17,914.752825201 8,531.30 10,206.302825236 3,634.75 5,389.752825317 4,628.10 6,303.102825325 541.952825333 39,802.00 46,323.502825368 11,774.65 22,105.552825376 9,394.70 67,086.602825384 27,684.60 91,424.00

10 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 JuIy,1998

2825406 1.785.6() 4,050. 602825449 6.639.15 8.314.152825465 10,524.1() 12,717.50

l 2825481 75.502825511 7,827.95 9,502.952825554 585.55 108.052825562 10.686.50 12.425.352825597 8.135.50 4.510.(X)2825600 186.152825619 1,142.40 2,5(07.4()2825767 2,456.55 5,811.552825864 4.384.50 23.809.852825899 6,592.85 8,267.852825961 29,868.65 32,713.652825988 14,490.60 17,278.602826038 3,516.55 5,791.55282627028269002827158 217.502827263 257.102827298 19,770.00 39,955.002827321 0.002827328 0.002827344 25,758.10 51,373.102827360 5,189.80 30,004.802827379 4,466.50 7,551.502827468 20,319.40 21,994.402827476 77,240.40 97,509.402827484 5,763.75 7,438.752827492 73,522.20 75,143.202827506 1,827.55 3,832.552827514 7,481.50 22,239.502827522 588.00 3,863.002827530 189.00 2,195.002827549 1,816.00 3,491.002827557 7,191.75 8,866.752827565 3,297.85 1,735.152827573 2,973.65 27,408.652827581 5,220.20 9,085.202827603 2,578.95 4,773.952827611 314.70 2,574.702827646 500.50 1,985.502827654 13,864.85 15,729.852827662 352.05 1,445.052827670 4,695.55 6,370.552827689 789.15 2,729.152827697 388.00 510.002827700 167.30

11 BER: Kibera AMA

NCC-WSD Latest account balances

Alc No. Outstanding balance(Ksh)Oct,1996 JuIy,1998

2827719 8,858.30 10,821.302827727 0.(X) 0.052827735 7,704.85 9,679.852827743 9,285.15 11,380.152827751 9,849.50 12,542.502827794 1,888.50 4,973.502827808 381.00 3,466.002827816 41,849.35 44,042.7521827824 6,443.70 8,637.102827832 10,740.40 13,069.402827840 1,100.00 16,700.002827859 6(Th1. (0 ) 5,033.002827867 1.664.5() 3,859.502827875 439.50 380.002827883 4,611.50 7.304.502827891 134,625.00 219,370.402827905 7,726.10 10,419.102827948 3,700.50 5,515.502827956 190.00 700.002827964 786.85 679.352827972 6,262.70 8,819.702827980 8,428.75 10,683.752828014 3,308.50 5,553.502828022 189.65 9,681.502828030 0.002828049 1,014.10 6,098.102828066 0.002828073 272.00 985.002828081 2,765.50 4,570.502828103 2,380.60 4,705.602828111 6,458.30 11,303.302828138 5,118.90 7,811.902828146 8,624.05 11,244.052828154 0.002828170 1,853.50 4,218.502828189 5,085.40 7,778.402828197 6,769.40 9,044.402828200 5,296.20 7,161.202828219 4,436.00 16,781.002828227 4,139.50 7,390.502828235 4,442.90 57,000.902828286 498.00 1,983.002828308 2,720.50 4,815.502828316 27,695.45 29,370.452828325 2828332 3,143.00 6,394.002828340 8,752.35 10,427.352828359 39,140.35 74,742.35

12 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)*____________ Oct,1996 July,1998

2828383 9.127.20 11,320.602828391 5.033.10 7.288.102828405 19().( 1.795.(X)

28218413 4.140.40 5,815.402828421 6,188.35 8,073.352828456 51.05) 175.00

282846828284782828480 12.737.00 14.412.(X)

2828499 320.35 760.102828510 9,545.80 11,220.802828529 I ,04.55 229.552828537 3,355.95 36,340.9528285452828553 30,722.10 32,397.110I 2828561 11,472.95 14,377.952828588 3,913.50 7,164.502828596 4,998.75 4,647.502828626 18,541.90 22,318.302828634 2,473.00 4,148.002828642 1,702.10 5,790.10-

2828650 905.10 2,360.1028286692828677 439.00 3,532.00

2828685 9,641.80 12,972.802828693 3,690.60 6,145.602828707 10,316.45 13,009.452828715 4,110.95 7,665.952828723 2,919.85 15,884.852828731 1,892.50 6,205.002828758 597.00 2,154.00

2828766 17,258.00 19,093.00

2828774 379.85 2,710.002828782 4,509.55 9,150.352828790 1,975.70 4,500.70

2828804 11,315.35 12,990.352828812 5,353.15 7,028.152828820 11,075.65 14,390.652828847 3,240.00 2,723.002828855 38,999.50 152,297.002828863 15,222.70 17,752.10

28288712828898 17,268.65 19,386.152828901 26,808.60 31,003.602828928 3,636.00 3,590.002828936 8,648.95 11,341.95

2828944 _

28289521 (8,98S.55.1 (6,148.55)

13 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 July,1998

2828960 14,645.50 2'1.595. 5028289692828995 46,809.55 48,484.552829002 42,780.60 44,455.602829029 10,366.05 12,041.052829037 5,537.65 8,472.652829053 1,720.80 3,725.752829061 5,031.10 6,706.502829193 2,753.40 548.402829223 11,304.85 13,859.852829290 5,671.50 7,346.502829304 24,051.50 35,470.002829312 6,930.75 8,605.752829320 2,314.30 7,209.802829339 2,848.95 4,523.952829347 2,549.05 4,278.052829371 796.60 2,631.602829428 7,554.35 9,229.352829444 2,160.50 1,149.952829452 7,275.90 8,950.902829460 16,770.50 17,100.002829479 13,408.10 17,705.102829487 33,265.35 129,047.652829495 6,938.80 8,613.802829509 17,174.20 19,432.402829517 5,040.30 7,235.302829533 2,923.00 4,598.00 2829541 7,035.25 8,710.25282956628295782829592 124,695.00 274,520.952829606 219.652829622 8,381.70 10,639.902829630 5,397.20 7,072.2028296312829649 10,692.45 13,335.852829657 542.10 190.002829665 1,610.85 24,519.852829754 189.60 704.602829770 7,921.05 13,716.052829797 16,898.00 18,573.002829819 616.00 1,811.002829827 189.95 326.302829835 167.45 9,726.952829851 479.60 2,389.6028298842829967 768.00 15,713.002829991 7,746.25 10,986.25

14 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 July,1998

.2830019 8.240.20 9,915.202830030

2830035 1.720.00 I15J fX))

2830043 3.986.65 11,961.652830051 8.830.40 10,980.402830094 439.50 2,290.50

2830116 3,007.30 41,336.302830159 118.00 225.002*830205 1,193,568.90 1,304,056.20

2830213 961.002830256 8,766.60 6,761.602830329 3,897.30 10,572.302830345 95,279.05 97,472.452830388 1,442.35

2830434 5.718.00 7,868.502830450 5.774.30 7,449.302830469 (1, 4)9.7 J 6,385.30

2830477 1,017.50 2,012.502830496

2830507 379.50 614.502830515 1,512.65 429.65

2830523 31,771.85 41,471.852830524

2830531 1,100.00 9,150.00

2830566 1,386.40 3,851.402830582 5,720.60 8,560.602830590 6,100.50 9,251.50

2830612 7,375.65 11,459.95

2830620 9,728.35 12,813.352830639 11,453.50 14,704.502830647 11,272.90 15,462.302830655 380.15 3,325.152830663 190.00 2,575.002830664

2830671 2,852.50 6,412.50

2830698 2,559.75 19,830.752830701 10,311.30 11,986.302830744 1,349.65 1,865.152830817 22,813.15 25,818.152830833 2,726.25 5,067.252830876 4,204.90 9,632.402830906 849.90 8,714.902830914 6,389.05 14,804.052830922 4,506.65 7,746.652830930 3,285.75 5,577.752830981 1,177.10 3,147.102831007 439.00 3,524.00

2831022 1

15 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 July,1998

28310312831070283 1082 11,121.85 16,484-352831090 12,454.90 14,129.902831155 15,754.80 28,079.802831260 15,670.60 17,497.602831279 3,792.50 22,060.002831 287 7,449.50 5,100.50283 1333 2,915.65 6,498.65283 1449 7,574.85 9,559.852831457 9,295.15 12,878.152831481 7,667.05 9,990.052831546 2,872.65 2,764.352831554 3,621.60 5,476.60283 1562 19,175.45 47,790.452831570283 1589 2,873.95 9,987.4528316002831619 12,278.85 7,914.852831635 102.752831643 10,214.60 13,797.602831651 189.05 760.052831678 22,112.60 56,208.102831686 29,478.60 119,166.102831694 5,529.50 9,112.502831708 1,101.50 2,632.002831716 11,892.15 15,475.152831724 13,400.25 17,565.252831732 998.45 2,223.452831740 19,762.90 42,597.902831759 (14,310.85)2831767 14,643.50 16,930.502831775 6,811.25 10,394.252831783 634.85 3,708.852831791 5,769.952831805 18,308.40 34,173.402831813 14,660.75 19,318.252831821 5,679.50 569.502831848 6,780.00 15,405.002831864 (I 29.6()2831899 67.302831902 11,475.55 26,045.552831910 12,939.55 28,224.552831929 6,515.00 14,490.002831937 604.65 7,174.652831945 16,099.40 19,682.402831953 4,663.85 8,246.852831961 5,761.80 7,896.80

16 BER: Kibera AMA

NCC-WSD Latest account balances

AIc No. Outstanding balance(Ksh)Oct,1996 July,1998

2831996 1.580.50 10,315.502832003 10.821.80 22,446.802832011 2,788.55 4,563.552832038 1.702.50 3,357.502832046 220.00 3,700.002832054 11,202.35 11,674.852832062 2,903.20 16,778.202832070 16.544.45 21,477.852832089 9,804.10 13,387.102832097 36.819.80 99,554.802832100 2,508.85 210.852832119 4.451.60 342.002832127 7.147.60 10,730.602832135 273.95 1,518.952832143 6,045.25 8,640.252832151 6.970.00 3,355.002832178 190.00 1,740.002832186 64.90 2,430.002832194 4,721.50 804.502832224 1,708.05 4,283.052832240 4,234.30 8,969.302832259 460.00 48,545.002832275 7,356.00 10,939.002832283 10,010.30 13,575.302832291 2,319.152832305 901.65 319.652832313 3,553.90

2832321 6,728.05 9,303.052832348 5,681.40 12,321.402832356 3,679.00 6,414.052832364 5,612.40 12,887.402832372 26,073.95 28,990.952832380 22,184.60 66,069.602832402 32,352.55 35,935.552832429 4,066.45 14,941.452832437 10,478.55 14,061.552832445 8,821.45 12,404.452832453 977.00 2,295.003 2832461 930.00 2,605.0028324992832518 21,566.35 24,141.352832526 460.05 205.052832534 1,823.50 580.0028325443 2832577 17,868.55 27,743.552832585 440.10 285,353.302832615 10)7.25) 1,494.75

2832623 3,824.00 21,824.00

17 BER: Kibera AMA

NCC-WSD Latest account balances

Alc No. Outstandin baiance(Ksh)Oct,1996 July,1998

2832631 409.95 1,684.952832658 907.50 1,390.002832666 6,610.95 12,625.952832674 10,585.05 13,195.052832682 12,056.85 14,055.852832690 3,170.50 4,845.502832704 9,134.60 12,642.4028327102832712 7,334.80 11,002.602832747 7,245.55 9,380.552832755 5,061.75 7,196.752832763 0.102832771 5,218.50 17,493.502832798 3,673.05 6,248.052832801 183.95 10,379.952832828 22,331.35 24,941.352832836 1,964.00 9,749.002832852 (1 34.00) 2,690.002832860 9,073.80 12,656.802832887 11,250.25 15,825.3528328932832895 3,359.05 6,094.0528329052832909 13,852.65 18,778.0528329192832933 4,624.05 18,099.052832941 9,684.50 14,457.902832968 2,000.65 4,575.652832976 7,670.90 12,444.302832984 1,995.20 4,570.202833018 5,113.50 7,688.502833034 14,185.60 19,111.002833042 10,883.702833050 28,889.85 30,518.352833069 13,206.15 43,321.152833077 22,874.60 25,567.6028330852833107 5,859.60 9,625.002833123 7,493.80 11,259.202833158 4,820.45 1,809.452833174 8,208.15 9,253.152833182 3,669.00 8,240.502833190 44,634.35 299,660.202833212 64,983.65 69,757.052833239 14,017.80 15,692.802833263 66,010.50 114,966.002833409X 3,635.00 9,448.502833441 6,174.00 6,377.50

18 BER: Kibera AMA

F NCC-WSD Latest account balances

. A/c No. Outstandin balance(Ksh)Oct,1996 July,1998

2833448 7,623.902833530 23,424.25 44,949.252833603 48,604.40 85,380.552833786 24,732.05 26,437.052833808 4,552.30 17,187.302833859 61,041.10 88,940.5028345502834987 3,363.90 19,951.402835096 40,475.00 136,549.6028351912929711

28001280 754.60 82,878.8528001440 1,497.80 3,761.0028009420 144.80 6,967.4528011160 209.60 10,447.8028012130 209.80 11,955.6028012640 209.80 5,343.7028013100 2,053.60

_ _28013610 2,359.9528013960 2,149.9528030700 119.00 708.50

* 28033210 7,015.90 12,540.9028087490 403.65 237,738.6528099310 4,202.7528213620 145.00 907.5028226600 14,563.25 (17. 038.25)28238530 49,608.30 67,065.302824313028247360 25,530.85 51,327.8528247440 3,359.35 5,944.3528249810 13,529.75 41,978.8528252600 18,351.35 43,278.8528254140 43,634.85 35,103.4028254300 363.5528259290 38,172.90 45,965.0028259450 190.00 11,955.0028259530 1,805.50 7,220.5028260020 __ __28260110 5,827.10 9,140.1028260540 28,719.55 33,417.5528262240 1,024.40 4,608.90

l 28262400 2,073.95 3,909.8528263050 32,520.60 79,774.5028263720 1,971.90 14,602.101 28264960 54,029.90 135,358.7028272040 16,880.4028272550 (5.292.60) 647.4028273520 3,335.55 5,833.75

19 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 July,1998

28278910 134,625.40 219,370.40282850572829001028293040 24,051.50 35,470.0028305581 28,353.652831111228313250 34,757.05 38,340.052831466528316191 12,278.85 7,914.8528318720 2,478.90 3,260.002832274028326070 7,520.30 9,655.3028326150 (107.25) 1,494.7528328520 (1 34.90) 2,690.002832992028330930 189.55 9,259.5528331150 261.55 5,330.0028331740 8,208.15 9,253.1528332470 4,799.75 (304.80)28332980 (285.40)28333600 1,626.00 12,391.8028333790 44,019.55 46,074.3528333950 40,385.05 45,500.4528334330 4,438.40 880.002833452028335650 21,682.70 84,815.7028335730 22,659.90 25,910.9028336380 18,255.10 43,733.3528336460 1,798.30 357.3028337430 (6,51 2, 6l ] 6.} 6 028338160 379.85 12,189.8528338240 13,284.35 16,633.8528338670 8,026.20 18,931.2028338910 10,105.15 15.803.6528340730 1,358.75 2,816.2528341460 4,130.35 8,666.00)2834154028341890 2,217.15 6,052.1528342190 2,921.00 87,886.0()28342350 2,304.30 230.8028342431 140,972.00 35,471.4028342510 45,145.6() 109,553.1028342860 641.80 494.3028343160 165.05 1,770.5528343400 1,883.05 142.75.5528344050 3,911.60 6.669.1028344057128344210 8,727.80 23,235.30

NCC-WSD Latest account balances

Alc No. Outstandin balance(Ksh)I_____________ Oct,1996 July,1998

28344480 29.074.70 33,949.7028344560 98.140.00 97,645.0028344640 2.745.1() 2,085.1028344800 6,582.70 11,324.5028344990 9,894.90 26,412.4028345020 56,681.55 82,524.0528345270 . 261,165.8028345530 190.00 84.50

1 28345880 91,450.8028346340 46,296.55 59,497.55

28346420 5,386.70 3,515.00

1 28346500 62.449.25 142,971.2528346690 37,756.75 62,739.3528346770 6.264.95 24,335.20

l 28346850 533.50 1,141.2028346930 3,645.75 8,132.9528347150 3,375.60 4,623.10

1 28347310 2,275.90 7,830.4028347660 53,292.10 206,231.4028348120 2,969.00 7,673.3028348390 2,902.7028349010 8,148.85 6,813.5028349520 2,019.15 3,909.85

28349950 658.35 25,105.0528350020 5,829.50 13,186.4028350370 4,112.00 (33.0:0)28350450 93,725.50 258,945.0028350530 1,410.00 3,061.9028350960 44,855.10 136,549.6028351180 6,353.55 14,546.0528351260 2,111.00 21,930.1228352150 7,115.00 9,072.50

I 28352580 9,936.65 50,621.2028353200 16,916.05 8,381.8528353390 6,274.35 33,397.00)28353470 2,945.5528353980 1,591.55 41,951.4528354600 32,213.45 16,492.6028354870 999.45 24,090.7028354950 8,142.85 28,125.2028355090 26,837.70 3,743.9028355840 (10.6 6) " 8,629.1528356300 3,791.80 3,459.1028356650 1,226.00 42,812.2028356730 709.20 26,103.3528356810 3,660.70 20,476.25

3 28357030 1,709.20 3,405.1028358860 210.10 4,023.10

21 BER: Kibera AMA

NCC-WSD Latest account balances

A/c No. Outstanding balance(Ksh)Oct,1996 JuIy,1998

28359080 1,537.65 4,023.1028359160 1,537.65 4,337.152848759() 2,682.00 434.4528613990 ( 1 ,I.0 X5,

281012720 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

283237560283552070

11,792,655.00 56,083,973.63

22 BER: Kibera AMA

I[ II!Ili

1,

l

I

II

I Annex V

Inventory of Loose Assets he-ld byI NCC-WSD Nairobi Dam Division

II

IIIIII

I I I I I I I I I I l

NAIROBI DAM DIVISION IIINVENTORY OF AVAILABLE3 VEHICLES, OFFICE EQUIPMENT AND OTHER FACILITIES

VEHICLES

REG. NO MAKE/TYPE CONDITION FLEET NO1. KAB 014Q Datsun 12X) pick-up Poor (needs WS-812

overhaul not_____ _________________________ m oving)_ 2 KWE 155 Isuzu Lorry Average - moving WS - 7513 KZF 501 Nissan Pick-up Poor- moving Ws - 8144 KWE 233 Nissan Sahara pick-up Poor - moving WS - 6875 KUL 37() Isuzu Canter Poor - moving WS - 7(x)6 KUV 985 Honda Hero (Motor Bike) Very poor WS - 644

* (mechanical

breakdown) - notmoving

7 KUV 987 Honda (Mlotor Bike) Very poor - WS - 8743 _____________rn m oving8 KAC 487E Suzuki 1.3.jx Average - moving WS- 8769 KAA 670S Toyota 2.4 Diesel Very poor in the WS - 853

___________________________ g arag eI 10 KUL 037 Mercedes Lorry Very poor - in the WS - 911.- _ ._ I garage 9_ _

lOFFICE EQUIPMENT AND OTHER FACILITIES

1 1. RECEPTION OFFICEITEM QUANTITY CONDITION

(i) Tables 1 Very Good3 (ii) Desks 1 Good(iii) Wastepaper Basket 2 Good(v) Trays 2 Good

2. METER SECTION OFFICEITEM QUANTITY CONDITION

(i) Desks 2 All Average(ii) Chairs 3 All Average(iii) Benches 1 Good(iv) Cabinet 1 Good(v) Wastepaper Basket 1 Good(vi) Tool Boxes 2 Good(vii) Metalic Box 1 Good

l

ll3 1. BER: Kibera AMA; Nairobi Dam Division Inventory

OFFICE EQUIPMENT AND OTHER FACILITIES

3. MIETER READERS OFFICEITENI QUANTITY CONDITION

i . Tables I Goodii Desks I Avera2eiii Chairs 8 5 Poor

& 3 Goodiv Benches I Goodv Trays I Goodvi Waste Paper Basket 1 Goodvii Meter Book Shelves 2 Goodviii Cabinet (Metallic) I Good

4. STORE CLERKS OFFICEITEMv QUANTITY CONDITIONTables I Good

ii Chairs 3 Goodiii Cabinets 1 Very Good

5. STOREITEM QUANTITY CONDITION

1 1 inch tees 85 New2 3/4 inch tees 64 New3 1/2 inch tees 65 New4 1 inch Elbows 20 New5 3/4 Elbows 78 New6 2 inch plugs 6 New7 3 inch plugs 3 New8 1/2 inch Bends 24 New9 6 inch sockets 4 New10 4 inch sockets 4 New11 3 inch sockets 2 New12 11/2 inch sockets 10 New13 3/4 inch sockets 13 New14 1/2 inch sockets 8 New15 6 inch nipples 3 New16 4 inch nipples 9 New17 3 inch nipples 11 New18 2 inch nipples 10 New19 4 inch unions 1 New20 11/2 inch unions 8 New21 6 inch mech. joints 24 New22 6 inch step downs 20 New

2. BER: Kibera AMA; Nairobi Dam Division Inventory

115. STORE cont..

*___________ ITEM QUANTITY CONDITION23 21/2 inch mechanical 8 New

joints _24 4 inch mechanical 5 New

joints25 3 inch mechanical 5 New

joints26 4 inch stepdown 5 New27 3 inch clamps 6 New28 2 inch by 3/4 inch 13 New

reducine Bushes* 29 3/4 inch by 1/2 inch 57 New

Reducing Bushes30 1 inch by 1/2 inch 47 New____________________ reducing Bushes31 1 inch by 1/2 inch 20 New___________________ reducing sockets32 2 inch by 1/2 inch 6

reducing sockets33 4 inch by 2 inch 2 New___________________ reducing sockets34 6 inch by 4 inch 1__________________ reducing sockets3 35 6 inch mechanical 15 New

joints36 6 inch stepdowns 35 New37 21/2 inch Mechanical 8 New

joints38 4 inch mechanical Nil

joints39 3 inch mechanical 4 New

joints40 4 inch stepdowns Nil41 3 inch clamps 6 New42 12 inch stepdowns 2 New43 Shovels 10 New

44 - Chain Spanners 6 Old45 9 inch Flanges 2 Old____________________ A daptors46 Wheel Burrows 5 Old47 Portable pumps 1 Old48 Sewer unblocking 1 Old

machine49 Galvanized Iron 10 meters New

_ pipes (1/2 inch)

3 3. BER: Kibera AMA; Nairobi Dam Division Inventory

5. STORE Cont..

5( G.1 Pipes (3/4 inch) 10 meters New51 t11/2 inch G.1 Pipes 27 meters New52 3 inch G.1 Pipes 12 meters New5 2 2 inch GA1 pipes 6 meters New54. 5 inch G.I pipes 4 meters New5:5 4 inch P.V.C pipes 27 meters New

(plastic)56. 6 inch P.V.C pipes 42 Pieces New57 8 inch P.V.C pipes 12 meters New58 10 inch P.V.C pipes 6 meters New5' 12 inch P.V.C pipes 5 meters New60 LXSC and LXH - 70 New

15 E Water Meters I

OFFICE EQUIPMENT AND OTHER FACILITIES

6. STORE (HARDWARE)ITENl | QUANTITY | CONDITIONTool Boxes 1 13 1 Old

EQUIPMENTS INSIDE THE TOOL BOXES1. Pipe Wrenches Nos 8,10,12,14,18 & 242. Fix Spanners3. Ring Spanners4 Adjustable spanners5 Pliers6. Files (Bastard)7 Pangas8. Hack saws9. Tape Measures10. Screw Drivers11. Hammers12 Stock and Die 1/2 "-11/4"

13 Stock & Die 1/2" - 214 Chiesels

There are 13 toolboxes assigned to individuals who were not available during the timeof taking this inventory. The above list contains tools contained by each toolbox. Eachbox contains at least one item in each of the 14 categories of tools.

4. BER: Kibera AMA; Nairobi Dam Division Inventory

7 STORE (STATIONERY)

I ITEM QUANTITY

Typing papers IU ..j Photocopying papers 4.I . Shorthand Books 4iV Hard Cover Book (4Q) 3v Hard cover (2Q) 3 .vi Folders & Fasteners 6vu Carbon Papers 9viii Small Envelopes 10lx Large Envelopes 7x Computer Binders 2 Boxes (25 in each)xi Correcting Fluid (Stencil) 8 Bottlesxii Delivery Books 2xiii Spring Files 50xiv Rubbers 1 pktxv Staplers 2lxvi Paper punch 1

8 COMMERCIAL SECTION OFFICES

3 ITEM QUANTITY CONDITIONI Desks 7 All Goodii Chairs 14 3 poor, 11 poor

|i jiii Executive Chairs 1 Very Goodiv Executive Desk 1 Very Goodv Trays 6 Goodvi Cabinets (Metallic) 1 Goodvii Fans 2 GoodViii Strong Room 1 Good

* OFFICE EQUIPMENT AND OTHER FACILITIES

CHIEF ASSISTANTS ENGINEERS OFFICE

ITEM QUANTITY CONDITION

1 Executive Tables I Very Good2 Executive Chairs 1 Very Good3. Chairs 2 Good1 4 Cabinet of Drawers 1 Good5. Trays 6 Good6 Fan 1 Good7 Waste Papers Basket 1 Good8 Telephone (head) 1 Good

1 5. BER: Kibera AMA; Nairobi Dam Division Inventory

AREA MANAGERS OFFICE AND HIS SECRETARY'S OFFICE

ITEM QUANTITY CONDITION MAKE/TYPElI. Executive I Very Good

Tables2 Executive I Very Good

Chairs3. Tables 3 Good4. Chairs 6 Good5 Shelve of I Good

Drawers6. Waste Paper 3 Good

Baskets7. Telephone 3 1 Working & 2

Heads Out of Order8. lanual 1 Poor Olivetti TA%'

Tvpwriter Model 98 Sno9 Electronic 1 Good i) IBM 6784 S.

Typewritter NO. llFBNC3ii) IBM model1674 - 001 S.No 581057281

10 Photocopying 1 Good Model Mita DCMachine 1260

11 Computer 1 Good Hewlett PackardPrinter

12 Computer 1 Good Motel: PS 250 -Guard 50part no. ps

250-50S13 Computer 1 Good Acerview 34TL

Screen (ACER) Model 7134T14 Computer 1 Good Clicker patent

Keyboard (Soft) approvedceremony No.6719 DE

REGISTRYrlEM QUANTITY CONDITION

1. Tables 2 Poor2. Desks 1 Good3. Chairs 7 5 Poor & 2 Good4. Cabinets (Metalic) 1 Good5. Waste Paper Baskets 1 Good6. Trays 2 Good7. Cupboards 1 Poor8 Stools 1 Average10 Motorola Radios Radius GM 300 2 Avergae

6. BER: Kibera AMA; Nairobi Dam Division Inventory

II H~~~~~~~~~~~~~~~~~~~I

I 12. KITCHEN

vITEM QUANTITY CONDITION* I ) Kettles (Electric) I Poor

2) Thermos Flasks I AverageA) Tea Cups 6 All Average4) Sugar Dishes (Wooden) 2 All Good15) Tea Spoons 2 All Good

| 13. SECTION HEAD O&M (SEWERS) OFFICEITEM QUANTITY CONDITION

I) Desks 1 Average2) Chairs 2 All Average3 ) Benches I Good4) Travs 2 GoodI 5) Waste Paper Baskets 1 Good6) Tool Boxes I Average

OFFICE EQUIPMENT AND OTHER FACILITIESI 14 ENGINEERING SECTION (OFFICE)

ITEM QUANTITY CONDITION1) Desks 3_All Poor2) Chairs 5 3 Good & 2 poor3) Drawing Tables I Aver1 ge4) Drawing Chair I Good5) Drawing Cabinet I Average6) Waste Paper Baskets 3 _Good

17) Tool Boxes 2 Good

15 SECTION HEAD O&M WATER OFFICE

*ITM QUANTITY CONDITION

1) Executive Tables 1 Good2) Executiv Chairs 1 Good3) Chairs 3 Good4) Trays 2 Good5) Waste Paper Baskets 1 Good

16 O&M WATER OFFICE FOR FOREMAN AND INSPECTORS (OUTSIDEWOODEN OFFICE)

ITEM QUANTITY CONDITION1) Desks 2 Average2) Chairs 3 Average3) Benches 1 Good|4) Trays 1 Good15) Waste Paper Basket 1 Poor

7. BER: Kibera AMA; Nairobi Damn Division Inventory

REQUIREMENTS OF NAIROBI DAM DIVISION II OFFICEEQUIPMENT AND OTHER FACILITIES

ITEM DESCRIPTION UNIT OF ISSUE QUANTITYI- § Fluorescent tube (4 feet) 1502. _ Fluorescent tube (5 feet) No Nil3. Fluorescent Choke No 504. Bulbs Fix I () Watts No 1005. Gumboots (Ladies)

No 5 No 5No. 6 No 40No 7 No 45No 8 No 5

6. Gumboots (Men)No 6 No 5No. 7 No 1(No 8 No 60No 9 No 9(No 10 No 30No 11 No 10

7- Table Dusters (Yellow) Doz. 108. Force Pump Small

complete with wooden handle No 209. Force pump large complete with

wooden No 8010. Sweeping broom complete with

handle No 8011. Map bucket

(Galvanized steel) No 4012. Dust pan/brush plastic No 3013. Mop head complete with

wooden handle No 3014. Plastic Turk head brush No 3015. Ban Soap carillon of 25 bars 7016. Padlock large

(2' union or equivalent) No. 17017. Industrial Plastic gloves Packets 8018. Toilet papers packets of 40 Rolks 8019. Washing Detergent (Harpic 400g)

Bottle or equivalent Bottle 10020. Washing Detergent Omo 50g

sachets or equivalent sachets 50021. Washing detergent Vim lOOg

bottle or equivalent Bottle 10022. Fans No 1023. Trays No 10024. Switchboard No 1 with at

least 4lines

25. Telephone Heads No 1526. Dust Coats No 150

8. BER: Kibera AMA; Nairobi Dam Division Inventory

l!U IT~~~~~~FEM DESCRIPTION UNIT OF ISSUE QTY

28. Starters (Fluorescent tubes) No 5029. Tables No 530. Fluorescent tubes (2 feet) No 6031. Dresscs No 9032. Desks No 1033- Chairs No 3034. Cabinets No 1535. Electr-ic KettlIe No 336 Thermros Flasks No 4377. Cups Doz 238 Suear Dish No 4

139.1 Glasses (drinking Water) Doz. I40 Jug No 2

I

lII

II

II

|| 9. BER: Kibera AMA; Nairobi Dam Division Inventory

l l l l | lI

III I

fI

I I

III Annex VI

I AMA Costs of Adoption andI -Installation

IiIIIIIII

I I I I I

Annex VI:Financial Costs of Adopting and Installing the AMA

1 Expenditures will be incurred in the adoption and installation of the proposedA*MA arising from setting-up activities which include, among others

* background studies,* VWSA and UKVWSA formation,* drawing up of various contracts and legal documents* recruitment and training-* acquisition of materials, equipment management software* installation, establishment and commissioning

PracLicallv all of these activities will be undertaken irrespective of the variationselcctcd. although marginal differences in intensities and costs may be expected insome of the setting up activities, such as traininc.

1.1. Background Preparatory and Supportive StudiesEssential information that goes into project formulation, design andimplementation needs to be collected and analyzed before the proposals made canI start being translated into an operable AMA. We list here only the most obviousones, such as,

a) Study on the size, character and composition of the water market ineach village.

b) Mapping of all active pipelines in each village, identifying their sizes,routes, ownership and the connections/kiosks they serve

c) Creation of a Register of all fixed water assets and their ownership for* each village. This should also update the Inventory of Loose Assets

held by Nairobi Dam Area Office which is enclosed as Annex V.d) Compilation, for each village, of a Register of all water outlets, legal

* as well as unauthorized, indicating the names of their owners andrelationship to WSD

e) Compilation, for each village, of a Register of Structure Owners andholders of TOLs

f) Establishing WSD full cost of producing and delivering water to bulkmeters

g) Socio-political study on the character and social composition of eachvillage focusing on the village leadership

h) Assessment of best practice costsi) Fine tuning the proposals contained in this report in the light of the.1 results from the first study.

The costs of the essential remaining studies may be of the following order:-

Table 1.1: Cost Estimates for background studies (US$)

Study CostMarket Study and Analysis 20,000Mapping of pipelines 20,OOCCreation of Village Water Fixed Assets Registers 7,OOCCompilation of Village Water Outlets Registers 7,000

* Compilation Registers of Structure Owners & holders of TOLs 7,000Socio-political studies 9,900Assessment of best practice costs 20,OOCFine Tuning the proposals 4,OOC20% Contingency 18,98

l Total 113,88

1. BER; Kibera AMAs, Costs of Adoption and Installation

1.2. Formation process of VWSASirnilarly, some large inputs will be required in the formation of VWSAs andthe UKVWSA, such as

* consultation workshops with kiosk owners* promotion* preparation of draft constitution and bv-laws* organization of elections of interim officials* legal registration of VWSA* opening of Bank Account

The likely costs under this heading may approximate US $ 20,000.

1 .3. Acquisition of system hardware and softwareSome 19 Bulk Meters of different sizes will be acquired and installed. Theircosts is indicated in Table 1.2.

Table 1.2: Cost Estimates for Bulk Mletersin US $

Size Qty Unit cost Total costDN 250 3 1. 70C 5,10CDN 200 2 1,40C 2,80DN 100 5 75C 3,75CDN 80 9 7C 6,30CSubtotal 17,77CInstallation costs 30% 5,385Total = 23,335

Acquisition of the Pre-paid meter management system package (hard and software) is expected to cost as follows:-

Table 1.3: Cost Estimates for Pre-Paid Meter Management VSystem (equipment and installation)

in US$

Equipment No. required Unit Cost TotalManagement Control Unit(MCU) 1 4,300 4,300Point of Sale unit (POSU) 2 1,100 2,200Metering Unit 1,500 175 262,500Smart Tokens 1,500 6.5 9,750Maintenance Card 18 13.5 243Security Spanners 100 38 3,800Installation 1,000Training 6 2,160 12,960Total 296,753

Therefore, acquisition of the main hard and software is expected to cost aboutUS$ 320,000.

1 .4 Drawing up contractsConsiderable legal work will be necessary in drawing up the required contracts,such as:-

* a bulk purchase agreement/contract between WSD and the VWSA,* an O&M service contract between WSD and the VWSA in respect to

all no bulk-metered WSD owned mains,* a memorandum of understanding between WSD and the VWSA in

respect to standards of service and broad conditions for kioskowners as water retailers,

2. BER; Kibera AMAs, Costs of Adoption and Installation

* draft an agreement/contract between the VWSA and the kiosk ownerin respect to purchase and retail of water

Lawyers, engineers and management experts will be involved in drawing upthese contracts. Their fees cannot also be estimated as they vary widely. AFtigure of US $10,0(X0 is good enough for planning purposes.

3 l .5. Establishment and commissioningThe UKVWSA will need some ofFice space from which to operate. Officeequipment, such as desks, chairs, drawers, forms, etc., will need to beacquired at about US$ 1000 .VWSAs shall use the same offices for theircommittee meetings

1. 6. Training and Recruitment:Trainine of interim Management Committee (MC) in running communityorganizaions with particular reference to water organizations will be required.The depth of Lhe training will depend on the variation of management adopted.

* Trained manpower is readily available and easily recruited in Nairobi butinduction courses will be required. However, staff will need to be trained in theworkings and operations of the Pre-paid Water Management System at aboutUS $ 12,000

1.7. On-going Infilling of the Distribution Network and additional costsa It is assumed that the on-going KWDIC shall bring all WSD pipelines to within50 metres of each kiosk in all the villages. Otherwise, it may be wise to allocatesome additional funds to bring the pipelines close to the kiosks. Funds shouldcertainly be made available for rationalizing the kiosks and for hooking-up to thenew network. The cost of hooking up the 1014 existing Kiosk Owners to the newpipe network is about US $ 162,000.

1.8. Management Advisory ServicesExperience has shown that for new institutions and new water managementpractices to take root in a community, it is essential to provide for managementadvisory services for 2-5 years. Some of these services include

* management/enforcement of financial and accounting systems including* budget preparation and control

interpretation and enforcement of by-laws including0 handling committee meetings and elections at the Annual General

meeting* identification and handling a crisis of the water supplyI * maintenance of the water supply facilities

Management experts, Engineers and Accountants will be involved. This couldcost up to $60,000 over three years.

1.9 Summary Costs of AdoptionFrom the foregoing specifications, and as shown in table A4, the total costs foradopting the proposed AMA could well amount to US$ 700,000, or just aboutUS $1.5 per resident assuming 500,000 people.

3. BER; Kibera AMAs, Costs of Adoption and Installation

I I I J I I J I I I I I I I i I

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~l

Annex VUI3 Cost of Providing Water under the Proposed AMA

I. Basic AssumptionsThe following assumptions have been made in developing the scenarios:-

*. Provision ot water would be through the following chain:-* WSD produces and distributes to Kibera Bulk Meters,* each VWSA purchases water from WSD at an agreed bulk rate and

reticulates the same to Kiosk Owners' meters at a set rate* kiosk Owner purchases required amount of water from the VWSA at

the set rate for retailinc* end consumer purchases his/her requirements from the Kiosk

Vendor at market, presumably competitive rates.A UKVWSA would provide essential centralized services to the VWSAs.

2 O&M responsibilities over the Kibera network will be distributed as| ~~~~~~~follows:-I follows- WSD will operate and maintain all bulk-metered mains irrespective

of their sizes, including the bulk meters* VWSA will operate and maintain all non-bulk metered pipelines

* reticulating water between the bulk meter and the kiosk meter* The connection holder will operate and maintain the service line after

the kiosk meter.

3. WSD, VWSAs and UKVWSA will be able to recover assessed bestpractices costs of providing service. The Kiosk Vendor, as a privateinvestor shall, in addition, realize some profit to remain in the 4rade. Wesuggest a 30% mark-up on the VWSA's sales price to Kiosk-wner asprofit.

I 4. The Pilot Project will bear all the investment costs of introducing the newmanagement structures and their soft and hardware requirements estimatedat US$ 1,202,000 including KWDIC costs (see Annex VI). However, each

| organ will bear the costs of depreciation and replacement of installedfacilities.

II. Costs of Providing Water ServicesThe Kiosk Water Vendor, the VWSAs, the UKVWSA and WSD are expectedto meet the cost items discussed below.

| 1. Kiosk Owners CostsThe Kiosk owner/vendor is expected to meet the following costs

a) Capital Investments and depreciation CostsSome additional capital costs, such as,* relocationg his/her offtake point to the nearest KWDIC main and

establishing an upgraded, say 1" 0 GI Service pipeline, average 50* metres long. This may cost about Kshs. 12,000

* acquisition of pre-paid meter at about Kshs. 13,000The required total capital investment by a Kiosk Owner would,I therefore, amount to about Kshs. 25,000. This additional capital costwill be bome by the Pilot Project and is included in the estimated totalUS$1,202,000 capital costs for the project. However, the depreciationof these installations, about Kshs. 1,500 per annum, about KShs. 125p.m., shall be met by the kiosk owner.

11

b) Operations and Maintenance Costs* payment for water supplied by VWSA* operational labour as reflected in the Kiosk Study. Assume that half

of the Kshs. 85 daily wage is assigned to operating the kiosk. i.e.Kshs. 1,275 p.m.

* security at Ksh. 6,000 per year as estimated in the Kiosk Study. i.e.Kshs. 500 p.m.

* service and maintenance charges for metering unit, at about Kshs.650 a year, i.e. Kshs. 54 p.m.

* maintenance of about 30 metres long serviceline, at about Kshs. 120per year, i.e. Kshs. 10 p.m.

The total monthly operational and maintenance costs may amount to Kshs.1,839 excluding the cost of water and will be charged to water sales.

The average monthly total capital and O&M cost (excluding the cost ofwater) could be about Kshs. 1,964, equivalent to US$ 26.60. These costsare relatively fixed and will not vary with volumes of water transacted.

The estimated fixed monthly expenses to be incurred by kiosks in thesettlement has been estimated to be about Ksh 2.0 million as indicated inTable I

Tablc 1: Estimated Total Fixed Monthly Expenditures for all KiosksKshs

Villages Labour, etc. Costs Maintenance Depreciation TotalGatwekera 154,425 5,56 10,87 170.86Makina 541,375 19,52C 38,12: 599,02CKianda 255,60C 9,21( 18,00( 282,816Kisumu Dogo 76,321 2,752 5,371 84,452Lindi 230,75 8,32C 16,25 255,32CMashimoni 72,775 2,624 5,12 80,524Soweto 15,975 57( 1,12 ' 17,67(Laini Saba 388,725 14,01 27,37 430,11Silanga 63,90C 2,30 4,50 70.70TOTAL 1,799,85C 64,89 126,75( 1,991,49

2. VWSAs costsThe VWSA will be expected to bear the following costs:-a) Capital investments and depreciation Costs

The VWSA will bear depreciation costs of the materials and equipmentprocured. These materials relate to the cost of acquiring the POSU andestablishing an office, about Kshs. 175,000. Assuming 15 yearseconomic life for this equipment, the annual depreciation cost isestimated at Kshs. 11,700, about Kshs. 1,000 p.m.

b) Operations. Maintenance and Management Costs* purchase of water, in bulk, from WSD* monthly management and administrative costs, including salaries for

five employees and allowances for 5 Management Conmmitteemembers could be expected to be about Kshs 64,500.

* maintenance costs for POSU and the reticulation network. Theannual maintenance requirements for the Ksh 38.1 million KWDIC --installed pipe network is estimated at Ksh 31,777 or about Kshs4,000 per VWSA per month

! II3 Therefore, the total capital and OM costs for the 9 VWSAs will be about

KShs. 673.580 Monthly as shown in Table 2.

3 Table 2: Monthly VWSAs Fixed Costs

Villages O&M Depreciation 15% O&M Total(VWSAs) Costs cost Contingency

Gatwekera 64,968 1,000 9174 75771 3Makina 6 5,248 1,000 9,787 76,035Kianda 65,578 1,OOC 9,837 76,4 14Kisumu Dogo 63,366 1,00C 9,50 73,871Lindi 64,499 1,00C 9,675 75,174Mashimoni 62,483 1, 00C 9,372 72,85

Soweto 6 5, 8 1 1,00 9,873 76,691Laini Saba 63,372 1,00( 9,506 73,87Silanga 62,565 1,00C 9,38 72.950

TOTAL 577,89 7 9,00C 86,68 673,582

3.UKVWSA costsI The proposed UKVWSA is an organ set up purely for servicing VWSAsthrough the operation of the MCU.

a) capital costs. The UKVWSA will meet the costs of depreciation of theI MCU estimated at Kshs. 32,000 annually or about Kshs. 2,700p.m.

b) operational costs estimated at about Kshs. 41,500 p.m.c) maintenance costs for the MCU estimated at Kshs. 15,900 annually,I i.e. Kshs. 1,325 p.m.Thus, the total monthly capital and O&M costs for the UKVWSA may3 be about Kshs. 57,400, equivalent to US$ 800 p.m.

Table 3: Monthly UKVWSAs Fixed Costs(Contributions from VWSAs)

Contributions O&M Depreciation 15% O&M Totalby VWSAs Costs Cost Contingency

Gatwekera 3,66 232 55 4,451Makina 1 2,863 81 2 1,929 1 5,604Kianda 6, 073 38 911 7,367Kisumu Dogo 1,8 1 4 1 1 _ __2 72 2_20 0CLindi 5,48 3 3 4 6 8 2 26,6 _5 1Mashimoni 1 ,729 1_0 __2_5_9 209_ _73 Soweto 38 C 2 4 5_ 7 4_6_1Laini Saba 9,236 ____31_1_3 ___11_2_04

Silanga 1,51 _ 9 2_2_ 1_,8423 TOTAL _ _42,765 2_70_ 6_4_1_ 5 1_8_8_ _

4. WSD CostsWSD will incur O&M, management, and capital costs in providing water toI the 9 Kibera VWSAs.Unfortunately, WSD financial records have not been maintained in a form3 that allows easy and accurate assessments of the different cost items.'

I

Notwithstanding these shortcomings, the following assessments may bemade.

Operations. Maintenance and Management Costs:The O&M cost of watcr production in 1997/98 was reported to be KE37.114.(X)O for 113.150.(00om 3 . suggesting about Kshs. 6.56/m3. Twoaspects may be noted. On one hand, some observers have reported thatprovision of maintenance resources has been inadequate: on the other handWSD services are relatively inefficient when compared with performanceindicators elsewhere.

Table 4: Comparative Water Operational Performance Indicators

Avcrai2c for Rezioni Staff per 1000 1,000m3 sold per staff/year csWater Connections ___

Devce loped countries 2.64 25_

Asia 4.

Latin Amcrica 4.0 1 0 _

Sub-Saha.an Africa 14.0 1S _

Nairobi 10.9C 3

Source: Indicators: World Bank: WVater and Wasrtewwaler Utilities.

It may be more appropriate to compare WSD's performance with that of LatinAmerica rather than that of developed countries. Such a comparison, wouldindicate that WSD is 40% overstalffed, labour productivity is ony 30% that ofLatin American countries and the ptoportion of UFW is 27% higher. Theserelative inefficiencies in WSD may account for 60% of the estimated Kshs. 6.56O&M cost of producing one m 3 of water. If so, the efficient unit O&M cost isabout Kshs. 2.80.

Operations Costs With the introduction of the proposed AMA, WSD will have avery light load at Kibera, estimated to cost less than Kshs. 30,000 monthly.

Capital Costs:Attempts to obtain information on which to estimate WSD capital costs have notbeen successful. WSD needs to endeavour to compile a realistic estimate of itscapital costs for incorporation in its price of water to Kibera VWSAs.

Therefore, excluding the cost of water, the total monthly O&M and capital costsfor the proposed AMA is of the following magnitude

Table 5: Summary O&M and Capital Costs

Organ Monthly CostKiosks 1,991,4969 VWSAs 673,582UKVWSA 51,880WSD 30,000Total 2,746,958*

* excluding WSD capital costs

This Kshs. 2,746,958 monthly cost will be added to the WSD bulk rate and isexpected to be a charge on the price of water to the end consumer.

III. ConclusionsA number of observations may be made from the costs presented above. First,WSD does not cost its water services exhaustively and seems unaware of the

| full costs it incurs in providing water services in the city. This needs to berectified urgently. Nonetheless, it is apparent that its current charge to kioskowners. KShs 10/00 per m3. is far above its best practices O&M costsestimated at Kshs 2/80 pere m3. Assuming that capital costs stand at this samelev-el then the full best practices cost ot water production (including capitalCosts) may he about Kshs. 5/S( per m3. WSD needs to provide its unit cost ofproduction.

Second. it is apparent that the AMN-A proposed is organizationally andoperationallv expensive. VWSA's averac Cixed cosLs call for an examinationI o'f the viability of the k\IA through concrete findings on the character and Sizeol' Lhc wvater market. Option Cl among Lhe broad ANLAs initially suhnlittcd.and which are included in Appendix B may need to he revisited to search l'ora more viable and cheapr option. Such a revisit may indicato that Lhe tiu.iVU'SAs monthly costs could be reduced from Kshs 725.(XX) LO KShs1 84.000.

I| ' For a detailed commentary on WSD's maintenance of its financial records and aflairs. see vB.Third Nairobi Water Project. Final Supervision and Completion Mission Report, especiallyAnnex 2

IIIIIIII1II

I i I I I I I II i I

II I

I

II

IIII Annex' VIII

I,

I,II.

IIII

I

I

I i I i i I I I I I

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'

Annex VIII:I Financial Scenarios on Kibera water market

A. Basic AssumptionsThe following assumptions have been made in developing the scenarios:-

(a) Population: 500,000 suggested by RWSG-ESA. The distribution of this population afterMatrix (1993) is indicated in Table 1:

Table 1: Population distribution3 Village

PopulationGatwekera 11Kianda 15Kisumu Dogo ICLaini Saba

Lindi 1'Makina -'

Mash irnoniSilanga 'ISoweto3TOTAL 1

(b) Consumption ranges:BER = 51cd3 RWSG-ESA= 10-15-211cd X

(c)Provision of water would be through the following chain:-* WSD produces and distributes to Kibera Bulk Meters,I * Each VWSA purchases water from WSD at an agreed bulk rate and reticulates the

same to Kiosk Owners' meters at a set rate* Kiosk Owner purchases required amount of water from the VWSA at the set rateI for retailing* End consumer purchases his/her requirements from the Kiosk Vendor at market,

presumably competitive rates.

U (d) Water losses25% of water fed to the Bulk meter will be lost before reaching the Kiosk Owner'smeter15% of water sold to the Kiosk Owner will be spilt while filling cans.

1 | 1. Kibera AMA; Financial Scenarios

B. Estimated Water Requirements through the delivery chainWith the above assumptions, daily water requirements for the settlement at 5, 10, 15, 21 litresper person per day (Ipd) are estimated to be as in Table 2.

Table 2Water Requirements

m3/month

(a) (b) (c) (d) (e)

Population lpd Amount Required Kiosks Requirements VWSA's Requirements

by End-Consumer I.1 5X(c) 1.25X(d)[(a)X(c)]/1000*30

500.OO( ; 75,00C 86.25( 107.813

500.0( 1 150,00C 172,50C 2 15.625

500,(OC 1 225,0OC 258,75C 323.438

500.()(C 2 1 315,00C 362,25C 452.8 13

These water requirements would be shared by the nine vilHages along Lhe proportionsmentioned in assumption (a) above.

'C. Pricing PrinciplesWSD, VWSAs and UKVWSA will recover assessed best practices costs of providing service.The kiosk vendor, as a private investor, shall in addition, realize somle profit to remain in thetrade. We suggest a 30% mark-up on the VWSA's sales price to kiosk owners as profit.Annex VII has indicated that the total costs (O&M+Depreciation) for the proposed. AMAwould be about Kshs. 2,746,958 monthly in addition to water purchases from WSD. Thiscost will be recovered by the various organs.

D. Financial ScenariosThe following Table 3 depicts financial scenarios and theoretical water prices for the AMA.

2. Kibera AMA; Financial Scenarios

- - m mmi in i i i i i i in

Table 3:Financial Scenarios

lpd Monthly Consumet Monthly Kiosk Monthly VWSA Bulk Price Amount Charged Fixecd Costs Totl;i Cost to Cost to Kiosk IIriceRequirements m3 Requirements m3 Requirements m3 Kshs/m3 Monthly KShs KShs Kiosk per can per canKShs. KShs/m3 KShs KShs5 75,00 86,25 107,813 10 2,746,95 3.825,088 44.35 1N( I.3

__ _ __ _ __ _ __ _ _ __ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ l ,0 7 8 ,1 3 (i __ _ _ __ _ I_I_I_I_ IScenario 1 150,00( 172,50 215,625 1 2,746.95 4,903,208 2X.42 ().6, (3.X__ _ _ _

.__ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ 2,156,25 _ _ _ _ _ _ _ _ _ _ _ _ _ _I I 1 225,00 258,75 323,438 1 2,746,95 5,981,338 23,121 0.5 0.7__ _ ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3,234,38C _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _21 315,00 362,25 452,813 1 2,746,95 7.275,088 20.0 00.4 0.6__ _ ___ _ _ _ _ _ _ _ _ _ _ _ _ _ 4,528,13C _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _

5 75,00C 86,250 107,813 5.6 2,746,95, 3,350,7 11 38.85 0.9] 1.1 '603,753Scenario 1 150,00C 172,500 215,625 5.6 2,746,95 3,954,458 22.92 0.5 (0.7_ _______________ ________________ _______________ ________ 1,207,50( ________1_2 7_50II 15 225,00C 258,750 323,43 5. 2,746,95 4,558,211 17.62 0.4 0.5_ _ _ _ _ _____ __ __I __ 1,811,253 1 I21 315,00C 362,251 452,8131 5. 2,746,95 5,282,711 14.581 0.3 0.4_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___ 2 ,53 5,7 5 3 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

5 75,00 86,25C 107,813 2.8 2,746,95f 3,048,834 35.35 (0.8 1.0tI_______ I ______________ I ____________ I _______ I _ _ 1 30 1,87 q ___ I __ I _ _ I I I__01 8 7Scenario 1C 150,00( 172,50( 215,625 2.8 2,746,95t 3,350,708 19.42 (0.4 0.5S_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 0 3 ,7 5 _ _ _ _ _ _ _ _ _ _60 3_750mIt 15 225,00( 258,75( 323,438 2.8 2,746,95£ 3,652,584 14.12 (3.33 0.4I_______ I _______________ -_________ _ -__ I__I__I_ 1 905,62 q 1__ 1__ 1__ ._ _ -__I95_I21 3 15,00 362,250 452,8131 2.81 1 2,746.951 4,0 14,834 11.()8 (02 0.33KIberaA 1 Fa 267 87cn os I I I I

3. Kibera AMA; Financial Scenarios

E. ConclusionsAll the scenarios and simulations indicate that the current price charged the end consumer,

about Sh 2/per 20-litre jerrican during normal supplies, represents an unexplainably high

mark-up. For instance, Scenario I Simulation One indicates that the average minimum retail

price could be Sh 44/m3 (equivalent to Sh. 1.36/jerrican) including 30% Kiosk Owner's

profit. Yet. the current average retail price is Sh 85/m3 (equivalent to Sh 2/jerrican). The

Kiosks Study concluded that, the water trade at Kibera was not noticeably profitable. Such a

hefty markup cannot be explained by greed for super profits.Rather, there appears to be some aspects of the water market that need further exploration. A

sound understanding of this mark-up needs to precede adoption of the AMA. The character of

the Kibera water market, especially elasticity of demand as well as the concrete size of the

market need to be well understood. Perhaps, the effective water demand, and therefore, size

of the water market at Kibera may be small, and may partly explain the present 8 times mark-

up. It is inconceivable that 375,000 twenty-litre jerricans of water are sold daily as the 15 lpd

assumption would imply. Can the mnarket take this amount of water? The Kiosk Study

indicated that the total daily sale could not have exceeded 85,000 cans.Cost-based pricing may result in substantial differences in prices to end-consumers from one

VWSA to another although the WSD bulk rate may be uniform for all the VWSAs. While this

may provide the basis for healthy competition, it could also lead to political instability in some

of the VWSAs.Scenario I and retention of the current Kshs 10/00 per m3 price as the bulk rate is untenable.

WSD will need to consider lowering this rate to Kibera VWSAs and there would seem to be

little point in proceeding with the project unless WSD commits itself to a reduction to best

practices level of about Kshs 5/80 per m3. Insistence that the current price should be

maintained threaten the viability of the VWSAs and will increase prices to the end-consumer to

unaffordable levels defeating the objectives of the whole initiative.

4. Kibera AMA; Financial Scenarios

I

I

I

I - + -1 - tf- I -t - (--X--;----r-- X-r--

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - - 11 - - I( - - -f - f - - -i _ I I _ - - ~ r - - - - - - ' C -_ , _f --_