Table 5. Tracking Study for the Water and Sanitation Sector (WSS) Cost Variation
1.
Issue Identified WSS must adopt a pricing framework for derivation of standard unit costs, in line with movements of the Consumer Price Index for purposes of Engineers Estimate (EEs).
MWE Action (i) The quality of tender documents needs to be improved.
(ii) The intensity and quality of supervision of work in progress needs to be enhanced.
(iii) Technology options need to be considered. 2.
Streamline budget allocation by setting strict parameters for expenditures between categories. Institute penalties for re-allocation of funds by districts to non-construction costs.
3.
Adopt a regional approach to provision of water services to maximize use of the existing office and logistical infrastructure and also achieve economies of scale.
The regional approach works best with Water Supply Development Facility (WSDF) and Directorate of Water Resources Management (DWRM) and has been adopted by the Ministry of Water and Environment (MWE).
4.
PCIC calculation should be based on costs directly related to investment in new water facilities. Other costs may be calculated as follows: (1) PCOC for Per Capita Operational Costs. (2) PCMC for Per Capita Maintenance Costs.
Per Capita Investment Cost (PCIC) maintained as a golden indicator. In the analysis the breakdown between hardware and software should be pointed out.
5.
Institute stricter controls on utilization of budgets for construction of water resources.
Enforce sector guidelines.
6.
A comprehensive water mapping study should be carried out to establish which types of water sources are feasible for different districts and locations. Where cheaper sources of water are feasible, the expensive technologies such as rain water harvesting should be discouraged.
MWE (DWD – Directorate of Water Development and DWRM) has to produce a master plan for water development per district.
7.
EEs should not be forced onto successful bidders (i.e. contractors cannot be required to offer services at prices not exceeding the EE).
Successful bids exceeding the budget with more than 20% should be reverted to user departments.
8.
All contracts must have determinate start and end dates in order to enforce contracts or blacklist non-performers.
Technical Support Units (TSUs) to inform districts to include start and end dates into contracts.
Work plans inconsistent with the sector guidelines should be rejected.
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