ECA works extensively on water projects, assisting in institutional development and regulatory framework development for water and wastewater service provision to support a sustainable tariff structure. Our services in the water sector include setting water tariffs, developing investment plans, supporting in the set-up of regulators and providing capacity building and training courses to strengthen government and regulator’s capabilities. While focused on sub-Saharan Africa, our water sector expertise also includes projects in the UK, Indonesia, Egypt and Morocco.
A selection of our projects in the Water Sector:
UK water company cost of capital analysis
ECA was contracted to advise the Consumer Council for Water on the appropriate cost of capital for the water companies in the 5-year regulatory period of Ofwat’s PR14 price review. ECA’s analysis focused on the weighted average cost of capital (WACC) and the recent financial performance of the companies.
Regulatory models for water and power, Lesotho
We assisted in the electricity regulator broadening its mandate to become the Lesotho Electricity and Water Authority (LEWA). In follow-up projects, we have assisted LEWA in the implementation of economic and financial regulatory models.
Establishment of autonomous regulator for urban water and sewerage services, Uganda
This project objective was to establish an autonomous urban water regulator for Uganda, to ensure that water supply is both financially sustainable and affordable for consumers through setting appropriate tariff structures and other regulatory mechanisms. ECA reviewed the current water sector regulatory framework, comparable frameworks from other countries, prepared a business plan and financing strategy, and drafted the required legal frameworks for establishing the regulator.
Institutional capacity building of the Egyptian Water and Wastewater Regulatory Agency
For the newly formed Egyptian Water and Wastewater Regulatory Agency, ECA developed the tariff methodology and specified approaches to routine tariff review handling and implementation. Advice was also given on other economic policy and regulation issues.
Sanitation regulation and tariffs, Zambia
ECA, together with Trémolet Consulting, worked with NWASCO to develop a strategy for regulating sanitation services in Zambia.
The establishment of autonomous regulator for urban water and sewerage services, Uganda
ECA led the team which reviewed the current position, examined comparable frameworks in other countries, prepared a business plan and financing strategy, and drafted the required legal frameworks for establishment. ECA led a high level regulatory study tour to Zambia and Kenya.
Urban water tariff study, Zimbabwe
ECA prepared financial tariff models for each of the 7 Municipalities (Harare, Bulawayo, Chitungwiza, Mutare, Kwekwe, Masvingo and Chegutu), and made recommendations on cost recovery tariffs that simultaneously met a number of national policy objectives.
Water and sanitation finance facility, Indonesia
The Facility had been designed in an earlier ECA study – the subsequent project was to assist in implementing the sector financing strategy through consensus-building within government and working closely with the chosen host agency, PIP (Indonesia Investment Agency), to develop the operational manual and procedures for PIP, the water utilities (PDAMs) and local governments.
Lilongwe Water Board tariff and willingness to pay study, Malawi
ECA examined the Lilongwe Water Board’s current performance, forecast its cost of supply with and recommended a new tariff policy. From the results of the customers’ willingness and ability to pay survey, recommendations were made to markedly improve access to clean water of poor households.