Review and update of water and sanitation tariff study for the Drinking Water and Sanitation Unit

Drinking Water and Sanitation
24 Sep 2017 Water and Sanitation African Development Bank Urban Development

The scope of our services included reviewing the present tariff structure and level to determine their adequacy for the purpose of cost recovery and satisfactory performance of the operation and maintenance of water supply facilities in a sustainable manner. Determining the long-term cost of water production, (including operation, maintenance, management and treatment costs), transmission and  quantifying their respective proportions to be included in the new tariff structure to meet the present and forecasted water demand over the medium to long terms in rural and urban areas and for other uses (industry, livestock etc.) in Sudan. Developing and structuring a water tariff system, which is appropriate to cover costs, including operating and investment maintenance costs, as well as capital investments costs. The tariff is to be socially acceptable and in compliance with the government social development plans and give due consideration to the principles and issues of full cost recovery, consumer pays, polluter pays, equity and equality; economic efficiency, conservation of natural resources; and affordability, which means that the tariff should not exceed a defined percentage of average income and/or subsidization of certain consumer categories; while, at the same time, maintaining sustainability of water supply services for the entire target urban and rural water users and uses in Sudan. Proposing the mechanism for tariff upward revisions and design of a computerized formula/program to be maintained by the utility operators to facilitate future timely revisions.