The problem of cost recovery of public water utilities in Tanzania: the case of National Urban Water Authority.
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Date
1996
Authors
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Publisher
University of Dar es Salaam
Abstract
The objective of this study was to find out the factors which influence revenue collection or cost recovery of National Urban Water Authority (NUWA) on Urban Water Supply utility responsible for the provision of water supply services to the City of Dar es Salaam. Specifically, the study sought to: Firstly, find out whether the tariff rates have influence on revenue collection. Secondly, investigate whether the water disconnections (as a deterrent measure to defaults) can contribute to the changes of revenue collection. The main problem was that despite all revenue collection strategies and efforts by NUWA yet revenue collection has all along remained poor, unable to cover operation and maintenance costs. Financial analysis of NUWA showed a big accumulated deficit of T.Shs.20.86bn/= in 1996 from T.Shs74m/= in 1985. Furthermore, NUWA has a negative ROI which showed the poor operational performance. An econometric method had been used to establish if the tariff rates and water disconnections have had influence on revenue collection. Both simple and multiple regression methods of estimation were carried out. The study found that tariff rates and water disconnections influence revenue collection. The study also found that tariff rates have higher influence on revenue collection than water disconnections. In the light of the above findings, it was recommended that priority could have been given to set price (water tariff) according to the cost of production and also device various means of mobilising customers to pay rather than undertaking unproductive water disconnections.
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Available in print form
Keywords
Water supply, Municipal revenue, National Urban Water Authority (NUWA), Dar es Salaam (city), Tanzania
Citation
Mwilawi, D. R. (1996). The problem of cost recovery of public water utilities in Tanzania: the case of National Urban Water Authority. Master dissertation, University of Dar es Salaam. Available at (http://41.86.178.3/internetserver3.1.2/search.aspx?formtype=advanced)