wssb capacity enhancement workshops 1. 1. the uganda performance contract & purpose 2....

WSSB Capacity Enhancement Workshops •1

1. The Uganda Performance Contract & Purpose

2. Performance Key Elements3. Water Board’s Rights & Obligations4. Ministry of Water & Environment’s

Rights & Obligations5. Dispute Resolution6. Annex & Schedules

•2WSSB Capacity Enhancement

Workshops

•3

MWE

Water Board

Customers

Private Sector

Performance Contract

Management Contract

Customer Contract

WSSB Capacity Enhancement Workshops

Contract between Minister of Water and Environment and local Water Board to transfer care and management of water and sanitation system to Board


Workshops

Defines:◦ Work to Be Done and Term◦ Amount to Be Paid for the Work◦ Performance Standards◦ Adjustments for Changes◦ Allocation of Risk◦ Insurance and Bond Requirements◦ Termination for Cause

•Uganda Small-Scale Infrastructure Providers - Water

Contract Administration Training •5

Definition of Terms Used and Abbreviations

Recitations (who has authority and laws)◦Local Governments Act—Requires transfer of

water and sanitation responsibilities from central to local government

◦Water Act—Requires the Minister of Water and Environment (MWE) to enter into performance contract with local water board


Workshops

Validity of the contract◦ Term of contract (dates of starting & finishing)◦ Ability of the MWE to renew the contract with the

Board Purpose of the contract

◦ Sets forth Board’s role, duties, performance targets, and dates for achieving goals


Workshops

Achieve minimum performance standards as outlined as Key Performance Indicators (KPI)

Water sales Nonrevenue water Collection efficiency Water quality compliance

Achieve minimum satisfactory score on technical inspection by MWE


Workshops

Properly maintain water assets (pumps, pipes, meters, borehole…)

Board shall subcontract day-to-date operations to private sector company

Charge and collect tariffs in accordance with Tariff Policy

Allow MWE to inspect assets of Board


Workshops

Prepare a 3-year Business plan, which is updated each year◦ Plan objectives◦ Services provided by Board◦ Performance standards to be achieved◦ Revenue and cost forecasts and financial

reserves to be kept◦ Required capital forecast


Workshops

Establish escrow accounts for investment and operation of the water system◦ Pay management fees to private-sector operator◦ Pay Board’s operating expenses including taxes


Workshops

Prepare an Annual Report to MWE:◦ Report of prior year’s operations

Performance indicators Other information required by MWE

◦ Financial statements for year Audited financial statements Assessment of costs of carrying out community

service obligations


Workshops

Provide overall management of the Water Board and assess Board’s KPI performance

Review reports from the Water Board Amend service standards and recordkeeping

of the Board, as required Provide capital for needed assets Terminate the Performance Agreement if

Water Board has not complied

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WSSB Capacity Enhancement Workshops

Disputes referred to the Director DWD for resolution by Minister

If Minister is unable to resolve dispute within 14 days, will notify Board of additional procedures under Arbitration and Conciliation Act of Uganda.


Workshops

Specific clauses for particular Water Board◦ Dates and duration of contract◦ Number of Water Board members◦ Amount of capital expense (CAPEX) to be

deposited into investment escrow account◦ Payment to Water Board based upon number of

members


Workshops

1—Authority of Board and Service Area2 – Assets Managed by Water Board3 – Performance Indicators4 – Capital contributions to escrow account5 – Performance Review Methodology6 – Terms of Reference for Water Boards7 – Standards of Service and Recordkeeping

Requirements


Workshops


Workshops

wssb capacity enhancement workshops 1. 1. the uganda performance contract & purpose 2....

Documents