The Mtwara Water Supply and Sanitation Authority (“Mtwara WSSA”) (Tariff Adjustment) Order, 2019

1. This Order shall be cited as the Mtwara Water (“Mtwara and Sanitation Authority Supply WSSA”)(Tariff Adjustment) Order, 2018.

2. This Order shall come into force on 1st January 2019.

3. Mtwara WSSA tariffs and charges are hereby adjusted as specified in the First Schedule to this Order. Conditions

4. The approved tariff shall be subject to the following conditions- (a) on or before 31st March 2019, Mtwara WSSA shall submit a revised Business Plan that covers a period of 2018/19 – 2020/21 and the approved tariffs and action plan for implementation of conditions of this Order. The Plan shall include projects to be implemented in FY 2020/21 of TZS 1,090 million; incorporates (b) Mtwara WSSA shall continue to cause her financial reports to be audited by a CAG or any authorized person as per section 33 (1) of the Public Audit Act 1 Mtwara Water Supply and Sanitation Authority ("Mtwara Wssa")(Tariff Adjustment) GN. NO. 13 (Contd) and ensure that it submits copies of the audited financial statements to EWURA; (c) On or before 30th June 2019, Mtwara WSSA shall undertake valuation of their assets and submit to EWURA an Asset Valuation Report certified by a registered Valuer; (d) Mtwara WSSA shall, on annual basis as part of its annual perfomance report, submit to EWURA reports on the implementation of each of the Tariff Order condition and each cost item of the revenue requirement; (e) Mtwara WSSA shall continue to provide EWURA with information about its financial and operating condition in accordance with the requirements of EWURA. This information will be used by EWURA to evaluate Mtwara WSSA's perfomance in comparison with other Water Supply and Sanitation Authorities and the improvement of its perfomance over time. This evaluation will be considerered by EWURA the reasonableness of all future requests for tariff adjustment; in evaluating (f) Mtwara WSSA shall implement the projects as detailed in the Second Schedule to this Order by using funds generated from the approved tariffs and attain the key performance indicators as shown in the Third Schedule to this Order. Disapplication of Tariff Order

5. This Order hereby disapplies the (Tariff Adjustment) Order No. 2015-005 of 1st June 2015 in the area 2 Mtwara Water Supply and Sanitation Authority ("Mtwara Wssa")(Tariff Adjustment) GN. NO. 13 (Contd) served by the Mtwara Water Supply and Sanitation Authority (Mtwara WSSA). ________ SCHEDULES ________ 3 Mtwara Water Supply and Sanitation Authority ("Mtwara Wssa")(Tariff Adjustment) GN. NO. 13 (Contd) ___________ FIRST SCHEDULE __________ APPROVED TARIFFS AND CHARGES Schedule 1(a): Current and Approved Water Tariff (TZS/m3) Consumptio n Bands Current Tariff Proposed Tariff Approved Tariff 2017/18 2018/19 2019/2 0 2018/1 9 2019/20 2020/2 1

0 - 10 >10 - 20 >20 945 1,090 1,190 1,735 1,885 2,080 1,735 1,835 2,030 1,735 1,835 2,080 1,000 3,000 1,266 1,200 1,300 1,350 2,600 2,700 2750 2600 2750 2800 2600 2700 2800 1500 3600 1300 1400 1450 2700 2800 2850 2700 2850 2900 2700 2800 2900 1500 3600 1,090 1,260 1,370 2,000 2,170 2,400 2,000 2,110 2,340 2,000 2,170 2,400 1,000 3,450 1,460 1,110 1,280 1,400 2,030 2,210 2,440 2,030 2,150 2,380 2,030 2,210 2,440 1,110 1,280 1,400 2,030 2,210 2,440 2,030 2,150 2,380 2,030 2,210 2,440 1,000 1,000 3,510 3,510 1,480 1,480 Customer Category Domestic Commercia l Institution Industrial Kiosk Bowser WAT Schedule 1(b): Current and Approved Multi-Year Service Charge (TZS/Month) Customer Category Proposed Charges Approved Charges Current Charges 2017/18 2018/19 2019/2020 2018/19 2019/20 2020/21 Domestic Commercial Institution Industrial 2000 5000 5000 6000 - - - - - - - - 4 Mtwara Water Supply and Sanitation Authority ("Mtwara Wssa")(Tariff Adjustment) GN. NO. 13 (Contd) Schedule 1 (c): Current and Approved Multi-Year Water Connection Fee (TZS/Connection) Customer Category Domestic Commercial Institution Industrial Current Fee Approved Fees 2017/18 2018/19 2019/20 2020/21 20% of recoverable expenditure as per section 24 of Water Supply Regulation, 2013 20% of recoverable expenditure as stipulated in Section 24 of Water Supply Regulation, 2013 Schedule 1 (d): Current and Approved Water Reconnection Fee (TZS/Reconnection) Customer Category Current Fee Proposed Fees Approved Fees 2017/18 2018/19 2019/2020 2018/19 2019/20 2020/21 Domestic Commercial Institution Industrial 20000 30000 30000 40000 25,000 40,000 40,000 50,000 25,000 20,000 40,000 30,000 40,000 30,000 50,000 40,000 20,000 30,000 30,000 40,000 20,000 30,000 30,000 40,000 ___________ SECOND SCHEDULE ___________ PROJECTS TO BE IMPLEMENTED BY USING FUNDS GENERATED THROUGH WATER TARIFF Description of the Activity Rehabilitate Mbuo/Mkunwa water supply Mbawala Chini W/S Rehabilitate office buildings & equipment Replacement of 6 B/H pumps peripherals Rehabilitate conveyance and pumping mains Mtawanya & Mikindani Rehabilitate distribution pipes Mtwara + Mikindani Rehabilitate valves & chambers in pipelines Rehabilitation existing storage tanks 5 TZS (million) 2018/19 2019/20 250 250 35 10 10 50 50 10 0 250 30 10 10 50 50 10 Mtwara Water Supply and Sanitation Authority ("Mtwara Wssa")(Tariff Adjustment) GN. NO. 13 (Contd) Description of the Activity Rehabilitate existing 46 public kiosks Subtotal (Replacement ) Increase water production from the current 9000 m3/day to 15,000 m3/day Pipe Network extensions (Mbae East, Mtepwezi, Lilungu, Mitengo Chipuputa TZS (million) 2018/19 2019/20 10 675 250 360 10 420 200 320 Purchasing working tools to reduce NRW from the current 30% - 25% 100 100 Construct new Residential houses Mangamba, Mtawanya 50 50 Subtotal - (New Investments) Total Investment Cost 760 1,435 670 1,090 _________ THIRD SCHEDULE _________ KEY PERFORMANCE INDICATORS FOR 2018/19 – 2020/21 Description New Connections (water) Non Revenue Water Metering Ratio Proportion of population living the area with water network (%) Proportion of population served with water (%) WSDP indicator) Average hours of supply Ratio of the connections to households (WSDP Indicator) Revenue Collection efficiency (without arrears) total number of water total number of the Unit No. % % % % % % % Perfomance Target 2018/19 2019/20 2020/21 1058 27 100 92 80 13 60 85 1100 25 100 95 90 15 75 95 1100 25 100 97 92 16 75 95 Dodoma, ......................, 2018 NZINYANGWA E. MCHANY Director General 6