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

1. This Order shall be cited as the Kahama Water Supply and Sanitation Authority (“Kahama WSSA”) (Tariff Adjustment) Order, 2019. Commencement date Tariffs and charges

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

3. Kahama WSSA tariffs and charges are hereby adjusted as specified in the First Schedule to this Order. 1 Kahama Water Supply and Sanitation Authority ("Kahama Wssa") (Tariff Adjustment) GN. NO. 15 (Contd) Conditions

4. The approved tariff shall be subject to the following conditions- (a) on or before 30th April 2019, Kahama WSSA shall submit a revised Business Plan that incorporates the approved tariffs and action plan for implementation of conditions of this Order; (b) Kahama WSSA shall implement the projects as detailed in the Second Schedule by using funds generated from the approved tariffs; (c) Kahama WSSA shall attain the key performance indicators as shown in the Third Schedule to this Order; (d) Kahama 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) Kahama 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 Kahama WSSA's performance in comparison with other Water Supply and Sanitation Authorities and the improvement of time. This evaluation will be considered by EWURA in evaluating the reasonableness of all future requests for tariff adjustment. its performance over Disapplication of Tariff Order

5. This Order hereby disapplies (Tariff Adjustment) Order No. 13 - 008 of 1st January 2014 and the Amendment Order No. 015-019 of 1st November 2015. 2 Kahama Water Supply and Sanitation Authority ("Kahama Wssa") (Tariff Adjustment) GN. NO. 15 (Contd) ________ FIRST SCHEDULE ________ APPROVED TARIFFS AND CHARGES Schedule 1(a): Current and Approved Water Tariff (TZS/m3) Customer Category Domestic Institutional Commercial Industrial Water Kiosk Mining Car Wash WAT Current Tariff Approved Tariff 2017/18 2018/19 2019/20 2020/21 1,015 1,235 1,300 1,400 1,235 1,970 1,880 1,180 1,688 2,060 2,165 2,327 2,000 3,275 3,125 1,961 1,888 2,320 2,450 2,601 2,000 3,670 3,493 2,192 2,069 2,540 2,660 2,850 2,000 4,031 3,800 2,308 Schedule 1(b): Current and Approved Service Charged (TZS/Month) Customer Category Domestic Institutional Commercial Industrial Water Kiosk Mining Car Wash Current Charge Approved Charge 2017/18 2018/19 2019/20 2020/21 Service charge is not allowed 2,500 4,000 4,500 4,500 500 80,000 4,500 3 Kahama Water Supply and Sanitation Authority ("Kahama Wssa") (Tariff Adjustment) GN. NO. 15 (Contd) Schedule 1 (c): Current and Approved Multi-Year Water Connection Fee (TZS/Connection) Customer Category Current Fee Approved Fees 2017/18 2018/19 2019/20 2020/21 All New Customers 20% of Recoverable Expenditure as Stipulated in Section 24 of Water Supply Regulations, 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 Domestic Institution Commercial Industrial Water Kiosk Mining Car Wash Current Fee Approved Fees 2017/18 2018/19 2019/20 2020/21 10,000 20,000 20,000 20,000 10,000 200,000 20,000 15,000 30,000 30,000 30,000 20,000 200,000 30,000 15,000 30,000 30,000 30,000 20,000 200,000 30,000 15,000 30,000 30,000 30,000 20,000 200,000 30,000 Schedule 1 (e): Current and Approved Sewarage Disposal Charge (TZS/Trip) Vehicle Type Current Charge Approved Charges Vacuum truck 10m3 Vacuum truck 5m3 Vacuum truck 4m3 Vacuum truck 3m3 2017/18 - - - - 2018/19 10,000 5,000 5,000 5,000 2019/20 10,000 5,000 5,000 5,000 2020/21 10,000 5,000 5,000 5,000 4 Kahama Water Supply and Sanitation Authority ("Kahama Wssa") (Tariff Adjustment) GN. NO. 15 (Contd) _________ SECOND SCHEDULE __________ PROJECTS TO BE IMPLEMENTED Description of Activity TZS Million Deadline 2018/19 2019/20 2020/21 Rehabilitation and Replacement Rehabilitation of intake structure at Nyihogo dam Major rehabilitation of the shallow wells Removal of mud from Nyihogo dam to increase capacity the Rehabilitation of plants at Nyihogo dam Replacement turbidimeter of (HACH0) and chlorine analyser (HACH) Replacement of Chlorine analyser treatment rehabilitation of 2 storage tanks for dam water system Replacement of PVC Pipe 4" for dam transmission system Replacement of booster pumps Replacement distribution board Replacement of 10 Pcs steel pipes Electronic of Replacement of the DN 110-250 Replacement of Roll Poly Pipes Class D DN 1"-3" Procure and installation of 6 new butterfly Valve DN300-750mm Procure and replace 22 double collar of DN 110-250mm PN12.5 Replace prepaid meters

15.00 30th 2021 30th 2021 30th 2021 30th 2021 30th 2020 30th 2021 30th 2019 30th 2021 30th 2020 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 June June June June June June June June June June June June June June June 5 Kahama Water Supply and Sanitation Authority ("Kahama Wssa") (Tariff Adjustment) GN. NO. 15 (Contd) Description of Activity TZS Million Deadline Replace all meters with permanent defective by purchasing 250 new water meters of 3/4" Replace all meters with permanent defective by purchasing 50 new water meters of 1" Replace all meters with permanent defective by purchasing 800 new water meters of 1/2" Replacement of security office building Rehabilitation of Booster Building, Rehabilitation of Pump Building Rehabilitation of Boiler Building, of Retention Rehabilitation structures (Sed Tanks) Rehabilitationof servant building (Shunu Main Tank Rehabilitation of servant building (Shunu Camp) Replacement of office tables Replacement of 8 pieces of stabilizers of different capacity Upgrading billing software 2018/19 2019/20 2020/21

5.00 Subtotal Rehabilitation cost) (Replacement and

287.50 New Investment Procure and installation of 20 new sluice gate DN160 Procure and installation of 20 new sluice gate DN200 Procure and installation of 20 new sluice gate DN250 Install 5 pieces of flap valves

1.50 Purchase electromagnetic flow meters and install 6

78.80 6 30th 2021 30th 2021 30th 2021 30th 2020 30th 2019 30th 2019 30th 2019 30th 2019 30th 2020 30th 2020 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 June June June June June June June June June June June June June June June June June June Kahama Water Supply and Sanitation Authority ("Kahama Wssa") (Tariff Adjustment) GN. NO. 15 (Contd) Description of Activity TZS Million Deadline 2018/19 2019/20 2020/21

5.00 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 30th 2021 30th 2019 30th 2020 30th 2021 June June June June June June June June June June June

877.72 Purchase 50 new water meters of 2" Purchase of I brand new motor vehicle Purchase motorcycle Purchase of 10 desktop computers and 6 laptop computers of 10 brand new Purchase of two modern printers Purchase of five new UPS Purchase of the new dewatering pumps Purchase standby generator at the main tank Network extension to Lugera- Bomage, Mhongolo, Nyashimbi, Mhongolo Magharibi, Mhungula downhill, and Mhungula hill Network extension to Mhungula Mlimani, Mwanva Masaki and Nyakato Mikaratusi Network extension to Kagongwa Town and Zongomera

231.67 Subtotal (New Investment cost) Total Investment Costs

739.67 7 Kahama Water Supply and Sanitation Authority ("Kahama Wssa") (Tariff Adjustment) GN. NO. 15 (Contd) __________ THIRD SCHEDULE __________ KEY PERFORMANCE INDICATORS FOR 2018/19 – 2020/21 Description New Connections (water) Non Revenue Water Metering Ratio Revenue Collection efficiency (without arrears) Unit No. % % % Performance Target 2018/19 2019/20 2020/21 1,786 14 100 1,986 14 100 1,757 14 100 90 90 90 Dodoma, ......................, 2018 NZINYANGWA E. MCHANY Director General 8