- Taskforce also mandated to develop National Water Sector Investment and Financing Plan.
- The team will study and analyse the water and sanitation sector debt portfolio.
Image: MAGDALINE SAYA
A taskforce has been appointed to propose modalities of restructuring debt owed to development partners by Water Works Development Agencies and Water Service Providers.
The taskforce appointed by Water, Sanitation and Irrigation CS Sicily Kariuki has also been mandated to develop a National Water Sector Investment and Financing Plan.
The team draws membership from ministries of Water and National Treasury, State Department for Devolution, Council of Governors, the Attorney General, Water Resources Authority, office of the Controller of Budget, Kenya Private Sector Alliance and Water Sector Trust Fund.
Others are Tana Water Works Development Agency, Water Services Regulatory Board, Intergovernmental Relation Technical Committee, Water Service Providers Association and Murang'a Water and Sanitation Company.
The chairperson of the taskforce will be S.A.O Alima.
The team will study and analyse the water and sanitation sector debt portfolio and provide a comprehensive report on debt owed to development partners by WWDAs and WSPs in the country.
It will recommend in consultation with the respective county governments, applicable modalities on debt restructuring including but not limited to determining amount of debt transferable from WWDAs to WSPs.
The team will also identify which WSPs can sustainably repay against advanced loan amounts for the development of water and sanitation infrastructure, accumulated interests, penalties and arrears up to 2020/2021 Financial year and determine amounts that can be recommended for waiver.
In a gazette notice, Kariuki said the secretariat of the taskforce shall be based at the headquarters of the ministry of Water, Sanitation and Irrigation in Maji House, Nairobi.
“The term of the taskforce shall be 60 days from the date of publication of this notice; provided that the taskforce shall submit to the Cabinet Secretary an interim report within 30 days,” the notice said.
The notice further said the taskforce shall determine the applicable depreciation rates/levels of the water infrastructure developed through the subject loans.
It will also recommend strategies on debt recovery from WSPs while ensuring their sustainability and continuity in service delivery.
It will further develop a performance-based criteria to inform future investments by national government in WSPs.
The taskforce will additionally develop a road map to inform future investment plans by the National government in WSPs for efficient and effective service delivery.
WWDAs include Athi Water Works Development Agency, Coast Water Works Development Agency, Lake Victoria North Water Works Development Agency, Lake Victoria South Water Works Development Agency, Northern Water Works Development Agency, Rift Valley Water Works Development Agency, Tana Water Works Development Agency and Tanathi Water Works Development Agency.
Every major town in Kenya has its own water distribution and sewerage body.
They include Nairobi City Water and Sewerage Company, Mombasa Water and Sanitation Company, Kilifi-Mariakani Water and Sewerage Company, Tana River Water and Sanitation Company and Nakuru Water and Sanitation Company among others.
The taskforce was appointed as the government earmarked 18 state agencies for restructuring as part of IMF's condition for the $2.34 billion loans granted in April.
The Athi Water Works Development Agency is among agencies earmarked for restructuring.
-Edited by SKanyara