LICENCE ANALYIS CHECKLIST AND EVALUATION FORM WATER ACT 2016
Name of Water Service Provider:
Kakamega County Water and Sanitation Company
NO | WSP APPLICATION CONDITION | Minimum Requirements | ANALYSIS/ASSESSMENT BY WASREB |
Preliminary details | |||
| Date of receipt | 08/03/2018 | |
| Proof of payment* | Application Fee Paid | |
| Copy of certificate* |
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| To view service Area map, click here | |
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| Not Provided | |
| To be defined To be illustrated in Financial Years, recommended 5 years | To Be Determined | |
Institutional profile |
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i. Compliant memorandum and objects of association to WASREB standards | As per model memorandum of association* | Kakamega County Water Act, 2016 should be reviewed and aligned to Water Act 2016 (County Government of Kakamega) MOA should be aligned to the Water Act 2016, Companies Act 2015. MOA should be amended. | |
ii. Details of board members meet the governance standards ; competence in academic and professional criteria and stakeholder representation ; gender | Information sheet on BoD | Current BoD was not selected in compliance with the sector guidelines. WSP to ensure gender balance. | |
iii. Key executive staff meet competence criteria of LN 137 of 2012 (Level 1, 2 & 3) | Profile of key staff | Internal Auditor Manager position to be filled through competitive recruitment. | |
iv. Approved Staff Establishment in line with Wasreb Standards | Approved Staff Establishment | To update staff list and provide the staff establishment vs in-post details. | |
Human Resource Management |
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| Approved updated Human resource policy Manual as per model | Provided | |
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| PMS defined in the HR Manual (Clause G.2). To provide a sample copy of completed appraisal form. | |
| HIV Policy | Not provided | |
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| To provide details on CBA, if any. | |
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| To provide a signed sample contract | |
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| To provide a copy of a signed unionisable and other staff contract. | |
| Approved Organization Structure | Provided | |
| Sample Copy of signed code of Conduct and Ethics for employees | Provided | |
| Evidence of Pension Scheme Arrangements | To provide details of the pension scheme arrangements | |
Information on Technical Management |
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i. Water sources and abstraction permits (Own Source or Guaranteed Bulk Supply) |
| Has provided 1 No. abstraction permit for Kipkaren river (WRMA/11/ELD/1CE/10097/S) which is valid upto 2020. To provide abstraction permits for all remaining sources. | |
ii. Scheme summary water |
| To view the scheme summary click here. | |
iii. Scheme summary waste water |
| To provide adequate scheme summaries. The following per scheme information is missing:
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iv. Compliance with WQEMG –last report |
| To provide report in the prescribed formats as per the WASREB Guidelines on Water Quality and Effluent Monitoring. | |
v. Copy of effluent discharge permit | Valid effluent discharge permit(s) | To provide a copy of effluent discharge permit from NEMA for each discharge point | |
vi. Asset Register – assets owned by WSP | Copy of asset register | To be provided in form of a list with Net Book Values after depreciation for each asset | |
vii. Asset Register- assets from Local Authority | Copy of asset register | To provide full asset register dully signed accompanied by signed deed of handover for County provided assets | |
viii. Asset Register –assets from Water Service Board | Copy of asset register | To provide full asset register dully signed accompanied by signed deed of handover for WSB provided assets | |
ix. Asset maintenance schedule | Copy of asset maintenance schedule | To provide an exhaustive maintenance schedule explicitly detailing specific assets. | |
x. Approved Water Safety Plan | Yes/No | Not Provided | |
xi. Signed deed of handover of all assets including new ones during the previous SPA period | Copy signed deed of handover of all assets | Provide copies of deeds of handover for projects | |
xii. Details of planned institutional and infrastructural improvements | Review planning documents (strategic plan, master plan, business plan) to determine adequacy/link to performance targets | Not Provided | |
xiii. Financing Plan | A plan to support activities in (xii) above | Not Provided | |
Information on Commercial Management |
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i. Copy of Customer contract | Check against model customer contract | To align to the model customer contract | |
ii. Customer complaint handling procedure | Check against CEG | To provide the customer handling procedure | |
iii. Customer Service Charter | Check against minimum service standards | Provided | |
iv. Procurement Policy | Approved procurement policy/or evidence of following PPAD Act 2015 | To provide the Procurement Policy | |
v. Evidence of Stakeholder Conference | Evidence of Stakeholder Conference invitation, list of participants, minutes within the last 2 financial years | To provide notice of meeting, and list of participants | |
vi. Tax compliance certificate/status | Check validity, validate with iTax | To provide the Tax compliance certificate | |
vii. Most recent two years Auditor General Reports |
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viii. Website Information on annual report | Check website for annual report | To upload the latest annual reports in the website | |
ix. Evidence of Bi- annual Customer Satisfaction Survey | Report within the last 2 years | To provide a report of the customer satisfaction survey | |
x. Adoption of Maji Voice | Check against MajiVoice list and adoption status (reports) | Utility to start using MajiVoice (As a license condition) Ensure synchronization of dashboard of open source version with Wasreb. | |
xi. Compliance to WASREB’s website requirements | Check website against WASREB standards | To align to the minimum website guidelines by Wasreb for example Service application documents missing from the website No annual report, strategic plan | |
Information on financial management |
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i. Proposed / Valid Regular Tariff | Check validity on website | Expired in June 2015. New application underway. | |
ii. Maintenance Costs / O&M | Check against tariff, audited accounts and WARIS data | 2015/16: 6.8% 2016/17: 7.78% Acceptable range is 8% – 15% | |
iii. Employee Costs / O&M | 2015/16: 52.7% 2016/17: 52.3% Acceptable Sector Benchmark, <30%. | ||
iv. O&M Coverage | 2015/16: 142.6% 2016/17: 115.56% Full cost recovery, >150% | ||
v. Quick Ratio (Acid Test ratio) | 2015/16: 0.62:1 2016/17: 0.63:1 Acceptable limit, >=1 | ||
vi. Debtor days | 60 Days Acceptable limit, <=90 days | ||
vii. Collection Efficiency | 2015/16: 96% 2016/17: 101% Acceptable Sector Benchmark, >85% | ||
viii. Debt Service Coverage Ratio | >0.9% Acceptable limit, >=1.25:1 WSP to provide basis of the figure. | ||
ix. Performance Guarantee | Yes/No | To be determined | |
x. Approved Strategic Plan | BoD Approved Strategic Plan | To provide the approved Strategic Plan. | |
xi. Specifications of the current billing system | Check against WASREB standards |
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xii. Operational business plan |
| To provide BP | |
xiii. Approved Disaster Management Plan | BoD Approved Disaster Management Plan | Not provided | |
Asset Handover |
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i. New water supply asset handed over during last 10 years by source |
| To provide a list of assets and the certificate(s) to justify the asset handover. | |
ii. New waste water assets handed over last 10 years by source |
| To provide a list of assets and the certificate(s) to justify the asset handover. | |
Projected improvement of services in license period |
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i. Small scale providers in service area –situation described and projected |
| Not Provided | |
Performance improvements in license period |
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| Check against 2022 targets and link to NWSS | WSP to harmonise the coverage figure and provide new projections. | |
| 100% | To attain 100% from Y1 onwards | |
| Progression to acceptable sector benchmarks | To continually exceed acceptable sector benchmark, 16 hours per day | |
| Check against 2022 targets and link to NWSS |
Take into account: Acceptable Sector Benchmark, >80% | |
| 100% | WSP to provide:
Acceptable Sector Benchmark is 100% compliance with effluent discharge standards. | |
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| Compliance to sector benchmarks | WSP to:
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| Progression to full cost recovery | To progress to at least 130% by 2022/23 with an annual growth of 4 percentage points annually. | |
| Compliance to sector benchmarks | Acceptable Sector Benchmark, >85% | |
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| Progression to acceptable sector benchmarks |
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| 100% | WSP to:
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| Progression to acceptable sector benchmarks | Acceptable Sector Benchmark, <5. Projections not realistic. A ratio of projected 2 is not feasible. To reevaluate and resubmit. | |
| Check CSR reports, SP, Go green, renewable energy | To Provide Evidence of Source Protection. | |
v. Governance Indicator | Score for last assessment | Score for 2015/16 is 28% Acceptable performance 50%. Weaknesses in: Utility Oversight/Supervision, Information, Control Systems, Financial Management and human resources are the worst performed. | |
vi. Pro-poor Assessment | Score for 2016/17 is 81% Acceptable performance 75%. To maintain the good performance in Pro Poor services. | ||
Other Issues |
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| Evidence of Public Consultation invitation, list of participants, minutes for the license application | To be undertaken | |
| Yes/No | To be paid after issuance of License | |
| Reconciled amount | Arrears of Kshs 2,687,885.09, As at 28th February 2018. To be paid before issuance of the License. | |
| Reconciled amount | Arrears of Kshs 43,791,174 to be cleared before issuance of License. |
Date of Evaluation: 11th April 2018
Commercial Viability Check
Not Commercially Viable. However, WSP will achieve commercial viability if the projections above are achieved.