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

  1.  

Preliminary details

  1. Date received by WASREB

Date of receipt

08/03/2018

  1. Application fee received

Proof of payment*

Application Fee Paid

  1. Certificate of Company Registration

Copy of certificate*

  • To provide Certificate of Company Registration.
  1. Geo- Referenced Map of Service Area accompanied by “Shape Files”
  • PDF illustration
  • List of sub-locations*
  • Shape files*Mandatory for mapped WSPs (66)

To view service Area map, click here

  1. Copy of letter to county on application
  • Copy of letter*
  • Share application with the county

Not Provided

  1. Period of License (Agreed per category)

To be defined

To be illustrated in Financial Years, recommended 5 years

To Be Determined

Institutional profile

 

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

 

  1. Approved Human resource policy manual in line with Wasreb Standards

Approved updated Human resource policy Manual as per model

Provided

  1. Performance management system
  • PMS in place
  • Evidence of appraisal (implementation)

PMS defined in the HR Manual (Clause G.2).

To provide a sample copy of completed appraisal form.

  1. HIV Policy

HIV Policy

 Not provided

  1. Collective Bargaining Agreement in line with Wasreb Standards
  • Valid CBA
  • In line with approved tariff

To provide details on CBA, if any.

  1. Contracts of employment for Management Staff with clear terms and conditions of service
  • Sample Copy of signed contracts for Management Staff

 To provide a signed sample contract

  1. Contracts of employment for unionisable and other staff with clear terms and conditions of service
  • Sample Copy of signed contracts unionisable and other staff
  • Link to CBA

To provide a copy of a signed unionisable and other staff contract.

  1. Approved Organization Structure in Line with WASREB Standards

Approved Organization Structure

Provided

  1. Code of Conduct and Ethics for employees

Sample Copy of signed code of Conduct and Ethics for employees

Provided

  1. Pension Scheme Arrangements whether DB or DC and Compliance in line with Wasreb standards

Evidence of Pension Scheme Arrangements

 To provide details of the pension scheme arrangements

Information on Technical Management

 

i. Water sources and abstraction permits (Own Source or Guaranteed Bulk Supply)

  • Water sources and valid abstraction permits
  • Bulk supply agreements where applicable

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

  • Total Population in SA and population served
  • Production and billed water sources and abstraction volumes
  • Water treatment process
  • Billing and collection bamount
  • No. of staff (contract and permanent)
  • O+M cost
  • Personnel, chemical and energy costs
  • Total (registered, active) and metered connections

To view the scheme summary click here.

iii. Scheme summary waste water

  • Total Population in SA and population served
  • Volumes of influent to be treated
  • Waste water treatment capacity
  • Billing and collection amount
  • No. of staff (contract and permanent)
  • O+M cost
  • Personnel, chemical and energy costs
  • Total (registered, active) and metered connections

To provide adequate scheme summaries. The following per scheme information is missing:

  • Population served with Sewer
  • Volumes of influent to be treated
  • Wastewater treatment capacity
  • Billing and collection amount
  • No. of Staff (contract and permanent)
  • O+M cost
  • Personnel, chemical and energy costs

iv. Compliance with WQEMG –last report

  • Latest report for the month preceding the application
  • Check against previously submitted reports
  • Determine compliance

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

 

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

  • Audit certificate for the 2 years
  • Signed audit reports

Not Provided

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

 

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

  • Provide screenshots of sample modules, sample reports and sample copy of the customer bill
  • Provide system specification document and handover documents

xii. Operational business plan

  • BoD approved Operational business plan
  • Check against WASREB standards

To provide BP

xiii. Approved Disaster Management Plan

BoD Approved Disaster Management Plan

 Not provided

Asset Handover

 

i. New water supply asset handed over during last 10 years by source

  • List of assets/projects
  • Hand over certificate(s) for water supply asset(s) handed over

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

  • List of assets/projects
  • Hand over certificate(s) for waste water asset(s) handed over

To provide a list of assets and the certificate(s) to justify the asset handover.

Projected improvement of services in license period

 

i. Small scale providers in service area –situation described and projected

  • List of SSPs in the SA
  • Report of SA mapping exercise

Not Provided

  1.  

Performance improvements in license period

 

  1. Quality of Service

 

  1. Water coverage %

Check against 2022 targets and link to NWSS

WSP to harmonise the coverage figure and provide new projections.

  1. Drinking Water Quality %

100%

To attain 100% from Y1 onwards

  1. Hours of Supply

Progression to acceptable sector benchmarks

To continually exceed acceptable sector benchmark, 16 hours per day

  1. Sewerage coverage %

Check against 2022 targets and link to NWSS

  1. WSP to harmonise the coverage figure and provide new projections.
  2. Details of planned institutional and infrastructural improvements not provided. Projections therefore not supported.

Take into account:

Acceptable Sector Benchmark, >80%

  1. Effluent Quality %

100%

WSP to provide:

  • A copy of the effluent discharge permit by NEMA
  • Annual report on effluent discharge as per schedule 14 of GWQEM

Acceptable Sector Benchmark is 100% compliance with effluent discharge standards.

  1. Economic Efficiency
  1. Personnel Expenditure as % of O&M costs %

Compliance to sector benchmarks

WSP to:

  • harmonise the figures
  • provide new projection on this indicator taking into account, Acceptable Sector Benchmark is <30%
  1. O&M Costs coverage %

Progression to full cost recovery

To progress to at least 130% by 2022/23 with an annual growth of 4 percentage points annually.

  1. Revenue Collection Efficiency %

Compliance to sector benchmarks

Acceptable Sector Benchmark, >85%

  1. Operational Sustainability
  1. Non Revenue Water %

Progression to acceptable sector benchmarks

  • NRW Reduction Plan be aligned to the standards
  • Link the projections with the NRW reduction plan
  • Document annual actions from the NRW Management plan.
  1. Metering(operational) ratio %

100%

WSP to:

  • harmonise the three sets of figures
  • Provide new projections and target 100% metering by end of Y1.
  1. Staff Productivity

Progression to acceptable sector benchmarks

Acceptable Sector Benchmark, <5. Projections not realistic. A ratio of projected 2 is not feasible.

To reevaluate and resubmit.

  1. Environmental ( source) protection

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

 

  1. Evidence of Public Consultation

Evidence of Public Consultation invitation, list of participants, minutes for the license application

 To be undertaken

  1. License Fee to be paid

Yes/No

 To be paid after issuance of License

  1. Arrears of Regulatory Levy

Reconciled amount

Arrears of Kshs 2,687,885.09, As at 28th February 2018.

To be paid before issuance of the License.

  1. Arrears of Licensee Remuneration to WSBs

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.

Share this