GAZETTE NOTICE NO. 10505

in accordance to the requirements of section 139 of the Water Act, 2016. After considering the application, the written and oral submissions by all stakeholders during the consultation period, and based on latest available data, WASREB has determined an upward tariff review for EWASCO is justified in order to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions Attached to the tariff. WASREB gives a one (1) month's notice to all existing and potential customers of EWASCO that the approved tariffs for the four financial years, 2019/20, 2020/21, 2021/22 and 2022/23 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2019/20, 2020/21, 2021/22 and 2022/23 Customer Category Approved Tariff Structure Consumption Block in M3 KSh. Domestic 1-6 45 7-20 60 21-50 70 51-100 80 101-300 95 Customer Category Approved Tariff Structure Consumption Block in M3 KSh. >300 130 Multi-Dwellin • Units (>5 units with a shared connection) Per M3 60 Commercial/ Industrial and Government 1-50 70 51-100 80 101-300 95 > 300 130 Public Schools, Universities and colleges 1-600 50 601-1200 60 >1200 90 Standpipes/Kiosks Per M3 35 1.2 Indexation of the Approved Tariff The utility's tariff shall be eligible for annual indexation of the approved tariff, as per the regulations of the Water Services Regulatory Board (WASREB). The inflation adjustment shall come into effect every July of the tariff period commencing July 2021. 1.3 Sewerage Tariff (a) Consumers with a Water Connection Sewerage volumes for customers with a water connection shall be determined at 75% of the volume of water consumed at the tariff of water specified in 1.1 above. (b) Consumers without a Water Connection Sewerage consumers without a water connection shall be charged as follows: • Domestic (Single dwelling unit): Ksh. 300 per month. • All other categories: 75% of the volume of water consumed, as per the metered source, at the rates specified in 1.1 above. 2.0 Miscellaneous Charges Bend Service Charge (KSh.) Standing Charge Per Connection per Month Connection Size 1/2 inches 50 'A inches 100 1 inch 250 1 1/2 inches 250 2 inches 250 3 inches 450 4 inches 800 6 inches 1250 8 and above 2000 Water Deposit Category of consumer Domestic 2500 Retail shops less than 10 m3 3000 Retail shops more than 10 m3 3,500 Bar, restaurants less than 15 m3 4000 Bar, restaurants more than 15 m3 6,000 Hotel class "A" and-"B" less than 150 m3 12,000 Hotel class "A" and "B" more than 150 m3 15000 Hotel class "C" and 'D' less than 150 m3 • 18000 Hotel class "C" and 'D' more than 150 m3 20,000 Hospitals more than 150 m3 20,000 Health centres less than 150 m3 12,000 Schools and other institutions more than 200 m3 20,000 Schools less than 200 m3 10,000 Minor construction sites more than 200 m3 15,000 Major construction sites more than 300 m3 50,000 Light industries less than 200 m3 30,000 Medium industrial between 200 m3 and300 m3 50,000 Heavy industries more than 300 m3 100,000 Water Kiosks 5,000 Customers with only sewer connection to be charged a deposit equivalent to water connection Other Charges Service New water connection fee — Connection size: 1/2 inch to 1 inch 2,500 New water connection fee — Connection size: 1.5 inches to 3 inches 7,500 New water connection fee — Connection size above 3inches 15,000 Water Reconnection fee — at meter point 1,000 Water Reconnection fee — at mains 5,000 and double deposit 8th November, 2019 Iteml Service Charge (KSh.) Tanker — 8000, 16,000 litres 2,500, 5,000 respectively per tanker within EWASCO area for all consumers Sale of water per m3 at bowling point (own tanker) 80 Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 Sewer Connection- Residential/ Domestic 5,000 Sewer Connection- Commercial, Government, schools, Universities and Colleges 7,500 Sewer Connection- Industrial 15,000 Private sewer unblocking 2,500 Leak detection services 1,000 Sewer Reconnection fee 15,000 Statement of account fees 200 For cutting off the supply at the request of the consumer 200 For turning on the supply otherwise than in respect of a first connection 200 Exhauster Services (Company Exhauster) 5,000 for other customers and 4,000 for informal settlements Private Exhausters (Dumping into the company's sewer system) 15,000per Truck per month Penalties Illegal water connection, —Commercial, Industry, Construction (Fraud) 100,000 plus estimated consumption during the period of the illegality Illegal water connection, (Fraud) — Domestic 30,000 plus estimated consumption during the period of the illegality Overcharging (fraud) at water kiosk 15,000 Illegal sewer connection—Commercial, Industry, Construction 100,000 Illegal sewer connection—Domestic, Government, Schools, Universities and Colleges 30,000 Self-reconnection after cut off for non-payment 5,000 and billing to be backdated from date of cut off Surcharge for tampering with meters (this to include meter removal, reversing of meter etc) 5,000 Surcharge for direct suction of water from the supply line using a pump 10,000 3.0 Approved Cost Structure Below is the summary of the cost structure that makes up the Average annual total costs to be incurred by EWASCO during the tariff period. KSh. KSh. A. Cost Subject to Annual Indexation Operations and Maintenance costs 263,090,314 B. Fixed Costs Average Annual Investment Cost 52,643,687 Average Annual Debt Repayment 43,959,971 Average Annual Asset Renewal 60,925,553 Sub-total—Fixed Costs 157,529,211 Total Average Annual Cost 420,619,525 Projected Average Annual Revenue 501,952,566 Average Annual Cost Coverage 119% 4.0 Conditions attached to the Tariff Approval The tariff adjustment approval is approved for four years and during which all the assumptions made in the tariff projections will be monitored. The conditions attached to this approval which shall form part of the license conditions of Embu Water and Sanitation Company are: • (i) Service Delivery Conditions attached to the Tariff Target 2019/20 2020/2021 2021122 2022/23 Water Coverage (%) 94 96 97 98 Sewerage Coverage (%) 23 -25 27 29 Water quality standards (%) 1009 compliance with the quality standards Non-Revenue Water (%) 36% 33% 30% 27% Hours of Supply (Hrs) 24 24 24 24 Staff per 1000 connections 4 4 4 4 Metering ratio (%) 100 100 100 97 Collection Efficiency (%) 92% 94% 95% 95% Resale at Kiosk Regulate resale by kiosk vendors at KSh. 2 per 20-litres. Tariffs at kiosks must be displayed at strategic points for public awareness (ii) Annual budgets: The utility shall adhere to the budgetary levels set in the tariff. (iii) Surpluses: The surpluses projected to be realized shall only be used on the rehabilitation/replacement of dilapidated water networks, in order to curb physical losses of water. EWASCO shall in the first year of tariff implementation identify priority networks to be replaced/ rehabilitated and communicate the same to WASREB in writing. (iv) Catchment Protection: The utility shall undertake measures to conserve/protect the catchment areas of their source of water as part of Corporate Social Responsibility. (v) Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided. (vi) Investments: The utility shall undertake the following investments below during the tariff period and also submit quarterly progress reports on the same. INVESTMENTS BY EMBU WATER AND SANITATION COMPANY FOR THE TARIFF PERIOD 2019/2020 Project Area Guide Size Sample Descriptions Unit Quantity Project Cost (KSh.) A. Purchase and Installation of Regional Master meters • North West Zonal Meters DN 90 Mechanical Cold-Water meter Woltmann Water meter No. 4 95,600 Zonal Meters DN 100 Mechanical Cold-Water meter Woltmann Water meter No. 2 65,000 Zonal Meters DN 150 Automatic Meter Reading (AMR) Meter type No. 2 190,000 Zonal Meters DN 200 Automatic Meter Reading (AMR) Meter type No. 1 145,000 North East Zonal meters DN 90 Mechanical Cold-Water meter Woltmann Water meter No. 2 47,800 Zonal meters DN 100 Mechanical Cold-Water meter Woltmann Water meter No. 2 65,000 Zonal meters DN 150 Automatic Meter Reading (AMR) Meter type No. 2 190,000 Zonal meters DN 200 Automatic Meter Reading (AMR) Meter type No. 1 145,000 South West Zonal Meters DN 90 Mechanical Cold-Water meter Woltmann Water meter No. 2 47,800 Zonal Meters DN 100 Mechanical Cold-Water meter Woltmann Water meter No. 2 65,000 Zonal Meters DN 150 Automatic Meter Reading (AMR) Meter type No. 4 380,000 Zonal Meters DN 200 Automatic Meter Reading (AMR) Meter type No. 3 435,000 South East Zonal Meters DN 90 Mechanical Cold-Water meter Woltmann Water meter No. 3 71,700 Zonal Meters DN 100 Mechanical Cold-Water meter Woltmann Water meter No. 2 65,000 Zonal Meters DN 150 Automatic Meter Reading (AMR) Meter type No. 2 190,000 Zonal Meters DN 200 Automatii Meter Reading (AMR) Meter type No. 1 145,000 Kanamori Zonal meters DN 90 Mechanical Cold-Water meter Woltmann Water meter No. 2 47,800 Zonal meters DN 100 Mechanical Cold-Water meter Woltmann Water meter No. 2 65,000 Zonal meters DN 150 Automatic Meter Reading (AMR) Meter type No. 1 95,000 Sub-total 40 2,550,700 B. Purchase of Movable Assets Procurement of computers, software and Accessories ICT support Computer Server Lumpsum 1 2,000,000 Computers and Accessories Lumpsum 2,715,000 Sub-total 4,715,000 B. Purchase of Movable Assets Motor vehicles and motor cycles Motor cycles 125 cc Stroke 54, Engine Displacement 123, Max Power 10.7 bhp@7500 rpm No. 5 1,000,000 Motor vehicle 3000 cc Diesel; 5 speed Manual; transfer box for 4 x 4 select No. 1 6,000,000 Sub-total 6 7,000,000 C. Extension of Service Lines Extension of service lines- New Distribution Area Kithimu Distribution Area DN 50 50 mm diameter PN 16 HDPE pipe _ Metres 3550 745,500 DN 63 63 mm diameter PN 16 HDPE i pipe Metres 4,000 1,220,000 Ena Market Distribution Lines DN 50 50 mm diameter PN 16 HDPE pipe Metres 2,300 483,000 Ugweri Market Distribution Lines DN 50 50 mm diameter PN 16 HDPE pipe Metres 2,250 472,500 DN 63 63 mm diameter PN 16 HDPE pipe Metres 3,500 1,067,500 Karurumo Market Distribution Lines DN 50 50 mm diameter PN 16 HDPE pipe Metres 1,500 315,000 DN 63 63 mm diameter PN 16 HDPE pipe Metres 2,500 762,500 Sub-total 25,100 5,066,000 D. NRW Reduction Plan Reduce NRW Planned activities to reduce NRW(Phasel) 10,050,000 8th November, 2019 Project Area Guide Size Sample Descriptions Unit Quantity Project Cost (KSh.) Total 33,381,700 INVESTMENTS BY EMBU WATER AND SANITATION COMPANY FOR THE TARIFF PERIOD 2020/2021 Project Area Guide Size Sample Descriptions Unit Quantity Project Cost (KSh.) A. Purchase of Movable Assets Motor vehicles and motor cycles Motor cycles 125 cc Stroke 54, Engine Displacement 123, Max Power 10.7 bhp@7500 rpm No. 10 2,000,000 Accounting Software Upgrade 6,000,000 Motor vehicle Procurement of Motor Vehicle (Sampling Vehicle) No. 1 6,000,000 Sub-total 14,000,000 C. Sewer Improvement Phase 2 -Blue valley Estate Construction of Manholes No. 150 5,250,000 Laying of sewer pipes Metres 4,000 28,000,000 Sub-total 4,150 33,250,000 D. Rehabilitation of Service Lines Water System rehabilitation Kaunda Estate Rehabilitation DN 110 110 mm diameter PN 16 HDPE pipe Metres 2,700 2,384,100 Muchonoke—Minuri— - Mbita DN 160 160 mm diameter PN16 UPVC pipe (6M UPVC Straights) Length 4,500 5,226,000 Sub-total 7,200 7,610,100 E. Extension of Service Lines Implemented internally by Kithimu Distribution Area Neighbourhood 'DN 50 50 mm diameter PN 16 HDPE pipe Metres 6,000 1,260p00 WSP DN 63 63 mm diameter PN 16 HDPE pipe Metres 5,000 1,525,000 Ena Market Distribution Lines Neighbourhood DN 50 50 mm diameter PN 16 HDPE pipe Metres 2,500 525,000 Ugweri Market Distribution Lines Neighbourhood DN 50 50 mm diameter PN 16 HDPE pipe Metres 2,500 525,000 DN 63 63 min diameter PN 16 HDPE pipe Metres 5,000 1,525,000 Karururno Market Distribution Lines DN 50 Neighbourhood 50 mm diameter PN 16 HDPE pipe Metres 2,500 525,000 DN 63 63 nun diameter PN 16 HDPE pipe Metres 3,000 915,000 Gachoka—Gachuriri Area DN225 225 mm diameter PN16 (6M UPVCMetres Straights) 5,500 12,969,000 Sub-total • 19,769,000 F. NRW Reduction Plan Reduce NRW Planned activities to reduce — NRW (Phase 2) 12 400 000 Total 53,779,100 INVESTMENTS BY EMBU WATER AND SANITATION COMPANY FOR THE TARIFF PERIOD 2021/2022 Project Area ' Guide Size Sample Descriptions Unit' Quantity Project Cost (KSh.) A. Purchase and Installation of Regional Master meters All 0.5" replacements, new connections and conversion from flat rat No. 4,000 14,000,000 0.75" No. 150 600,000 1" No. 75 637,500 1.5" No. 75 1,650,000 • 2" No. 50 1,775,000 3" No. 50 2,100,000 4" No. 50 2,500,000 6" No. 25 2,375,000 8" No. 5 725,000 10" No. 5 1 ,250 ,000 12" No. 5 1,500,000 Sub-total 4,490 29,112,500 B. Purchase of Movable Assets Motor cycle Procurement of Motorbikes-125 cc , No. 10 2,000,000 Motor vehicles " Procurement of Motor Vehicle-3000 cc No. 1 6,000,000 Sub-total 11 8,000,000 C. NRW Reduction Plan Reduce NRW Planned activities to reduce NRW (Phase 3) 12,100,000 Rehabilitation of Service Lines Improvement of P.I line DN 160 160 mm diameter PN16 (6M UPVC Straights) Metres 3,750 4,355,000 Kanyariri—Muchonoke— Cianyi—Kavindi (old line) DN 160 -160 mm diameter PN16 UPVC pipe (6M UPVC Straights) Length 5,000 5,806,667 Extension of service lines Gachuriri—Makima DN225 225 mm diameter PN16 (6M UPVC Straights) Metres 7,000 16,506,000 15,750 26,667,667 B. Improvement on treatment plant. Extension of Karigiri Treatment plant Flocculation and Sedimentation Tanks Lumpsum 40,000,000 Sub-total 40,000,000 Total 120,235,167 2022-2023 Project Area Guide Size Sample Descriptions Unit Project Cost (KSh.) A. Extension of service lines New distribution area Implemented internally by WSP DN 75 Kithimu Distribution Lines Lumpsum 7,934,495 DN 75 Ena Market Distribution Lines— Neighbourhood Lumpsum 3,267,145 DN 160 Ugweri Market Distribution Lines-Neighbourhood Lumpsum 2,333,675 DN 160 Karurumo Market Distribution Lines-Neighbourhood Lumpsum 2,333,675 Contracted out Gachoka—Gachuriri—Makima N/A 50,080,245 65,949,235 B. Capital Works Office Improvement New office block Lumpsum 4,000,000 C. NRW Reduction Plan Reduce NRW Planned activities to reduce NRW (Phase 4) 12,000,000 Total 81,949,235 Dated the 24th October, 2019. ROBERT GAKUBIA, Chief Executive Officer, MR/0449715 Water Services Regulatory Board.