GAZETTE NOTICE NO. 6480

in accordance with the requirements of section 139 of the Water Act, 2016. 2228 2228 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 a justified tariff to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions attached to the tariff. WASREB notifies all existing and potential customers of Karimenu II Dam Bulk Water Supply that the approved tariffs for the three financial years 2022/23, 2023/24 and 2024/25 shall be as follows: 1.0 Approved Bulk Tariff Structure 1.1 Bulk Water Tariff Structure for the Period 2022/2023 to 2024/2025 Approved Tariff (KSh./M3) Sale per m3 36 2.0 Analysis of Cost Structure Below is the summary of the projected annual cost structure that makes up the total costs to be incurred by Karimenu Bulk Supply during the tariff period: Particulars Average Annual Revenue/Costs for the Period Amount (KSh.) Personnel Expenditure 37,190,799 Training 3,762,367 General Administration 12,584,327 Other Operational Expenditure* 78,868,987 Maintenance Expenditure 9,276,696 Total O&M Expenditure 141,683,175 Minor Investments (i) Water supply to areas affected by construction of the dam 30,000,000 (ii) Fencing around the dam 12,000,000 (iii) Source protection works/ conservation activities (Addressing pollution from Kirache market) 18,000,000 (iv) Buffer zone acquisition 15,000,000 Loan Repayment (Interest Only) * 660,082,187 Total Expenditure 876,765,363 Average Revenue 901,698,663 Total Cost Coverage 103% 3.0 Conditions Attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions for Karimenu Bulk Water Supply are: (a) Service Delivery Conditions Attached to the Tariff. Target 2022/2023 2023/2024 2024/2025 Non-Revenue water 7% 7% 7% Water Quality Standards 100% Compliance with all standards Hours of Supply 24 24 24 Metering ratio 100% 100% 100% Staff per 1million m3 billed (No.) 33 35 35 Collection Efficiency (%) 95% 95% 95% Total Cost Coverage 103% 103% 103% (i) Performance Evaluation Performance targets to be met and ascertained by WASREB, at the end of the 1st year of the tariff period. Non achievement of the set targets without justifiable cause shall lead to reduction of the approved tariffs as a penalty. (ii) Annual Budgets The approved cost structure shall form the annual budget for the Bulk Water Supply for each of the financial years of the tariff period. (iii) Ring-Fencing of Capital Expenditure The WSP to open a separate account for capital component of the tariff, to deposit the appropriate share of revenue into this account which is only to be used for capital expenditure and repayment of loans as provided for in the approved tariff. (iv) Tariff Assessment WASREB will carry out a tariff implementation review within the first 12 months of approval and implementation during which a joint assessment with the utility on the trend in Billing (KSh.) shall be carried out and status of implementation of the tariff evaluated. (v) Loan Repayment AWWDA shall immediately open a separate bank account where it shall deposit monthly equal instalments for the semi-annual loan repayments. 2023/2024 2024/2025 2025/2026 Loan Repayment Amount (KSh.) 731,883,016 660,876,256 587,487,289 (b) Investments: The utility shall undertake the following investments within the tariff period and submit progress reports on a quarterly Basis. Item No. Item Description Estimated Cost (KSh.)/Per Year 1. Water supply to areas affected by construction of the dam 30,000,000.00 a. Water Supply for Gathanji area 15,000,000.00 b. Water Supply for Kanyoni area 15,000,000.00 2. Fencing around the dam 12,000,000.00 Initial stage to include fencing of red zone areas - including areas near schools/ markets etc. 3. Source protection works/ conservation activities 18,000,000.00 Addressing pollution from Kirache market 4. Buffer zone acquisition 15,000,000.00 Initial acquisition of stage 1 buffer zone areas - areas affected by potential flood water within 1 year Total (KSh.) 75,000,000.00 JULIUS ITUNGA, MR/5164675 Ag. Chief Executive Officer.