The purpose of this Consultancy was to assist in the successful implementation of the Sustainability Agreement by monitoring the improvement in the utility performance brought about by the development and commissioning of the new infrastructure, which included the development of new water supply sources. The services included extensive data collection, site visits and inspections of wastewater and water system components and the development of a system of performance indicators for assessing technical and operational performance in both the wastewater and the water sector. The performance indicator baseline values were calculated and 5-year targets were set.

The proposed performance indicators were structured into Indicators for Water Services, Indicators for Wastewater Services, Financial, Governance and Personnel Indicators. A three-tier structure consisting of data sheets, variable and performance indicators was developed for the evaluation of the indicators. Emphasis was given in developing a performance indicator system for which the calculation and target setting processes are clear and replicable.
The performance indicator target values were determined based on achieving Compact Agreement targets and through them a reasonable and sustainable improvement in utility performance within the 5 year Compact Agreement period. It was shown that fulfillment of the target for Non-Revenue Water reduction can be the corner stone of the utility’s sustainability approach and can provide the means, both in terms of water resources and finance, for attaining other targets set in the technical and operations fields. It was also shown through a simple but robust financial model that the projected income from the targeted reduction in NRW over a 5 year period can lead to considerable financial resources becoming available for NRW reduction activities over that period.

WAI provided the specialist financial input to the project. They were therefore responsible for the design and compilation of the financial indicators section in the Baseline Report. This involved in-depth assessment of financial statements and other financial information provided by LWSC staff. A financial model was also developed for the 5 years of the Compact Agreement that would inform assessment of financial sustainability as well as assist with analysis of indicators. The same role has continued into the annual audit phase of the project, with WAI carrying out the assessment of performance against financial indicators.

Client: Millennium Challenge Account Zambia Ltd
Duration: 2013-2018
Value: USD517 885
Country: Zambia