Service: Financial Management/Management Consulting
Year: 2012 - 2013
Project: Tariff/Rate Study and Financial Management Services
Project Description: WUC is a parastatal organization, wholly owned by the Botswana Government. It was established in 1970 by an Act of Parliament (Laws of Botswana Cap 74:02) with a mandate to manage a single project for the supply and distribution of water in what was then called the Shashe Development Area. In the forty 44 years since its inception, its mandate has expanded to supplying potable water to all the urban centers and villages in the country, as well as managing wastewater under the Water Sector Reforms Program which effected in May 2009 and completed in April 2013. The program resulted from a study to rationalize the water sector in Botswana and ensure uniform service levels for all. Following the commencement of the implementation of the Water Sector Reforms Project, the Corporation's Client base has grown significantly from 80,000 at the beginning of the reforms in 2009 to just over 330,000 by March 2014. The Corporation presently supplies over 76 million cubic meters of potable water annually to its total Client base. With a property, plant and equipment value of over P5 billion ($500 million), the Corporation’s infrastructure includes nine dams: Gaborone, Nnywane, Bokaa, Shashe, Ntimbale, Letsibogo, Dikgatlhong, Lotsane, Thune as well as the North South Carrier Scheme which comprises a 360km long pipeline, water treatment plants and associated pump-stations. Additional dams, the Dikgatlhong, Thune and Lotsane are under construction.
IBS was engaged as a subcontractor to Paul Bender Consulting (PBC) to provide Consultancy services for the development of the National Tariff on Water and Wastewater and Financial Modeling, Analysis and Review for the Water Utilities Corporation. This tariff and financial study was to determine the financial requirements for WUC to operate on a financially stable and sustainable basis. To understand these requirements, a 10-year financial model was prepared incorporating key assumptions for revenues, recurring expenditures, capital budgets and financing requirements. A 10-year planning timeframe was used for this study because the requirements for long-term financial sustainability must include WUC’s operations once it has taken over all water and wastewater operations, in the 2014/15 financial year.
The work also included: developing demand and growth forecasts; Client demographic and use patterns; operating cost components and cost drivers; revenue and rate requirements; alternate rate modeling; and a review of operations to determine opportunity areas for business improvement and operational efficiency/improvement.
541611 Admin Mgmt. & Gen. Mgmt. Consulting Services
541990 All Other Professional, Scientific & Technical Services
541211 Certified Public Accountants
541219 Other Accounting Services
541618 Other Mgmt. Consulting Services
541690 Other Scientific & Technical Consulting Services
561110 Office Admin Services
561499 All Other Bus. Support Services
611430 Prof. & Mgmt. Dev. Training
Certified Small Disadvantaged Business (SBA-8a, DC, MD, VA, PA and NJ)
SBA 8(a) - Program Code/Case Number is 307466.
Certified Minority Business Enterprise
CAGE : 6VUR3; DUNS: 078664340
1627 K St, NW, Suite 500
Washington, DC 20006
13201 14th Street
Bowie, MD 20715