Politics keeps funds flowing down the drain

Political interference may scare potential investors from the water sector despite the urgent need to address the crisis currently facing the country.

Plans by the Athi Water Service Board (AWSB), which oversees supply of water to Nairobi and its environs, to engage private players in the construction of two critical water reservoirs, Gatamayu Dam and Maragua Dam, may come a cropper if the current wrangling between the Nairobi Water and Sewerage Company (NCWSC) and the Ministry of Water and Nairobi City Council (NCC) persists.

Board dissolved

AWSB plans to increase the two dams’ water intake and storage capacity within the next 36 months to in response to the acute water problems currently being experienced in the country.

However, Water minister Charity Ngilu’s recent order to dissolve the independent NWSC may send the wrong signal to potential investors.

The NCWSC board is made up of eleven members, six members of whom are from private organisations including ICPAK, Plan International, AMREF, KAHC and Catholic Peace and Justice. The board will meet on Friday, 7th August, to dissolve itself.

Members are expected to step down rather than engage in a fight with the ministry and the council in a bid to safeguard both their own reputations and those of their organisations.

“Most likely we shall go home,” the chairman of the board, Mr. Titus Ruhiu said.

Water demand continues to grow and is expected to peak at over one million cubic meters per day by the year 2030.

Acute shortfall

The current estimated demand for water in Nairobi is 750, 000 cubic meters per day while AWSB is currently producing 460,000 cubic meters for a shortfall of about 300,000 cubic meters per day.

“In order to bridge the current shortfall and meet the expected future needs we need to urgently undertake development of new facilities”, says AWSB in its expression of interest.

AWSB intends to engage the private sector through a Private-Public Partnership (PPP) that would see the private sector invest an estimated half a billion dollars in the two reservoirs.

The dams are to be constructed on a Build-Transfer basis.

According to the terms of engagement, the Athi board expects firms bidding for the dams to inject US$100 million (Kshs 7.6 billion) and US$400 million (Kshs 30.4 billion) into Gatamayu and Maragua respectively.