Licensed Utilities

Licensed Utilities

According to Section 6 (1) of Water Supply Regulations, GN 90 of 2013, A Water Authority or Clustered Water Authority established in accordance with section 9 of the Water Supply and Sanitation Act, 2009 shall be categorized as follows:

  • Category AA: Those which meet all costs including investments.
  • Category A: Those which meet all operation and maintenance costs, depreciation and part of investment.
  • Category B: Those which can meet operation and maintenance costs except for plant electricity and personal emoluments for permanent employed staff.
  • Category C: Those which can meet operation and maintenance costs except for plant electricity, personnel emoluments, and part of maintenance costs.

The Water Authorities under category A, B and C shall be required to improve their performance to be measured according to the performance criteria prescribed in the Second Schedule and Memorandum of Understanding in order to qualify to a higher category.

It is mandatory for water supply and sanitation service providers, as categorized above, to obtain a licence from EWURA. Licenses issued by EWURA are categorized in three classes, which are Class I, Class II and Class III Licences. The classification criteria’s are as set out in detailed criteria for awarding Class I, II and III Licenses.

  • CLASS I: License which shall be issued to a licensee who has a financial, technical and managerial capability to operate a licensed facility and recover all costs of operation.
  • CLASS II: License which shall be issued to a licensee who has technical and managerial capability to operate a licensed facility and recover all costs of operation except part of its investment cost.
  • CLASS III: License which shall be issued to a licensee who still gets financial, managerial and technical support from the Government and partially recover its operational costs.

Water Authorities under Class II and III shall be required to improve their performance to be measured according to the classification criteria’s in order to qualify to a higher Class.