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New law to facilitate PPP in water service delivery

New law to facilitate PPP in water service delivery
President William Ruto signs county allocation of revenue bill. PHOTO/@StateHouseKenya/X
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President William Ruto has signed the Water (Amendment) Bill into law. Once operationalised the new law will empower the National Water Harvesting and Storage Authority and Water Works Development Agencies to engage in bulk water purchase agreements with investors under the Public-Private Partnerships Act provided that a national public water works is not transferable to a county government.

The amendments were introduced to create provisions that facilitate Public-Private Partnerships (PPPs) in water service delivery.

Under the new laws, the authority will also have powers to evaluate and approve water and sewerage tariffs, bulk water tariffs and approve the imposition of such tariffs in line with consumer protection standards for domestic, commercial and irrigation uses.

The amendments also provide that all bulk supply services that are primarily intended to supply water to a services provider in a county or counties, other than the county, in which the bulk water abstraction works are located shall be undertaken by waterworks development agencies established and licenced under the Act.

The amendments also allow the Cabinet Secretary at the time in charge of water services to make regulations prescribing the manner in which an application for a license for bulk water supply shall be made.

The presidential assent came after the parliamentary committee on Blue Economy and Irrigation approved the Bill after proposing and passing a number of amendments following concerns raised by various stakeholders.

The amendments are expected to enhance access to bulk water services and ensure greater economic efficiency and consumer protection under the guidance of the Water Services Regulatory Board (WASREB).

Regulatory framework

The new laws amending the 2016 Water Act further address the handover of completed waterworks to county governments or cross-county water service providers and operationalises the Water Tribunal whose members will be appointed by the Judicial Service Commission. The tribunal will handle any disputes arising from the implementation of the provisions within the Act.

Each water works will be licensed by the Regulatory Board with respect to the functions under the Act.

“The Regulatory Board shall, upon commencement of this Act and as may be necessary thereafter, and with the approval of the Cabinet Secretary, publish the standards and conditions for licensing of water works,” the Bill, now assented to, provides.

The law also prioritises the completion of waterworks projects, requiring contracting authorities to step in and complete stalled projects if private contractors fail to fulfil their obligations. This measure seeks to prevent the wastage of public funds and ensure timely delivery of water infrastructure.

The Water (Amendment) Act further addresses the handover of completed waterworks to county governments or cross-county water service providers.

The assent came after lawmakers approved the Bill that had been sponsored by Leader of Majority Kimani Ichung’wah.

The object of the Bill, as stated in its preamble, was to provide for PPP arrangements and for connected purposes.

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