Nwscstrategic PDF

NATIONAL WATER AND
SEWERAGE CORPORATION
Five Year Strategic Direction

20132018
NWSC Startegy bklt_2.indd 1
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NWSC SERVICE COVERAGE ACROSS UGANDA (2013)
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Contents
BOARD CHAIRMANS FOREWORD 4

MANAGING DIRECTORS MESSAGE 6
1
INTRODUCTION 8
NWSC VISION AND MISSION 10
POINT OF DEPARTURE STRATEGIC SWOT ANALYSIS 12
FIVE YEAR GOALS AND TARGETS 13
4.1
Goals and Targets 13
4.2
Key Assumptions 14
FIVE YEAR STRATEGIES AND KEY MILESTONES 15
5.1
Business Processes and Growth 16
5.2
Customer Perspective 21
5.3
Financial Perspective 22
5.4
Learning and People Perspective 24
IMPLEMENTATION STRATEGY, MONITORING AND EVALUATION 26
APPENDIX A: Schedule of Transfer of Urban Water Systems to NWSC
NWSC FIVE YEAR STRATEGIC DIRECTION (20132018)
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Board Chairmans Foreword

It gives me great pleasure to make some remarks regarding
the Five Year Strategic Direction that the National Water and
Sewerage Corporation (NWSC) envisages to take for the period
2013 to 2018. As a Board, our mandate includes among others;
overseeing the functionality and performance of the Corporation,
which is achieved through providing Strategic Direction and
ensuring that the Corporate Plan is adhered to, and monitored.
As a Board, we have reviewed the Five Year Strategic Direction,
and take pride in the context within which it has been formulated
for the following reasons:
a) Firstly, it is aligned to the NWSC Corporate Plan 2012
2015, and therefore does not in any way conflict with the
aspirations of the Plan.
Dr. Eng. Christopher Ebal
AG. BOARD CHAIRMAN
b) Secondly, it contextualises the NWSC futuristic goals

in a longer term perspective, which implies that the next
Corporate Planning cycle will seamlessly flow in tandem with
the Strategic Direction.
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c) Thirdly, it takes into account the strategic and dynamic
I wish to reiterate that, the National Water and Sewerage
overarching Government Policy direction of transforming
Corporations operations are cardinal to the achievement of the
the Ugandan economy from a peasantry to a modern and
Government programmes, and therefore, we as a Board welcome
prosperous economy, as enshrined within the National novelty and innovation at the tactical planning level of the
Development Plan and the Vision 2040.
Corporation.
d) Fourthly, it is also aligned to the ambitious, and achievable On behalf of the Board, I take this opportunity to thank
Urban Water Sector goal of achieving 100 % water coverage
management for coming up with this longterm outlook, and we
in the medium term through building of synergies via the
pledge our support to ensure its successful implementation.
expansion of the mandate of the Corporation to cover all the

Thank you
large Urban areas.

e) Lastly, the strategic Direction was formulated professionally
through a consultative process involving all stakeholders,
implying that the buyin process was comprehensively
addressed.
Dr. Eng. Christopher Ebal
Therefore, as a Board, we positively associate to the undertakings
AG. BOARD CHAIRMAN
and aspirations of the Strategic Direction which will witness the

Corporations proficient growth in its operations and geographical
expansion.
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Managing Directors Message

The NWSC Five Year Strategic Direction (20132018) comes at a
time when the Corporation is at cross roads with a good historical
performance record, but increasing demand for services across
the urban divide in Uganda.
As Albert Einstein said, the challenges we face today cannot be
solved at the same level of thinking we were at when they were
created. We therefore have to put on a new mind if we are to
succeed in our search for solutions. This statement summarises
the predicament of increasing expectations and demands that the
Corporation is currently faced with.
The Five Year Strategic Direction is therefore aimed at gearing the
Corporation for transformational changes in its operational and
geographical mandate.
In formulating the Strategic Direction, due cognisance was given
to the history of the Corporation that has defined its current status,
Dr. Eng. Silver Mugisha

MANAGING DIRECTOR
the existing NWSC Corporate Plan (20122015) aspirations and

the various stakeholder expectations, key among which are the
Government Policy expectations.
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In summary, the Five Year Strategic Direction is premised on
Therefore, the Corporation will explore different financing options
the four (4) perspectives of the Balance Score Card, namely:
to ensure that it fulfills the goals and objectives enshrined within
Business Process and Growth, Customer Perspective, Financial
the Five Year Strategy.
Perspective, and Learning and People Perspective.

In implementing the Five Year Strategy, the Corporation envisages
Key among the strategic focus areas will be increased coverage and
to enhance collaboration with various stakeholders in order
supply reliability, improved asset management aimed at tackling
to ensure harmony and effectiveness in the implementation
the current water losses, improved customer interface and delight
of its activities. Furthermore, the Corporation will monitor the
coupled with enhanced collaboration with stakeholders, increased
implementation of the Strategic Direction through a corporate
revenue growth and mobilization of resources for investment,
scorecard system coupled with an Annual Evaluation System.
improved staff capacity development and welfare, and enhanced

It is my strong conviction that these renewed efforts will bear fruits
research and innovation.
that will see the NWSC services grow in leaps and bounds.
It is envisaged that the Five Year Strategic Direction will be
operationalised and streamlined through the Corporations
Thank you
annual budget and respective Division Annual Plans and One

Minute Management Goals for the staff within the Divisions. The
activities of the Strategy will further be cascaded to the various
areas of operation in a bid to ensure collective responsibility
Dr. Eng. Silver Mugisha

MANAGING DIRECTOR
and effectiveness in the implementation of the strategies. This

will be undertaken through tactical Performance Improvement
Programmes (PIP), including the STEPUP90 Programme that
was launched recently.
As is always the case, growth and development comes at a cost.
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1.
Introduction
Overarching Government Policy
efficient management of water supply and waste water disposal
Currently, the overall Government Policy direction is guided
delivery. The NWSC, being a major player within the Water and
by three major Documents, namely: the National Strategic
Environment sector, therefore takes due cognizance of the above
Direction
mentioned Government Policy aspirations.
(NDP),
the
National
Resistance
activities in order to ensure longterm sustainability of service
Movement
Manifesto (20112016) and the Vision 2040. The common

aspiration of these key policy documents is to transform the
Ugandan society from a peasant to a modern and prosperous
country within 30 years. Within these policy Documents, it is
noted that the Water and Environment sectors are key drivers
to the transformation process. Underpinning the transformation
process is the desire by Ugandans to have world class
infrastructure services including clean, affordable and reliable
water services, among others. It is Governments objective to
ensure that the water resources are efficiently utilised, and all
steps are taken to effectively harness water (including rainfall)
for human and economic development purposes. Furthermore,
the discovery of oil in Uganda, coupled with the rapid
population growth and urbanization, call for the proactive and
National Water and Sewerage Corporation

The NWSC is a Public Utility Company and stateowned
Corporation whose mandate, as defined in the NWSC Act Section
5(1), is to operate and provide water and sewerage services in
areas entrusted to it on a sound commercial and viable basis.
Effective July 1st 2013, the Corporation operates within 28 Urban
Centres, with the addition of the towns of Kitgum, Pader, Mityana,
Kisoro and Nebbi.
Operational and Governance Framework

The NWSC governance and operational framework is based
on the Corporate Plan and the Performance Contract with the
Government of Uganda. Within the overall framework of the
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Corporate Plan and the Performance Contract with Government,

the NWSC has over the years adopted several high impact short
term performance improvement programmes. These have resulted
into significant structural, operational and financial improvements.
Context of the NWSC Five Year Strategic

Direction
Within the context of the overarching Government Policy, there
has arisen a need to redefine and contextualise the goals and
aspirations of the Corporation in a longer term perspective in
order to effectively contribute towards the longer term vision of
the Government. Some of the critical aspects relate to the need
for the rapid expansion in urban water coverage to reach 100
% by 2016, and the expansion of sewerage services in all areas
of NWSC operation. Furthermore, in accordance to the Urban
Water Sector reform agenda and the Government Manifesto,
The Corporation is envisaged to expand its mandate to cover all
major urban centers within Uganda in a bid to ensure accelerated
service delivery in the urban centers. The purpose of this Strategic
Document therefore, is to provide the Corporations outlook and
key strategic interventions for the next five years building upon the
Corporations existing Corporate Plan, and taking into account the
wider stakeholder expectations, policy directions and competitive
environment.
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2.
NWSC Vision and Mission

The NWSC corporate Vision is
To Be A Leading Water Utility In The World,

and the Mission is
To Provide Efficient And Cost Effective Water And

Sewerage Services Applying Innovative Managerial
Solutions To The Delight Of Our Customers.
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During the next five years, management hopes to contribute
five year period will be aligned to the four Themes of the Balance
towards this vision by focusing on the following key areas:
Scorecard, namely: Business Processes and Growth, Customer

Perspective, Financial Perspective, and Learning and People
Financial sustainability,
Perspective. This system strikes a balance between all aspects of

the Corporations business.
Infrastructure growth,
Increased coverage for water and sewerage services,
Learning and innovation,
Customer delight, and
Meeting stakeholder aspirations.
In pursuing the above key focus areas, the Corporation will
draw lessons and build on the past successes, and espouse the
elements of investment in infrastructure, provision of services
to the Urban poor, uplifting the profile and delivery of sewerage
services, undertaking of restructuring activities aimed at improving
efficiency through creating regional structures and enhancing
collaboration with various stakeholders in a bid to create synergies
for sustainable socioeconomic development and environmental
protection.
As an overall strategy, the activities to be undertaken during the
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3.
Point of Departure Strategic SWOT Analysis

This chapter analyses the situation of the NWSC and that of the external environment as of 2013, with the purpose of developing
viable strategies for the next five years.
Internal
Strengths
External
Weaknesses
Opportunities
1. Experience and track record

in implementing successful
internal reforms
1. Low water and sewerage service

coverage (about 75 % for water
and 6 % for sewerage)
1. Political stability
2. Competent and committed staff

complement able to multi-task
and work as a team
2. Inadequate infrastructure
resulting in limited supply
reliability in some Areas
3. Government support to the

Corporation
3. Existence of operational and

financial data spanning over
many years
3. High NRW (averaging at 34 %)
4. Good governance structures,

documented policies and
well established systems and
procedures
5. Inadequate mechanism for

effective credit management
4. High level of Arrears (Average 3

months debt age)
6. Inadequate Research and

Development (R&D)
5. Good customer focus

6. An established external services
unit, which has enhanced
NWSC image internationally
7. Low capacity to self-finance

major capital investments
8. Inadequate Asset management
system
9. Inadequate Management
Information Systems
10. Lack of an effective
communication strategy
11. Inadequate staff capacity
development strategy
2. An enabling legal, institutional

and policy framework
4. Support from Development

Partners
5. Rapid population, urbanization,
and economic growth
6. Good public image and good
will
7. Potential to diversify income
and financing sources
Threats
1. Unstable macroeconomic
environment
2. Adverse climatic change and
variability
3. Pollution and deteriorating
raw water sources due to poor
catchment management
4. Poor physical planning
5. Culture of water theft and
network vandalism
6. Counterfeit products in the
market
8. Availability of raw water

resources
9. Availability of advanced
technology options
10. Availability of skilled man
power in the labour market
11. Potential to increase
geographical coverage
12. Inadequate customer service

systems
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4.
Five Year Goals and Targets

4.1
Goals and Targets
The following strategic goals and targets were developed to capture the key
focus areas for the next five years and give the global picture of what the
Corporation intends to achieve.
1. Service Coverage

Carry out network expansion and intensification to increase service

coverage (people accessing NWSC services) from a current level of 75
% to 100 % and from 6 % to at least 30 %; for water and sewerage,
respectively.
2. Geographical Coverage (Increasing Services to More Small

Towns)

Ensure that NWSC services are extended from the current level of 28
towns to at least 80 towns of Uganda.
3. Capital Investment Efficiency

Ensure capital projects are implemented using least cost investment unit
costs to create maximum valueformoney.
4. Environmental Protection

Ensure that NWSC conforms to national laws, regulations and standards, in
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order to promote good environmental management practices
satisfied with NWSC services) from the current level of 86 %
and public health.
to at least 95 %.
5. Asset Management Efficiency
10. Business Process Reengineering
Reduce water losses from the current level of 34 % to less

than 25 % and enhance cost optimisation of operations.
implement strengthening measures through focus on cost

structure; technologies; staff welfare; research; training and
6. Working Capital Management

Reduce the debt age from the current level of 3 months
4.2
current level of about 90 days to 45 days.
In order to achieve these goals, the following key assumptions
Key Assumptions
are made:
Increase customers base from 317,000 connections to at

least 450,000 connections, increase the annual turnover
from UShs 168 billion currently to at least UShs 278 billion
and ensure that at least 50 % of the towns breakeven.
8. Water Production Capacity and Supply Reliability

development.
to less than 2 months, and reduce creditor days from the
7. Business Growth

Review business processes, structures and procedures and
Government and Donor funding is secured in time to finance

the planned capital projects
Stable macroeconomic environment
Political and social harmony in the Country
Government support and smooth takeover of new Towns
Increase water production capacity from the current level of
Climatic conditions will not adversely affect NWSC operations
about 250 million litres/day to at least 400 million litres/day
Government meets its bill payment obligations
and hence increase supply reliability to 24/7 in all towns
There will be no major changes in the National Water Policy
where NWSC operates.

9. Customer Satisfaction

Increase customer satisfaction index (proportion of customers
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5.
Five Year Strategies and Key Milestones
This Chapter outlines the fundamental strategies and key milestones

that the Corporation intends to implement in the next five years
in order to achieve the goals and targets setout in Chapter Four,
and taking into account the SWOT analysis in Chapter Three. The
strategies are broadly grouped under the four (4) perspectives of
the BSC framework, namely: Business Processes and Growth,
Customer Perspective, Financial Perspective, and Learning and
People Perspective. The Corporation has defined clear Strategic
Focus Areas under each perspective that will shape its strategic
direction. The implementation of the respective strategies and
milestone will be carried out by project teams led by the Division
indicated for each strategy.
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5.1
Business Processes and Growth
Strategic Focus Areas

a) Improved service reliability and coverage
b) Improved cost and operational efficiency
c)
Improved asset management
Strategies and Key Milestones
Kampala Water Lake Victoria Water and Sanitation Project (P&CD)
Package 1 and 3: Refurbishment of Gaba I and II and limited water network interventions
June 2015
Package 2: Water network modeling and master planning and rezoning and extension
December 2017
Package 4: Katosi water treatment plant
December 2016
Package 5: Improvement of water supply and sanitation in the informal settlements
December 2015
Package 6: Accompanying measures including asset management and capacity building
June 2014
Kampala Sanitation Programme (P&CD)

Lubigi sewer system
December 2013
Bugolobi waste water treatment plant
December 2015
Sewer network
December 2015
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Time Frame
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Uganda Water Development and Management Project (P&CD)
Time Frame
Gulu
February 2018
Bushenyi
December 2015
Arua
December 2015
Mbale
May 2017
Integrated Project to Improve Living Conditions in Gulu (IPILC) KfW Funded Project (P&CD)
South West Water and Sanitation Project (P&CD)

AfD funded project including Masaka and Mbarara
Feasibility studies, detailed design and commencement
June 2018
June 2018
New Intake for Soroti (P&CD)
November 2014
Buloba Water Supply Project (P&CD)
May 2014
Small Towns Water Rehabilitation and Expansion Programme to extend NWSC Services to at
June 2018
least 50 new towns of Uganda (P&CD)

9
Preparation of bankable project proposals for expanding water and sewerage infrastructure
June 2015
in priority towns: Kampala, Greater Bushenyi, Albertine region (Kasese, Fort Portal, Hoima),
Masindi, Lira, Lugazi, Jinja and new towns etc (P&CD)
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NonRevenue Water Reduction Initiatives: (Eng Services, P&CD)
Time Frame
Multistakeholder based illegal use reduction project
Establish hydraulic zones and District Meter Areas and roll out NRW reduction programme June 2015
June 2014
with performance accountability mechanisms

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Effective meter management policy and framework
Priority boosting and groundwater options
June 2014
Selected rationalization
June 2014
Systematic rationing
Continuous
Enhanced IT Solutions and Systems Applications (F&A)

Management reports and business intelligence
March 2014
Completion and roll out of inhouse billing system and integration with key applications
December 2014
Electronic archiving solution and document management/control
June 2015
Improved information security (Data recovery and business continuity) and offsite storage
June 2014
Automate and computerise operational processes
Continuous
Mobile office options and solutions
June 2014
Improved web based customer service options
June 2014
Operational ERP System
June 2018
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June 2014
Shortterm Innovative Dry Zone Interventions in Water Stressed Areas (Eng Services, KW)
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Establish a Comprehensive Asset Management System (Eng. Services, F&A)
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Time Frame
Asset management policy and strategy
December 2013
Updated ten year investment plan
June 2015
Annual asset replacement and disposal plans
Every September
Asset management Department/Unit
June 2014
Asset reevaluation
June 2015
Performance measurement system for asset management system
June 2014
Systematic standardization of assets
Continuous
Supply Chain Improvements (F&A)

Formulate a specifications manual
June 2014
Establish performance measurement framework for the supply chain processes
June 2014
Systematic development of lowcost local contractors
June 2014
Enhance capacity to effectively test and inspect delivered materials, goods and services
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Upscale Implementation of Propoor Services to other parts of Kampala and other towns
16
Institutionalise Water Safety Plans in all Areas including new towns and roll out an
March 2014
June 2016
(P&CD)
June 2015
Environmental Management System (Eng Services)

17
Develop and roll out a priority raw water source protection programme (Eng Services)
June 2015
18
Establish a Catchment Management Collaborative Framework with Stakeholders such as Local
June 2014
Governments, NEMA and DWRM (Eng Services)
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Promotion of Rain Water Harvesting in selected PeriUrban Areas as part of NWSC Corporate
Time Frame
Social Responsibility (Public Relations)
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Develop concept paper
June 2014
Roll out implementation of the selected initiatives
June 2015
Strengthened Internal Audit function and Improved Governance of Capital Projects (IA, P&CD)

Comprehensive annual audit plans for the entire corporation
Every July
Use of ICT in the audit processes
December 2014
Establish and roll out a framework for increased stakeholder involvement in project
March 2014
implementation, evaluation and audits

21
Establish Internal Service Standards (M&E, Top Mgmt)
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More Efficient Fleet Management Framework (Mgmt Services)
23
Use of ICT in fleet management
December 2014
Scope of fleet and acquistion plan
March 2014
Balance between leasing and ownership
March 2014
Risk Management (Eng Services, F&A)

Establish and rollout implementation of a Risk Management Policy and Strategy
December 2014
Customer Data Integrity Project (Comm & Cust Services)

Comprehensive data validation and data cleaning in all Towns including new Towns
December 2014
Upscale blockmapping to GIS for all Towns
June 2015
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June 2014

24
Establish measurable ervice Agreements between Departments
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5.2
Customer Perspective

a) Improved customer satisfaction
b) Enhanced collaboration with stakeholders
c)
Enhanced corporate social responsibility
Time Frame
Design and roll out an innovative corporate communication and public relations strategy
June 2014
(Mgmt Services)
Develop a strengthened Customer Relationship Management and Call Centre Strategy (Comm
June 2015
& Cust Services)

Establish a Comprehensive Stakeholders Engagement Agenda to guide NWSC collaboration
June 2014
with Sector Stakeholders to improve service delivery (All Divisions)
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5.3
Financial Perspective

a) Revenue growth
b) Cost optimization
c)
Mobilise financing for investment
Customer Base Growth to at least 450,000 Accounts:
Network extensions and intensification by at least 80km annually (Eng. Services)
Takeover of new towns at least 50 towns as indicated in Appendix A (Eng. Services)
Time Frame
June 2018
Bills collection and arrears reduction project (Comm & Cust Services)

Prepaid meter installation program (Lot 1)
June 2014
Prepaid meter installation program (Lot 2)
March 2015
BiAnnual Arrears reduction programmes
Every January & July
Roll out of more cost effective water treatment options (e.g. salt electrolysis, polymers, etc) in at June 2018
least 10 Areas annually (Eng Services) w.e.f. FY 20142015
Energy Optimization Programme (Eng Services).

Establish Area energy management teams with clear biannual TOR
July 2014
Undertake energy audits and implement energy efficiency management recommendations
Every July
in at least 10 towns annually

5
Investment Finance Mobilization from different Sources such as Debt factoring, Bonds,
Market Finance , Government, Development Partners and PPP (F&A Division)

Develop concept note on finance mobilization
June 2014
Mobilization of finances
June 2016
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Time Frame
Establishment of a Water Fund (WF) to contribute towards Capital development projects,

including review of the new connection policy (F&A Division)
Develop concept note on Water Fund
June 2014
Creation of Water Fund
June 2015
Review New Connection Policy
June 2014
Establishment of NWSC Business Subsidiaries for business diversification and foreign

exchange earnings (IDES)

Develop concept note on the business subsidiaries
June 2014
Transform IREC into a fullyfledged profit center semi autonomous with expanded scope
December 2014
of products and services.

8
Develop concept note on NWSC Construction/Contracting Unit
December 2014
Enhance NWSC Tariff (Comm & Cust Services)

Review the recommendations of the tariff review study report
December 2013
Roll out implementation of agreed recommendations
March 2014
Establish mechanisms for charging customers within NWSC service area with alternative
June 2014
water sources (boreholes)

9
10
11
Implementation of the Bottled Water Project (P&CD)

Approval of the feasibility study report by the Board
December 2013
Secure funding
December 2014
Commission project
June 2016
Biannual Creditors Management Programmes to ensure that all Procurements are
Every January & July
harmonised with cash flows (F&A Division).
2013
NonCore Assets Review Programme to reduce operating costs and enhance cash flow and
December 2013
income generation potential (Mgmt Services).

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5.4
Learning and People Perspective

a) Improved welfare and staff motivation
b) Staff capacity development and empowerment
c)
Foster research and innovation
Review of NWSC Structure and Reorganizing of NWSC Operations for Efficient Service
Time Frame
Delivery and Effective Outreach

Approved Restructuring Programme (HR, Mgmt Services)
March 2014
Approved Road map for regionalization (Eng Services, IDES)
June 2014
Review and rationalise staff related costs and redeployment (HR, Mgmt Services)
June 2014
Enhance staff performance accountability through a robust and quantifiable productivity
June 2014
measurement system for teams and individual staff (IDES, HR)

4
Innovative staff welfare and incentive with a view to improve staff morale and retention (HR)

Matching funds strategy
June 2014
Revolving low interest loan scheme
June 2014
Housing scheme for deserving long service staff
Elevate the Profile for Sewerage Services Managment within NWSC (Eng Services, Mgmt
June 2014
December 2015
Services)
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#
6
Time Frame
Improved Working Conditions and Environment for Staff (P&CD, HR)

Approved Occupational Health and Safety Policy with annual M&E framework
June 2014
Construction of a modern NWSC Headquarter Complex, with clear business objectives in
June 2018
mind
10
Improvement of other selected NWSC offices
June 2017
Improvement of staff quarters in selected areas
June 2016
Robust Research and Development Framework (IDES)

Establishment of an Incubation System policy development, review and strengthening
June 2014
Research policy and strategy
December 2013
Research agenda
March 2014
Innovation policy and strategy
December 2013
Strengthen and Streamline Training (IDES, HR)

Comprehensive annual training calendar and programmes
Every June
Operationalise the Gaba vocational training centre
December 2013
Establish the Kachung vocational training centre
June 2015
Predictive HR Management and Succession Planning (HR)

Develop a talent management and succession policy
June 2014
Establish a framework for career development and growth path
December 2014
Establish a predictive HR Management framework
December 2014
Annual Staff Satisfaction Surveys (HR)
Every June
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6.
Implementation Strategy, Monitoring and Evaluation
Implementation Strategy
to realise its goals and objectives over the next five years. As a
The Strategic Direction will in the first two years correspond to
cover its Operation and Maintenance, and Capital Investment
the current NWSC Corporate Plan for the period 20122015.
costs. In a strict sense, all operation and maintenance costs,
The activities will therefore be undertaken in line with the existing
plus minor investments will be covered from internally generated
Corporate Plan aspirations. The later three years of the Strategic
sources. On the other hand, the Corporation will mobilise funds
Direction will guide the preparation of the NWSC Corporate Plan
for major capital investments using various financing options.
for the period, 20152018. As a means of operationalizing
These will include the options of market finance, concessionary
the Strategic Direction, each Division will be responsible for
loan financing, PPP arrangements, and Grants from Development
formulating strategies to achieve the key strategic activities and
Partners and Government, among others.
strategy, the Corporation will use a mix of financing options to
milestones enshrined within the Strategic Direction. These will

be streamlined through the Corporations annual budget, and
The source of finance to be used will depend on the rate of return
respective individual annual Divisions Plans and the One Minute
anticipated from the project. Where projects will drive returns
Management goals for the staff within the Divisions. The activities
commensurate with commercial capital costs, commercial
of the plan will furthermore cascade downwards to the various
finance will be mobilised to fast track those investments. Such
Areas in a bid to ensure effective implementation of the strategies.
investments include the rationalization of high cost infrastructure

(e.g. replacement of old and inefficient electromechanical
Financing Strategy
equipment, etc) and investments that yield high marginal revenues

at a relatively low marginal cost (e.g. network infilling where bulk
The NWSC will require considerable resources in order to be able

26
capacity is sufficient). On the other hand, new investments such
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as the construction of new water treatment plants and sanitation
Over the next five years, the Corporation is envisaged to grow its
facilities, plus investments of social nature (nonviable), will still
income from UShs 183 billion to UShs 277 billion an annual
require support from Government and Development Partners.
growth of about 12 % per annum. This will be underscored by an
Table 1 below summarises the NWSC cash flow and investment
achievement of an operating profit of UShs 60 billion by 2018.
needs over the next five years.
On the other hand, the investment needs over the next five years
Table 1: NWSC simplified cash flow and investment needs (UShs millions).
Year
20132014 20142015
20152016
20162017
20172018
Total
Total Income
183,296
201,234
221,357
247,920
277,671
1,131,478
Total O&M Expenses
142,260
156,486
172,134
189,348
208,282
868,510
Investment needs
200,000
232,200
235,800
248,400
210,610
1,127,010
30,000
35,000
40,000
40,000
50,000
195,000
170,000
197,200
195,800
208,400
160,610
932,010
Investment from internal Sources

Financing Gap
Notes: Income to grow at a rate of 12 % per annum, while operating expenditure is envisaged to grow at a rate of 10 % per annum.
Table 2: Cash flow for Projects that have already secured funding (UShs millions).
Source of Funding
20132014
20142015
20152016
Total Donor Funding
180,659
176,299
205,884
195,671
GoU (Kampala Sanitation Project)
33,029
32,136
31,630
19,556
GoU (KW LV WatSan Project)
10,874
14,986
18,249
21,736
18,564
1,188
GoU (UWMDP)
20162017 20172018
155,425
20182019
9,619
Total GoU Contribution
43,903
47,121
49,879
41,292
18,564
1,188
Total NWSC Contribution
15,035
17,496
20,622
19,203
9,456
509
27
21/11/2013 16:46
will amount to UShs 1.13 trillion, an average of UShs 225 billion
Corporations interface with its stakeholders. Key among the
per annum, covering the towns of Mbarara, Bushenyi, Masaka,
tenets for this collaboration will be an open and focused dialogue
Hoima, Fort Portal, Kasese, Jinja, Tororo, Lira, Kisoro, Mityana,
with stakeholders, building synergies, improving effectiveness of
Kitgum, and Nebbi. Of this, the NWSC will contribute about UShs
the Corporations activities, increasing stakeholder buyin of the
195 billion from its internal sources, an average of UShs 39 billion
activities of the Corporation, promoting transparency, effective
per annum, and the balance will be sought from other sources. It
communication, and value adding engagements. In carrying out
should be noted that these investment needs are over and above these activities, the Corporation will enhance its accountability to
the ongoing projects which cover the towns of Kampala, Gulu,
Arua, Mbale and Bushenyi as shown in Table above.
Stakeholder Engagement
its various stakeholders.
Monitoring and Evaluation

In order to ensure effective implementation of the Strategic
The aspiration for Stakeholder Management is a commitment of
Direction, the Corporation will introduce a corporate scorecard
the Corporation to meet the needs and surpass the expectations
coupled with an Annual Evaluation System to monitor progress
of its various stakeholders. The Management of stakeholders
made in the implementation of the Strategic Direction. The
refers to the ability to assess the needs, plan for and implement
proposed scorecard will greatly contribute to setting targets and
activities geared towards addressing the needs of the different
performance criteria within the annual Corporate budget and
partners in service. It should be noted that it is through proper
respective annual Divisions Plans and monitoring progress made
stakeholder management that an organization is able to balance
by the Corporation in achievement of the set targets.
its stakeholder needs and achieve predictable and value for

money services. The stakeholders the Corporation envisages to
work with include the Customers, Government and all its partner
institutions, the Development Partners, NGOs, CBOs, media and
the civil society, among others. Implementation of stakeholder
management activities will be promoted at all levels of the
28
Management will conduct annual evaluation of the Strategic

Direction and assess progress in implementing the Plan and
including proposing any necessary adjustments. While the main
strategic thrusts of the Strategic Direction are not expected
to change significantly from year to year, some refinements in
21/11/2013 16:46
timeframe and approaches may be necessary in the light of

internal and external eventualities. In year five of the Strategic
Direction, a more exhaustive review will be undertaken as an
input into the preparation of the next five year Strategic Direction.
29
21/11/2013 16:46
APPENDIX A: Schedule of Transfer of Urban Water Systems to NWSC

Year 1 FY 20132014
Year 2 FY 20142015
Year 4 FY 20162017
Wakiso
Kakiri
Mpigi
Wobulenzi/Katikamu
Kayunga
Kinoni/Kyazanga/Mbirizi
Luwero
Lukaya
Kotido
Kigumba
Buwama/Kayabwe/Kyabadaza
Adjumani
Bweyale
Kagoma/Buwenge
Kamdini
Kiboga
Kabwohe/Itendero
Amolatar
Sironko/Bulegemi
Pakwach
Bwera/Mpondwe
Muyembe
Kibaale
Hima/Rwimi
Budadiri
Butaleja/Busolwe
RubiriziBunyaruguru
Mayuge
Budaka/Tirinyi
Muhanga
Paidha
Pallisa
Aduku
Busia
Year 5 FY 20172018
Apac
Ngora/Nyero/Kumi
All Towns situated on the following highways:
Lyantonde/Katovu
Kamuli
Kampala Mbale
Ibanda
Moroto
Kampala Kabale
Rukungiri
Bugiri
Kampala Gulu
Kalisizo
Koboko
Mbale Lira
Ntungamo
Dokolo
KihihiKanyampangaKateera
KatweKabatoro
KambugaButogotaKanungu regional Kapchorwa

Sembabule
water system.
Kyotera
30
21/11/2013 16:46
21/11/2013 16:46
National Water and Sewerage Corporation

Head Office: Plot 39, Jinja Road
P. O. Box 7053 Kampala, Uganda
Tel. +256 414 315 100, +256 414 345 299
E-mail: info@nwsc.co.ug
www.nwsc.co.ug
21/11/2013 16:46

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NATIONAL WATER AND

Five Year Strategic Direction

NWSC Startegy bklt_2.indd 1

NWSC SERVICE COVERAGE ACROSS UGANDA (2013)

NWSC Startegy bklt_2.indd 2

BOARD CHAIRMANS FOREWORD 4

NWSC VISION AND MISSION 10

POINT OF DEPARTURE STRATEGIC SWOT ANALYSIS 12

FIVE YEAR GOALS AND TARGETS 13

Goals and Targets 13

FIVE YEAR STRATEGIES AND KEY MILESTONES 15

Business Processes and Growth 16

Learning and People Perspective 24

IMPLEMENTATION STRATEGY, MONITORING AND EVALUATION 26

APPENDIX A: Schedule of Transfer of Urban Water Systems to NWSC

NWSC FIVE YEAR STRATEGIC DIRECTION (20132018)

NWSC Startegy bklt_2.indd 3

Board Chairmans Foreword

b) Secondly, it contextualises the NWSC futuristic goals

NWSC Startegy bklt_2.indd 4

NWSC FIVE YEAR STRATEGIC DIRECTION (20132018)

c) Thirdly, it takes into account the strategic and dynamic

I wish to reiterate that, the National Water and Sewerage

overarching Government Policy direction of transforming

Corporations operations are cardinal to the achievement of the

the Ugandan economy from a peasantry to a modern and

Government programmes, and therefore, we as a Board welcome

management for coming up with this longterm outlook, and we

in the medium term through building of synergies via the

pledge our support to ensure its successful implementation.

expansion of the mandate of the Corporation to cover all the

large Urban areas.

Dr. Eng. Christopher Ebal

Therefore, as a Board, we positively associate to the undertakings

AG. BOARD CHAIRMAN

and aspirations of the Strategic Direction which will witness the

NWSC FIVE YEAR STRATEGIC DIRECTION (20132018)

NWSC Startegy bklt_2.indd 5

Managing Directors Message

Dr. Eng. Silver Mugisha

the existing NWSC Corporate Plan (20122015) aspirations and

NWSC Startegy bklt_2.indd 6

NWSC FIVE YEAR STRATEGIC DIRECTION (20132018)

In summary, the Five Year Strategic Direction is premised on

Therefore, the Corporation will explore different financing options

the four (4) perspectives of the Balance Score Card, namely:

to ensure that it fulfills the goals and objectives enshrined within

Business Process and Growth, Customer Perspective, Financial

the Five Year Strategy.

Perspective, and Learning and People Perspective.

to enhance collaboration with various stakeholders in order

supply reliability, improved asset management aimed at tackling

to ensure harmony and effectiveness in the implementation

the current water losses, improved customer interface and delight

of its activities. Furthermore, the Corporation will monitor the

coupled with enhanced collaboration with stakeholders, increased

implementation of the Strategic Direction through a corporate

revenue growth and mobilization of resources for investment,

scorecard system coupled with an Annual Evaluation System.