Strengthening Financial Sustainability through a Bulk Water Tariff Framework

The sustainability of SLWSC's bulk water supply operations requires a predictable and adequate revenue base to meet the costs associated with water production, treatment, transmission, energy, operations, maintenance and infrastructure lifecycle management. As SLWSC transitions from project implementation to the provision of bulk water services, the absence of an approved and cost-reflective bulk water tariff framework may constrain its ability to recover the efficient costs of service provision and maintain the financial resources required for reliable service delivery.

A clearly defined and cost-reflective bulk water tariff framework will provide a transparent basis for determining the price of bulk water supplied to off-takers, strengthen revenue predictability and support effective financial planning. It will also enhance SLWSC's financial sustainability and institutional capacity to meet its operational and maintenance obligations without excessive reliance on Government support.