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Cost-benefit analysis of water projects in Kampala, Uganda

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​COWI provided the basis for lenders to decide on investing in water projects in Uganda.

COWI carried out an economic and financial analysis of the Ugandan National Water and Sewerage Corporation (NWSC) and a number of water projects in Kampala.

COWI carried out a cost-benefit analysis and developed a financial and economic model for the projects and for the water corporation, to create a sound basis for the lenders to make a decision on whether to finance the projects and the corporation.

Upgrading water production in Uganda
The water investment project aims to upgrade the existing water production, to restructure and rehabilitate the water distribution network and create new water supply systems, including a new water treatment plant in Kampala.

The European Investment Bank in cooperation with the Kreditanstalt für Wiederaufbau (KfW) and the Agence Francaise de Developpement (AfD), required COWI to asses the feasibility of the 210 million EUR project.

Financial and economic analysis
First, COWI performed an incremental and total financial and economic analysis of the impact of the project. This entailed an assessment of key parameters, on the basis of a review of assumptions and existing data.

Secondly, COWI undertook a financial sustainability assessment of the NWSC in the scenario that the projects were implemented.

Needs for investment
In the process COWI estimated the overall financial needs for investment and capital maintenance to achieve stable assets to provide for satisfactory levels of water and wastewater services.

COWI also assessed the level of tariffs in relation to provision of sustainable water and wastewater services in the entire NWSC service area.

LAST UPDATED: 15.02.2017