I.        BACKGROUND AND RATIONALE

The Government of Rwanda has committed to achieve the Sustainable Development Goals (SDGs) and has national targets to reach 100% access to improved water by 2020 as well as higher levels of service embedded in the SDGs. This includes ensuring 100% access to at least basic water supply services and ensuring water supply is free from contamination. 

This increase in coverage and levels of service will be through more investment in new infrastructure as well as rehabilitation, and regular operations and maintenance of existing water supply infrastructure. To achieve the SDGs and NST1targets with sustainable water supply services, the participation and partnership of the private sector will be required.  Private operators are now contracted to manage rural water supply services by District governments.  Water supply systems are segregated into ‘Clusters’, grouping all services in a given geographic area.  There are 2-3 Clusters per district, with some Clusters overlapping more than one District. In Rwanda’s 27 rural districts, there are currently 45 Clusters managed by 33 private operators.  Remaining areas are anticipated to come under Cluster contract in 2018, bringing all rural areas under a cluster. For most clusters, the private operator contracts have been in place for less than one year. 

Rwanda Utilities Regulatory Authority (RURA) regulates water supply service provision in Rwanda, including the regulation of user tariff rates which are governed by an established tariff methodology developed and issued by the Regulatory Board of the RURA. The methodology clearly sets out the principles and procedures water service providers use to set tariffs.  

It is in this framework of fulfilling its mandate with regards to water regulation that RURA seeks support to determine rural water tariff setting methodology, and conduct   analysis of willingness and ability to pay (WTP/ATP) of rural households.  UNICEF has agreed to engage a consulting firm to support RURA to establish rural water tariff setting methodology and to conduct a nationwide survey to determine household affordability for rural water tariffs.