URBAN WATER AND SEWERAGE AUTHORITY

PERFORMANCE INDICATORS: A: Technical Indicators (i) URBAN WATER AND SEWERAGE AUTHORITY ANNUAL PROGRESS REPORT (JULY 2007 TO JUNE 2008) FINANCIAL YEAR 2007/2008 Supply and Demand: (a) Estimated water demand (m 3 /annum): 10,800,000 (b) Quantity of water produced (m 3 /annum): 8,739,000m 3 (c) Total number of pumps available: 9 Number of pumps operating: 8 (d) Total length of water mains (km): 318.45 (ii) Production from various sources (in m 3 ): Names of Sources Mindu Reservoir Gravity Sources Total Design Capacity m 3 /d 24,000 6,000 30,000 Present Capacity m 3 /d 21,000 4,000 25,000 Production previous year 7,165,300 1,867,500 9,032,800 Production this year 7,028,750 1,710,250 8,739,000 (iii) Billed Water: (a) Quantity of billable water (m 3 /annum): 6,794,115.47m 3 (Billable water= water produced less leakage) (b) Actual quantity of water billed (m 3 /annum): 6,502,533.09 m 3 (c) Number of bills prepared: 191,191.*, dispatched: 183,456, paid: 146,234 (iv) Quality of Water Produced for the Financial Year 2008/2009 : Parameter ph Turbidity Total Dissolved Solids Chlorine Residual Chlorides Fluorides Iron Manganese Nitrates E-Coli 1

Unit (NTU) (mg/l) (mg/l) (mg/l) (mg/l) (mg/l) (mg/l) (mg/l) (nos/mil) Total no. of samples 837 800 655 880 134 11 113 113 113 514 tested No. of samples complied 837 751 655 880 134 11 105 104 113 285 (v) Quantity of chemicals consumed: Chemicals Coagulant (Alum) Algae floc 19S Calcium Hypochlorites Lime Magnafloc Soda Ash (kgs) Total (kgs) (kg) (kgs) (kgs) (litres) Quantity 42,889.5 1,000 86,954.5 1,275 - -- N.A. Total Cost (Tshs) 26,475,720.00 3,874,000.00 307,083,250.00 - - - 337,815,470.00 Energy Consumption (a) KWH consumed during the Financial Year 2007/2008 : 3,553,139 (b) Maximum KVA recorded during the Financial Year 2007/2008 : 2,153 (c) Other energy consumed during the Financial Year 2007/2008: 14,842 litres of petrol, 66,939 litres of diesel. B: Service Indicators (i) Average hours of service per day: 23.2 hours (ii) Proportion of consumers with 24 hours service in percentage: Estimated to be 51%. (iii) Number of new water customers was 850 and total number of customers todate is 18,891 (iv) Number of sewerage customers todate 747 (v) Number of new meters installed: 686: and total to date: 15,263: Working: 14,484: Not working: 779 (disconnected) (vi) Number of disconnections: 5,834: reconnections: 6,048: illegal connections: 23: meter bypass 83: (vii) Number of kiosks:- Total: 101: Working 92: Not working: 9 2

(viii) Cost of 20 litres Jerrycan: By vendors: 15Tshs. By Authority: 7.00 Tshs. (ix) No. of poor households identified to date: 830 (x) No. of poor households getting free water: 483 (of course water is paid for by MORUWASA) (xi) Distribution of connections Category Zones Domestic Institution Commercial Industries/Garages Total I 3,109 32 54 5 3,200 II 2,627 21 22 5 2,675 III 2,209 99 162 27 2,497 IV 2,631 32 96 32 2,791 V 1,750 70 91 1 1,912 VI 1,849 27 51 6 1,933 VII 3,672 152 52 7 3,883 Others - - - - - TOTAL 17,847 433 528 83 18,891 (xii) Total number of metered connections Category Domestic Institution Commercial Industries/ Garages Total Total 14,560 260 398 45 15,263 Working 13,784 260 398 42 14,484 3

(xiii) Number and percentage of population served: Category Institutional Household Yard tap Kiosk Total Total population - - - - 286,560 Population Served* 43,846 127,815 79,320 17,325 268,305 Percentage 15.3 44.6 27.7 6.3 94 * estimated figures (xiv) Sewerage Services Summary: (a) General: S/N Category Domestic Institution Commercial Industrial Total 1. Number of connection 568 39 140-747 2. Design Population - - - - - 3. Population served 3,976 3,900 840-8,716 4. Area coverage (%) 1.39 1.39 0.29-3.07 5. Bills distributed 5,443 334 1,220-6,997 6. Bills paid 3,273 184 914-4,371 7. Revenue collection 20,259,325.95 4,781,388.70 17,025,483.04-42,066,197.69 (b) (c) (d) Waste water quantity/quality: (i) Amount of waste water generated: 247,112.4m 3 /annum (ii) Capacity of treatment plant: 57,908m 3 ph DO (mg/l) BOD5 at 20 o C (mg/l) CoD (mg/l) Colour Heavy Metal (mg/l) (iii) Influent Quality 7.5 2.3 24.8 43.4 28.5 N.A. (iv) Effluent Quality 8.0 3.0 22.1 47.7 7.1 N.A. (v) No. of tests conducted for each parameter above: 48 (vi) No. of tests complied with standards for each parameter: 48 Total No. of pumps available: not applicable: No. of operational sewerage pumps: not applicable Total length of sewer 30.21 km: inspected 30.21 km; and flushed: 0.8 km (e) Number of Sewer blockages attended: 243 4

C: Efficiency Indicators (i) Unaccounted for water (%): 27.4 (UFW is composed of leakages, overflows, illegal connections, meter under registration, etc). (ii) Billing efficiency in (%): 95.7 (Actual quantity of water billed/quantity of billable water). (iii) Revenue Collection Efficiency (%): 99.8 (Revenue Collection Efficiency= Revenue collected annually/value of water billed annually) (iv) Metering ratio: 0.82 (Metering ratio = Metered connection/total number of connection) (v) Records of Leakage and Pipe Materials: Category G.S. Pipes Polyethy PVC Steel Cast Iron Ductile Others (mention) Number of Leakages 33 2,084 534 2 10 1 NIL Pipe breaks/km/annum 0.109 7.42 1.902 0.019 0.022 0.004 NIL (vi) No. of consumer complaints received on lack of water/low pressure: 528 (vii) No. of complaints received on water quality: 24 Meter problems: 752 (viii) No. of complaints received on sewerage issued: 1 (ix) No. of days used to attend major breakdowns in the Financial Year 2007/2008 (if any): 59 days (x) No. of days used to attend sewerage blockages/bursts: 75.1 days D: Financial Indicator (i) Total O&M costs (Tshs): 2,745,885,729.49 (Total O&M costs = total annually O&M expenditure plus Government subsidies on electricity and salaries) (ii) Operation expenditure as a % of overall expenditure: 28.44 5

(iii) Maintenance expenditure as a % of overall expenditure: 12.78 (iv) Total expenditure on O&M (for the Annual): 2,745,885,729.49 (v) Personnel expenditure as a percentage of annually revenue 32.14% (vi) Unit cost of water produced (Tshs/m 3 ) without depreciation: 314.21 (Total O&M Cost without depreciation/total production) (vii) Unit cost of water produced (Tshs/m 3 ) with depreciation: 394.43 (Total O&M Cost with depreciation/total production) (viii) Operating Ratio: 0.99:1 (Operating costs/operating Revenue) (ix) Accounts receivables (Financial Year 2007/2008): (1.53) (Accounts Receivable = Total arrears/average Quarterly billing) (x) Accounts payable period (Annual): (1.51) months (xi) Contribution to investment (%): (4.24) (xii) Actual Annual expenditure against budget (%): (99.43) (xiii) Current liquidity ratio: (3.35) (Current liquidity ratio = Current assets/current liabilities) (xiv) Total investment Government funded project (%): NIL Donor funded project (%): NIL UWSA funded project: Tshs. 164,914,000.00 (10.12%) E: Personnel Indicators 6

(i) Proportion of female employee (%): 20 (ii) Turnover per employee (%): NIL (iii) Proportion of vacant posts: 2.5 (iv) No. of employees per 1000 total water and sewerage connections: 8. (v) No. of employees per 1000 active water and sewerage connections: 9.2 (vi) Training costs as a % of total payroll: 3.9% F: General Indicators (i) No. of Board meetings held: Regular 4: Extraordinary: NIL (ii) No. of all Board Committees meetings held: 1 (iii) No. of Staff meetings held: 5 (iv) Any review of tariffs done (Yes/No) If yes give details of tariff structure and rates: NIL (v) Strategic Plan and Cost Recovery Plan in place (Yes/No): Yes (vi) OPRAS/Performance contract/client Service Charter in place and used (Yes/No): YES (vii) Financial, Purchase, Safety and Staff Regulation in place and used (Yes/No): Yes (viii) Scheme of Services in place and used: (Yes/No): Yes (ix) Training Policy in place and used: (Yes/No): Yes (x) No. of stakeholders meetings held: 2 (xi) Vehicle/1000 water and sewerage connection: 0.33 7

WATER QUALITY MONITORING REPORT OF ANNUAL 2007/2008 A. PHYSICAL AND CHEMICAL PARAMETER PARAMETER UNIT W.H.O GUIDLINE MINDU DAM MAMBOGO RIVER K/NYEMBE RIVER VITULI RIVER TW TW RW TW RW TW RW TW Ph 6.5---8.5 7.4 7.7 7.6 7.7 7.5 7.7 7.7 7.9 Colour 15 98.1 14.7 31.8 13.7 10.9 6.7 67.3 36.8 Turbidity NTU 5 12.6 1.8 19.5 6.9 15.2 4.9 40.5 16.5 Iron mg/l 1000 0.3 0.1 0.3 0.1 0.2 0.0 0.4 0.3 Manganese µs/cm 2200 0.3 0.1 0.2 0.1 0.2 0.1 0.3 0.2 Conductivity mg/l n.m 169.7 183.9 49.9 53.5 52.6 73.4 165.3 181.0 Nitrate mg/l 250 1.4 1.9 1.8 2.1 1.8 2.0 2.0 2.1 Nitrite mg/l n.m 0.004 0.004 0.006 0.006 0.004 0.007 0.008 0.009 Fluoride mg/l 250 - - - - - - - - Total D.S mg/l 100 78.1 85.0 22.6 24.5 24.2 33.5 76.0 83.0 Total Hardness mg/l 1.5 64.3 69.1 23.2 31.2 25.4 35.5 67.8 74.0 Calcium mg/l 15 33.2 38.4 13.1 15.8 12.6 18.1 35.8 43.7 Magnesium mg/l 0.3 31.1 30.7 10.2 15.4 12.9 17.4 32.0 30.2 Alkalinity mg// 0.1 75.9 71.6 25.5 22.4 21.7 19.2 73.4 64.7 Chlorides mg/l 0.3 10.2 13.5 4.8 6.3 5.0 7.1 7.8 11.3 Sulphate mg/l 200 0.0 2.2 0.3 1.1 0.5 2.0 5.4 3.0 Phosphate mg/l n.m 0.4 0.5 0.6 0.6 1.0 0.5 0.9 0.6 B BACTERIOLOGICAL WATER ANALYSIS PARAMETER UNIT W.H.O GUIDLINE MINDU DAM MAMBOGO RIVER K/NYEMBE RIVER VITULI RIVER RW TW RW TW RW TW RW TW Free chlorine mg/l 0.2-0.3-0.2-0.2-0.2 Total chlorine mg/l N.m - 0.4-0.3-0.3-0.3 Faecal No.of coliform c/100ml 0 5,400 0x10 117X10 0X10 72X10 0X10-0X10 8

(a) PERFORMANCE INDICATORS TECHNICAL INDICATORS AS AT JULY 2005 MOROGORO UWSA JUNE 2006 JUNE 2007 JUNE 2008 ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET * Installed water production capacity (m 3 /year) 9,855,000 10,402,500 10,800,000 10,800,000 10,800,000 10,800,000 10,800,000 * Average quantity of water produced (m 3 /year) 8,753,450 8,232,500 8,800,000 9,032,800 8,800,000 8,739,000 8,800,000 * Proportion of water produced to water demand (%) 80 81 80.4 82.5 80.4-80.4 * Average quantity of billable water (m 3 /year) 5,698,168 6,997,625 5,720,000 7,166,775 5,720,000 6,794,115.47 5,720,000 Quantity of Water Produced: * Total number of sampling stations 10 10 10 10 14 10 14 * Total no. of samples tested - E - Coli 480 520 480 392 672 514 672 - Turbidity 768 916 768 670 1,008 800 1,008 - Residual chlorine 768 1,368 768 698 1,008 880 1,008 - PH 768 916 768 670 1,008 837 1,008 - Conductivity 120 520 120 130 168 N.A* 168 - Chemical Parameters 168 240 168 170 228 484 228 * Proportion of samples met water quality N.A Not determined 9

(b) Standards (%) PERFORMANCE INDICATORS - E - Coli MOROGORO UWSA AS AT JUNE 2006 JUNE 2007 JUNE 2008 JULY 2005 ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET 100 100 100 73.2 100 55.45 100 - Turbidity 100 100 100 94.2 100 93.9 100 - Residual chlorine 100 100 100 95.8 100 100 100 - PH 100 100 100 99.1 100 100 100 - Conductivity 100 100 100 DNA 100 N.A* 100 - Chemical Parameters 95 100 100 100 100 100 100 * Estimated quantity of waste water produced (%) 139,810 7,002,760 152,768 218,141 165,862 247,112.4 174,592 Quality of (sewerage) effluent * Proportion of waste water treated against waste water produced (%) * Total no. of samples tested. 100 2 100 100 100 100 100 - BOD 5 at 20 0 C (mgo 2 /1) 48 48 48 48 48 48 72 - COD (as mgkmno 4 /1) 48 48 48 48 48 48 72 * Proportion samples met waste water quality standards (%) - BOD 5 at 20 0 75 100 100 100 100 100 100 C (mgo 2 /1) - COD (as mgkmno 4 /1) 100 100 100 100 100 100 100 SERVICE INDICATORS: * Proportional of population served with water (%) 76 80.75 76.5 82 77 94 78 * Water supply service Area coverage (%) 85 85 85 >85 >85 >85 >85 N.A Not determined 10

PERFORMANCE INDICATORS MOROGORO UWSA AS AT JUNE 2006 JUNE 2007 JUNE 2008 JULY 2005 ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET * Average hours of service per day 24 24 24 24 24 24 24 * Total No. of water connections 15,792 16,852 16,792 18,040 17,792 18,891 18,800 * No. of active water connections 12,640 13,606 13,500 14,756 14,500 16,365 16,000 * Write offs connections (nos) 1,500 0 1,500 463 1,000 300 500 * No. of new water connections at the end of the year 856 1,060 1,000 1,136 1,000 850 1008 * Total length of water mains and distribution (km) 250 270 252 272 254 318.45 >254 * Length of new water mains and distribution network (km) 0 20 2 5.15 2 46.45 >2 * Total No. of metered connections 14,494 13,968 16,742 14,469 17,792 15,263 18,800 * No. of active metered connections 11,592 12,681 13,500 14,045 14,500 14,484 16,000 * Total No. of public kiosks 101 108 100 99 100 101 95 * No. of active public kiosks 98 108 100 99 100 92 95 * Cost of 20 liter containers of water by UWSA 6/= 6/= 8/= 7 10/= 7/= 10/= * Cost of 20 liter container of water by vendor 20/= 20/= 20/= 15 15/= 15/= 15/= * No. of poor households receiving free water 431 830 480 483 490 483 * Sewerage service area coverage (%) 3.3 3.3 3.5 3.2* 3.8 3.07 4.0 * Sewerage service population coverage (%) 3.3 3.3 3.5 3.2 3.8 3.04 4.0 * Total No. of sewerage house connections 559 600 600 680 650 747 700 * No. of new sewerage connections at the end of the year 22 41 41 80 50 67 50 * Total Length of laterals and main sewers (km) 29.5 30 30 30.15 30.5 30.21 31 * Population increase. 11

PERFORMANCE INDICATORS MOROGORO UWSA AS AT JUNE 2006 JUNE 2007 JUNE 2008 JULY 2005 ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET * Length of new laterals laid and main sewers (km) 0.12 0.12 0.5 0.21 0.5 0.06 1 (c ) EFFICIENCY INDICATORS (d) * Billing efficiency (%) 94.5 92.4 95 87 96 95.7 >96 * Revenue collection efficiency (minus arrears) (%) from D.A 98.7 70 80 75 95.8 80 previous financial year * Revenue collection efficiency with arrears (%) 91.1 N.A 91 92.1 92 99.8 92.1 * Unaccounted for water (UFW) (%) 39.5 25.3 38 32.9 38 27.4 37 * Pipe breaks (leaks) per year per km of water pipes 3.4 9.2 <5 7.3 <5 1.58 <5 (breaks/km/year) * Response time of customer complaints 3 N.A 2 <2 <2 <2 <2 FINANCIAL INDICATORS * Unit costs of produced water without depreciation 251 N.A 250 233.95 300 314.21 <300 (Tshs/m 3 ) * Unit costs of produced water with depreciation (Tshs/m 3 ) 344 305.44 343 311.51 393 394.43 <400 * Working Ratio 0.99 0.95 0.99 0.90 N.A 0.81 * Operating Ratio 1.3 0.84 1.19 0.99 1.16 0:99:1 1.31 * Accounts Receivables (months) 1.97 1.88 2 1.2 2 1.53 <2 * Accounts Payable Period 37.7 1 31.5 1.6 24.5 1.51 21 * Current liquidity Ratio 4.20 2.22 4.50 3.07 5.0 3.35 >5.0 * Quick (acid test) Ratio 3.07 N.A >3.0 2.16 >3.0 N.A* >3.0 * Debt Service Ratio 0.16 N.A 0.16 NIL <0.16 N.A* <0.16 N.A Not Determined D.A = Data not Available 12

(e) PERFORMANCE INDICATORS MOROGORO UWSA AS AT JUNE 2006 JUNE 2007 JUNE 2008 JULY 2005 ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET * Debit Equity Ratio 0.012 N.A <0.012 0.85 <0.012 N.A* <0.012 * Total Assets Turnover 0.077 N.A >0.077 0.89 >0.077 N.A* >0.077 * Total Expenditure against Budget (%) 98 94.5 <100 81.4 <100 99.43 <100 * Operation expenditure as % of overall expenditure 73 26.6 65 32.44 65 28.44 65 * Maintenance expenditure as % of overall expenditure 24 12.3 >24 13.8 >24 12.78 >24 * Maintenance expenditure as % of Asset value 1.72 1.042 >1.72 1.0 >1.72 N.A* >1.72 * Energy bills payment (%) (Cat A) 100 100 100 100 100 100 100 * Energy cost per cubic meter of water produced (Tshs/m 3 ) 36.0 3.56 36.0 35.1 3.60 50.36 3.60 * % Contribution to investment 3 N.A 10 11.09 >10 10.12 >10 PERSONNEL INDICATORS * Personnel expenditure as % of annual revenue collected 26 26.34 <30 30 <30 32.14 <30 * Average Wages per Staff (Tsh/year) 2.8M 2,742,000 >2.8M 3.5 >2.8M 3.02M >2.8M * Total annual incentive package (%) 13.5 0.41 <20 30 <20 <20 <20 * Proportion of female employees (%) 21 20 >30 20 >30 20 >30 * Turnover per employee (%) 0 0 0 0 0 0 0 * Proportion of vacant posts (%) 0 0 0 1* 0 4* 0 * No. of employees per 1000 active (W&S) connections 11.8 10 11.1 9.68 10.3 9.2 9.3 * No. of employees per 1000 total (W&S) connections 9.5 8.8 8.97 8.28 8.5 8.0 8.0 * Training cost as a % of total payroll 25 12.9 >25 2.27 >25 3.9 >25 NS = No Sewerage System NA = Not Applicable (W&S) = Water and Sewerage *Four employees were dismissed due to misconduct. 13