PROJECT DESCRIPTION

The Rwanda Utilities Regulatory Agency (RURA) was established in September-2001 to regulate licensed activities in the following sectors: telecom, electricity, gas, water, wastes management, and transport. It has the mandate to license operators in these sectors, regulate their tariffs, and monitor their activities. It is also charged with the responsibility of protecting consumer interests and facilitating competitive private sector participation in these sectors. In August 2003, the Government of Rwanda entered into a 5-year management contract with a consortium led by Lahmeyer International for the management of Electrogaz, the vertically integrated electricity and water national utility. As spelt out in the above mentioned contract, RURA has been entrusted with the responsibility of monitoring the contract, assessment of periodic reviews of tariff as well as tariff adjustments requested by the operator, etc. Moreover, the Management Contract gives the operator a mandate to conduct a tariff study of electricity and water services within the first year of his operations. The purpose of the project was to help RURA in assessing a series of tariff studies conducted by the operator and to advise on an appropriate investment plan with associated new tariff levels and structures for water and electricity services, particularly in the light of the recent acquisitions of new diesel generating capacity and oil price increases.