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Lagos plans competitive tariff policy on water

By BusinessNews Staff on April 13, 2014

The Lagos State Government is designing a tariff policy to enhance sustainable water supply in the state.

The new policy, according to the State governor, Mr. Babatunde Raji Fashola, would be acceptable to all stakeholders in the water services sector in the state.
Fashola, who spoke through his Deputy Chief of Staff , Mojisola Rhodes, at a Policy Makers’ workshop, organised by the Lagos State Water Regulatory Commission, on designing affordable tariffs for water supply and wastewater management services said different stakeholders in the water services sector have demanded a high degree of consensus in the determination of a tariff policy.

The governor said: “It is in view of this that this workshop is a welcome development as it provides a platform for Government Policy makers, Service Providers, Investors and even the consumers to discuss issues that are of interest to the various groups.”

He added that incorporating the objectives into a comprehensive tariff policy provides a foundation upon which the water services infrastructure can be developed in a sustainable and affordable manner.

The workshop, according to the governor, will also develop the key elements of a tariff policy that will create a conducive environment for growth and instill confidence in all stakeholders.

He said his administration, at inception, identified the need for availability of water supply and wastewater management service delivery as a key indicator of socio-economic development.
In pursuance of this objective, the state government was said to have developed a roadmap that included the development of necessary infrastructure, the enthronement of key governance structures and the promotion of private sector investment in water supply and wastewater management.

“What is now incontestable is the fact that the delivery of water supply services is a capital intensive and at the same time financially viable venture. We realise that unlike many other household commodities, a purely competitive market for potable water supply service delivery through a piped network cannot exist. Demand for potable water will most likely continue to outstrip supply. From the perspective of Government, private investment is necessary to drive the growth of the sector such that the sector is self-financing and therefore sustainable and enduring”, he said.

Executive secretary of the commission, Mrs. Tanwa Koya, had earlier stated that the commission was responsible for ensuring proper delivery of water supply and sewerage (waste water management services) in Lagos State. She called on stakeholders to make use of the commission’s website, toll free lines and complaints boxes, which were recently unveiled for further information.

[This Day]

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