WUC reports loss in two straight years

Water Utilities Corporation (WUC), the sole provider of water services has reported a net loss in two straight years, citing rising operational expenses when compared to revenue generated, a report released on Wednesday shows.

For the 2012/13 financial year, the water utility under Godfrey Mudanga made a loss a P191,1 million, a ‘positive’ development when compared to P541, 6 million loss of the same period a year before. WUC board chairperson Nozipho Mabe said rising costs related to water treatment and distribution put pressure on the already stretched resources of the parastatal. According to the company’s latest annual report, operational expenses totalled P1, 2 billion, an increase of 0, 1 billion over the 2011/12 reporting period.

However, the company’s revenue increased marginally, as a result of the takeover of water provisions from councils as per the water sector project which started in 2009. In a bid to improve efficiency, government has removed the functions of water provisions from water affairs department, leaving WUC as the only provider. The takeover also came with its own challenges for the loss making entity. Botswana Guardian understands that the utility has been forced to pump extra funds in the refurbishment of old water sources such as boreholes, which have been ‘neglected’ prior to the takeover. 

Minerals, energy and water resources minister Kitso Mokaila recently commissioned boreholes in Molepolole. Others are expected to follow suit in other villages. The P1500 standard fee, which government has set for new connections, has not come cheap. It is ‘highly’ subsidised resulting with the corporation losing millions of pula, said Mabe. WUC did not immediately state the number of connections they have carried out since the standard fee was implemented. WUC, which is currently struggling to provide adequate water to the country, is actively looking for cash in the open market to fund ongoing water supply projects. Mabe did not state the amount of cash they hope to raise.