Water corporatisation to bring efficiency
Tuesday September 04, 2007

The corporatisation of the Water Authority of Fiji will maximize efficiency and effectiveness of service delivery to the public, promises the interim Public Sector Reforms Minister Poseci Bune.

Bune’s promise follows moves by his ministry to corporatise the entity by declaring it a “Commercial Statutory Authority” under the 1996 Public Enterprises Act.

Also responding to concerns by non-governmental organisations (NGO) that corporatisation would mean increased water charges for consumers Bune said, “Government will ensure that tariffs will not be increased”.

“However, Government expects the new Water Authority of Fiji to review tariffs for commercial and high volume users at some stage, but, this will happen three or four years after the Authority has been up and running,” he said.

Bune said that during its operation, the income derived from the Authority would go towards upgrading its infrastructure and maintenance works in order to maximize efficiency and effectiveness of service delivery to the public at large.

“NGO’s and other critics of the proposed corporatisation of the Water and Sewerage Department should not ignore the fact that the Charter Administration Committee had carried out extensive consultations with the members of the public through public meetings in 2006 and it was only after their concerns had been thoroughly and satisfactorily addressed that the government decided to go ahead with the reform.

President Ratu Josefa Iloilo last week gazetted the Water Authority of Fiji Act following its promulgation.

Bune said the commencement date of the Authority under the Act would be decided sometime soon.

He added that the Charter Administration Committee appointed last year, comprising representatives of the state and the private sector, would now implement “the finer details” of the “Cabinet-endorsed” Water Charter.

He said this involves the transfer of staff, assets and functions of the Water and Sewerage Department to the new Authority, although the Authority’s regulatory function will remain with the Public Utilities ministry.

“These transitional arrangements will be managed by the Committee in close consultation with the Water Authority of Fiji Board and key government Ministries,” Bune said.

He said the government has agreed that the corporatised entity will be funded with a one-line grant from Government for a three-year transitional period of 2008 to 2010.