BWB losing 52% water,posts K26bn loss—report
The country’s five water boards continue to struggle financially with Blantyre Water Board (BWB) posting losses in excess of K26 billion in the 2023/24 fiscal year due to high non-revenue water, among others, according to a report.
The Malawi Government Annual Economic Report 2024 shows that out of the five water boards, BWB was the worst performer, posting a half-year loss of K7.1 billion in September 2023 while the 2023/24 fiscal year loss was estimated at K26.5 billion from K20.7 billion in the previous fiscal year.
Among other reasons, the report attributes the loss to the delayed 40 percent water tariff adjustment which resulted in forgone revenue and high level of non-billed water due to leakage or non-revenue water which is at 52 percent.
Reads part of the report: “The board’s worsening financial position in the year was largely on account of non-implementation of its budgeted 40 percent tariff adjustment.
“This resulted in foregone revenue of about K9 billion and increased cash-flow challenges.”
Meanwhile, National Water Resources Authority has said all the country’s water boards are on average experiencing a high non-revenue water ratio at 36.06 percent from 37.2 percent in 2023.
In an interview, Consumers Association of Malawi executive director John Kapito expressed dismay with the persistent leakage of water through broken and old pipes at BWB, which resulted in over half of its pumped water not being billed.
He said it will be difficult for the utility to generate revenue to efficiently operate while more than half of its pumped water is lost before official consumption points.
In a separate interview, Economics Association of Malawi acting president Bertha Bangara-Chikadza said most parastatals have been registering dismal performances in recent years.
Meanwhile, BWB spokesperson Evelyn Khonje has refuted rumours that the institution ‘secretly’ adjusted upwards water tariffs, saying it raised the tariffs on April 1 and that it does not plan to effect another hike this year.
Ministry of Water and Sanitation Principal Secretary Elias Chimulambe earlier confirmed approving water tariffs for BWB effective Apri 1 this year, adding that it is considering applications from other water utilities.
Water Services Association of Malawi president Francis Munthali, who is also Northern Region Water Board chief executive officer, said they expect the government to be through with the vetting process as soon as possible.
In its approved tariff framework, BWB announced a 40 percent increase from June 1 2023 and a further adjustment of 50 percent on October 1 2023 in line with given approvals.
It said there will be a further 10 percent rise in year two and three
