r - part - usaid
r - part - usaid
r - part - usaid
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At the "Lime of writing, WDA is estimated to have twenty<br />
drilling rigs in operating conditioz, and perhaps a further<br />
twenty which are not operational but axe considered repairable.<br />
Though many of these are old, and, in accounting terms, fully<br />
depreciat-d, thesa forty rigs represent an eventual capital<br />
replacaxtent cc's+ of at least ten million dollars. Assuming the<br />
drilling rates experienced by the project in the Central Range,<br />
with a euccese rate of only 50%, these rigs coula potentially<br />
construct 120 productfon wells each year, The direct costs<br />
involved would be approxi~tely VSS5.000.000 for the production<br />
wells, and an additional US$1.250,000 for the exploratory wells.<br />
The success rate would hopefully be much higher than 50%.<br />
This level of production would achieve the targets shown in<br />
Table 2.4.18 by WDA alone, not counting the additional wells<br />
constructed by the private sector. This level of production<br />
could be achieved, but given the present level of management<br />
expertise within WDA, and the complete lack of incentives<br />
provided to staff, it is unlikely to occur. In considering<br />
whether Somalia can afford such an extensive program of<br />
drilling, consideration should also be given to whether Somalia<br />
can afford not to have the water which it would praduce.<br />
4.4.2. Operation and Maintenance, and Well Revenues<br />
From the cost figures shown in section 4.3.4, the current<br />
government price for water appears to be adequate to recover all<br />
operation and maintenance costs. Xn order to recover the direct<br />
costs of corstruction, the price would need to be at least<br />
doubled. The revenues actually collected by WDA, however, fall<br />
a long way short of those predicted in this report. Many<br />
instances were found ohere village communities regularly<br />
purchased fuel on the "black marketH: for all practical<br />
pcrposes, these wells have been abandwnned by WDA. In many<br />
other areas, the practice seems to have been established that<br />
fuel delivered by WDA is wpurchased" by the local community, and<br />
this purchase price substitutes for the correct revenues due for<br />
e previous operating period, Given these widespread<br />
practices, the uperatian and maintenance costing analyses<br />
presented in this re<strong>part</strong> will not be especially useful,<br />
If, in fact, WDA is unable to enforce the correct pricing<br />
procedure for the sale of water, and cannot therefore recover<br />
anything like the total revenues due, then a case exists for an<br />
alternative approach to the administration of wells. This might<br />
involve some degree of privatization. Ownership could be<br />
transferred to the comnunity, w ith laws governing the obligation<br />
to provide access to water rsd maximum prices charged, Tne<br />
wells could be sold, Peasea, ox rented to the community.<br />
operation and maintenance suld then be the responsibility of<br />
the comunity, to contract .-ith the private sector, ox with WDA.