Energy and Water Utilities Regulatory Authority Strategic Plan for 2017/18 - 2021/22

1.1. Background ........................................................................................................................................ 4

1.2. The Planning Process ........................................................................................................................ 4

1.2.1. Recent Initiatives: Achievements and Challenges............................................................ 6

1.2.2. National and International Planning Frameworks ............................................................. 6

1.2.3. Stakeholders’ Analysis ......................................................................................................... 6

1.2.4. Internal Organizational Scan ............................................................................................... 6

1.2.5. External Trend Analysis ........................................................................................................ 7

1.2.6. Critical Issues ........................................................................................................................ 8

1.3. The Vision and Mission Statements, Core Values, Strategic Objective, Strategies, Targets and Outcome Indicators ...................................................................................................... 8

1.3.1. Core Values ........................................................................................................................... 8

1.3.2. Vision ..................................................................................................................................... 8

1.3.3. Mission .................................................................................................................................. 8

1.3.4. Strategic Objectives (SOs) ................................................................................................... 8

1.3.5. Strategies .............................................................................................................................. 8

1.3.6. Targets ................................................................................................................................... 8

1.3.7. Outcome Indicators ............................................................................................................. 8

1.4. Contents of This Plan ........................................................................................................................ 9 CHAPTER II : SITUATION ANALYSIS ...................................................................................... 10

2.1 Introduction...................................................................................................................................... 10

2.2 Legal Framework ............................................................................................................................ 10

2.3 Functions of the Authority .............................................................................................................. 10

2.4 Governance and Organizational Structure .................................................................................... 11

2.5 Staffing.............................................................................................................................................. 11

2.6 Funding ............................................................................................................................................ 12

2.7 Review of EWURA’s Performance ................................................................................................... 13

2.7.1 Review of EWURA’s Performance Since Inception (2006-2016) ...................................... 13

2.7.2 Review of Performance of the Strategic Plan 2012/13-2016/17 ..................................... 18

2.7.3 Challenges .......................................................................................................................... 18

2.7.4 Key lessons learned............................................................................................................ 19 - iv - STRATEGIC PLAN FOR 2017/18 - 2021/22

2.8 Recent Initiatives and Emerging Issues: Achievements and Challenges.................................... 19

2.9 Stakeholder’s Analysis ..................................................................................................................... 22

2.9.1 Stakeholders’ Analysis Using Clients’ Perception Surveys ............................................. 26

2.10 Organizational Scan ........................................................................................................................ 30

2.10.1 Internal scan (Strengths and Areas for Improvement)..................................................... 30

2.10.2 External Trend Analysis (Opportunities and Challenges) ............................................... 35

2.11 National Planning Frameworks....................................................................................................... 37

2.12 The Critical Issues ............................................................................................................................ 38 CHAPTER III : THE PLAN ....................................................................................................... 40

3.1 Introduction...................................................................................................................................... 40

3.2 Core Values ...................................................................................................................................... 40

3.3 Vision ................................................................................................................................................ 41

3.4 Mission.............................................................................................................................................. 41

3.5 Motto ................................................................................................................................................ 41

3.6 Rationale for Strategic Plan ............................................................................................................ 41

3.7 Strategic Objectives, Implementation Strategies and Expected Outputs ................................. 42 CHAPTER IV : MONITORING AND EVALUATION FRAMEWORK .......................................... 48 CHAPTER V : FINANCING PLAN ........................................................................................... 49 CHAPTER VI : FORCE FIELD ANALYSIS ................................................................................. 51 CHAPTER VII : QUICK-WINS .................................................................................................. 53 APPENDICES .......................................................................................................................... 55 APPENDIX 1 : EWURA’s MEDIUM TERM STRATEGIC MATRIX 2017/18-2021/22 ................. 56 APPENDIX 2 : EWURA’s RESULTS MATRIX FOR THE STRATEGIC PLAN (2017/18-2021/22) .................................................................................................................. 89 APPENDIX 3 : COST PROJECTIONS FOR EWURA’S FIVE YEAR STRATEGIC PLAN (2017/18-2021/22) ....................................................................................................... 99 - v - STRATEGIC PLAN FOR 2017/18 - 2021/22 LIST OF TABLES Table 1: EWURA’s Staffing Level by December 2016 .............................................................................. 12 Table 2: Revenue and Expenditure Trend (2012/13-2015/16) ................................................................ 12 Table 3: Licencing Status for Water Supply and Sanitation Authorities ................................................ 16 Table 4: Status of Complaints Resolution ................................................................................................ 17 Table 5: Assessment of Previous Strategic Plan ...................................................................................... 18 Table 6: Recent Initiatives, Achievements and Challenges .................................................................... 20 Table 7: Stakeholders’ Analysis Using Mind-Works Box......................................................................... 22 Table 8: Stakeholders’ Analysis on Satisfaction Level............................................................................. 27 Table 9: Stakeholders’ Analysis on Suggested Areas of Improvement................................................. 28 Table 10: Core Values ................................................................................................................................ 40 Table 11: Summary of Projected Revenue and Expenditure for 2017/18-2021/22 ............................... 49 Table 12: Projected Balance Sheet of Financial Position for 2017/18 - 2021/22 ................................... 50 Table 13: Supporting Forces (Bridges) ..................................................................................................... 51 Table 14: Restraining Forces (Barriers) ..................................................................................................... 52 LIST OF FIGURES Figure 1: Steps in Reviewing the Strategic Plan........................................................................................ 5 Figure 2: The European Foundation for Quality Management (EFQM) Excellence Model .................. 7 Figure 3: External Trends Analysis .............................................................................................................. 7 Figure 4: EWURA’s Organization Structure .............................................................................................. 11 Figure 5: EWURA’s Revenue and Expenditure Trend (2012/13 - 2015/16) ............................................ 13 - vi - STRATEGIC PLAN FOR 2017/18 - 2021/22 LIST OF ABBREVIATIONS AND ACRONONYMS AFUR - African Forum for Utility Regulators AIDS - Acquired Immune Deficiency Syndrome APP - Annual Procurement Plan BPS - Bulk Procurement System CAG - Controller and Auditor General CCC - Consumer Consultative Council CCM - Chama Cha Mapinduzi CSC - Client Service Charter DCA - Director of Corporate Affairs DIA - Director of Internal Audit DLS - Director of Legal Services DNG - Director of Natural Gas DoE - Director of Electricity DP - Director of Petroleum DRE - Director of Regulatory Economics DWS - Director of Water and Sanitation EADG - Executive Assistant to Director General EAPP-IRB - East Africa Power Pool - Independent Regulatory Board EFQM - European Foundation for Quality Management EIA - Environmental Impact Assessment ELC - Electrical Installation License Committee EREA - Energy Regulators of East Africa of Southern Africa ERIS - Electricity Regulatory Information System ESAWAS - Eastern and Southern Africa Water and Sanitation Regulators Association ESIRSR - Electricity Supply Industry Reform Strategy and Roadmap EWURA - Energy and Water Utilities Regulatory Authority FCC - Fair Competition Commission FCR - Full Cost Recovery FCT - Fair Competition Tribunal GCC - Government Consultative Council GIS - Geographical Information System HIV - Human Immune-deficiency Virus HR - Human Resources ICT - Information and Communication Technology IEC - Information, Education and Communication - vii - STRATEGIC PLAN FOR 2017/18 - 2021/22 IFRS - International Financial Reporting Standards ISO - International Organisation of Standardisation KPIs - Key Performance Indicators LOIS - Licensing and Ordering Information System LPG - liquefied petroleum gas M&E - Monitoring and Evaluation MCPR - Manager Communication and Public Relations MDAs - Ministries, Independent Departments and Executive Agencies MEM - Ministry of Energy and Minerals MIS - Management Information Systems MPM - Manager Procurement Management MTEF - Medium Term Expenditure Framework NARUC - National Association of Regulatory Utility Commissioners NAWAPO - National Water Policy NBAA - National Board of Auditors and Accountants NEP - National Energy of Policy NGIS - Natural Gas Information System NGUMP - Natural Gas Utilization Master Plan NPIS - National Petroleum Information System OPRAS - Open Performance Review and Appraisal System OSHA - Occupational Safety and Health Authority PAR - Public Access Register PIC - Petroleum Importation Coordinator PO-PSM - President’s Office – Public Service Management PPAs - Power Purchase Agreements PPF - Public Pensions Funds PPPs - Public-Private Partnerships QMS - Quality Management Systems RERA - Regional Electricity Regulators Association SDGs - Sustainable Development Goals SOs - Strategic Objectives SPPAs - Small Power Purchase Agreements SPPs - Small Power Producers TOR - Terms Of Reference UDSM - University of Dar es Salaam USoA - Uniform System of Accounts WSSAs - Water Supply and Sanitation Authorities - viii - STRATEGIC PLAN FOR 2017/18 - 2021/22 EXECUTIVE SUMMARY The Medium Term Strategic Plan (July 2017 - June 2022) was developed through an interactive and participatory processes. Through a series of interactive strategic planning workshops, EWURA’s functions and its operations were diagnosed bringing out the key issues that impact on the service delivery by EWURA, its strengths and weaknesses. The interactive process aimed at creating a common understanding and buy-in of both the strategic planning process and its eventual outputs. The strategic planning workshops entailed conducting analysis of the following: (a) the background of EWURA; (b) EWURA’s mandated roles and functions; (c) assessment of performance of the previous Strategic Plan including conducting an analysis of recent initiatives, achievements and challenges thereof; (d) stakeholders’ analysis; (e) organizational scan; and (f) trend analysis. EWURA’s diagnosis came out with the following critical issues: (a) During the planning period EWURA will constantly need to meet emerging new challenges and government directives. EWURA shall always align itself to meet these new challenges and directives. (b) Cross-cutting issues which are: gender mainstreaming; good governance practices; HIV/AIDS; non-communicable diseases; staff health and fitness; drug and alcohol abuse, and environmental protection will continue to be addressed and strengthened in this Strategic Plan. (c) For EWURA to meet key stakeholders expectations, the Authority will need to adopt strategies that will enhance the Authority’s ability to capture, analyse and disseminate information for decision making. Furthermore, EWURA shall need to establish a system of obtaining information from regulated sectors in order to regulate effectively while at the same time transparently committing service levels and standards to be expected by its stakeholders (Client service charter and getting feedback). (d) The government continues to develop measures to enhance doing business in Tanzania. To complement that effort, EWURA shall continue to develop well-prepared regulatory tools which are pre-requisites for attracting investments in the regulated sectors. (e) In order to address inadequate investments in the regulated sectors, EWURA shall intensify its efforts of facilitating private sector participation and Public-Private Partnerships (PPPs). (f) Human capital issues including staff development, engagements, embedding institutional culture, re-tooling, recruitment, retention and working environment, will continue to be critical to ensure that EWURA is capable of discharging its functions at an acceptable speed and quality. (g) Financing of EWURA is another priority area for this Strategic Plan because as EWURA’s operations expand, financing will be more critical. It is crucial for EWURA to become financially sustainable as provided in the EWURA Act, Cap 414 of the Laws. (h) The Public has got to know and participate in the process of regulating the energy and water sectors. Public education and awareness will continue to be addressed in this Strategic Plan. - 1 - STRATEGIC PLAN FOR 2017/18 - 2021/22 (i) EWURA headquarters currently operates from rented office premises in Dar es Salaam. As the government has directed the move to Dodoma, the designated Capital of Tanzania, EWURA will look for alternative ways for acquiring an office space in Dodoma. (j) As dynamics in the regulated industry change, EWURA has to keep pace with those changes by promoting the application of technology in conducting its business. (k) As more stakeholders get to know and understand the functions and responsibilities of EWURA, demand for its services will increase and the need to extend the reach through establishment of more zonal offices and strengthening the existing ones will be more than real. (l) In order to improve the quality of regulated services, EWURA will continue to conduct compliance monitoring and enforcements. (m) EWURA will continue striving to learn and achieve international best practices by cooperating with regional and international regulatory organisations and associations. (n) EWURA will continue to implement Quality Management Systems (QMS) in order to continually improve its operational performance. In order to address the above issues EWURA reviewed the organization’s key statements and values as follows: EWURA’s Core Values EWURA staff shall be guided by the catchword ‘IMPACT’ with six (6) core values as follows: Core Value I Impartiality M Morality P Professionalism A Accountability C Courtesy T Transparency The Vision Statement: “To be a World Class Regulator of Energy and Water Services” The Mission Statement: “To Regulate Utilities for Energy and Water Sectors in a Transparent, Effective and Efficient Manner that Ensures their Quality, Availability and Affordability” Motto: “Fair Regulation for Positive IMPACT” Rationale of the Strategic plan This fourth Strategic Plan focuses on the identified critical issues and improvement of service delivery and addresses all areas included in the mandated roles and functions of EWURA. The Strategic Objectives which have been identified to be addressed over the next five years include: (a) Quality, availability and affordability of regulated services improved; (b) Public knowledge, awareness and understanding of regulatory functions in the regulated sectors enhanced; - 2 - STRATEGIC PLAN FOR 2017/18 - 2021/22 (c) EWURA functions effectively and efficiently managed; and (d) Interventions against HIV/AIDS, corruption and other cross-cutting issues enhanced. Based on these Strategic Objectives, strategies have been identified with corresponding targets, activities and outcome indicators over a 5 year time frame (2017 – 2022). This Strategic Plan will ensure that the overriding objectives of the Authority are spelt out clearly and the necessary accountability is created to achieve the desired improvement in service delivery to customers and stakeholders. As part of the Monitoring and Evaluation (M&E) process that will follow the Strategic Planning Process, the hierarchy of objectives and outcome indicators as enshrined in this Strategic Plan document will be cascaded down to the individual employee level to ensure their achievement within the specified time period. This document will also be used to prepare the Authority’s Annual Budgets and Plans. - 3 - STRATEGIC PLAN FOR 2017/18 - 2021/22 CHAPTER I INTRODUCTION

1.1. Background This is the fourth Strategic Plan of EWURA. The first Strategic Plan which covered the period from July, 2006 to June, 2008 was developed by a consultant. This first plan enabled the establishment of EWURA and commencement of its operations. The second plan for three years covering the period from July, 2008 to June, 2011 was developed by EWURA based on the experience of implementation of the first three years plan. The third plan for five years covering the period from June, 2012 to July, 2017 was developed by EWURA under the facilitation of an individual consultant and was based on the experience of implementation of the former three plans.

1.2. The Planning Process EWURA’s Management Team constituted itself into the strategic planning team and developed the Plan. The Team reviewed the earlier five year Strategic Plan (2012/13 to 2016/17) and EWURA’s ten years performance since its inception. The drafting process was both consultative and internally participatory. All staff were involved through a staff meeting that was conducted on 22nd March 2017. Moreover, the Management held three consultation meetings on, 4th January 2017, 13th February 2017 and 3rd March 2017 to review various draft reports and the Management’s views were taken on board. In addition, Stakeholders’ satisfaction survey was conducted to get feedback from both internal and external stakeholders on the performance of EWURA during the implementation of the previous Strategic Plan (2012/13 to 2016/17). Finally, the draft document was discussed at the Board of Directors’ meeting, and approved. The following 13 step processes were used in reviewing the previous five years Strategic Plan and developing the current five year plan. - 4 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Figure 1: Steps in Reviewing the Strategic Plan - 5 - STRATEGIC PLAN FOR 2017/18 - 2021/22 The approach used for each of these steps is described in more detail below. The results of each step are presented in Chapters II, III, IV, V, VI and VII and in the Appendices.

1.2.1. Recent Initiatives: Achievements and Challenges A review of EWURA’s background, roles and mandates and the performance of the earlier plan were conducted. Then the strategic planning team dwelt on recent initiatives including achievements and challenges. It was observed that during the last five years EWURA initiated a number of measures aimed at maintaining its high performance record while at the same time improving its service delivery. While EWURA takes pride in a number of achievements, it is also true that the regulator faces some challenges in maintaining excellence and quality service delivery.

1.2.2. National and International Planning Frameworks This Strategic Plan took into account national and international planning and policy documents relevant to EWURA which should guide the planning process for the next planning circle. Such documents include the National Water Policy (NAWAPO) of 2002; the National Energy of Policy (NEP) of 2015; the National Development Vision 2025; the Second National Five Year Development Plan: 2016-2021 “Nurturing Industrialisation for Economic Transformation and Human Development”; the CCM Election Manifesto of 2015; the Budget Guidelines for Financial Year 2017/18; the Global Sustainable Development Goals (SDGs) for 2030, and other relevant medium term targets. This analysis enabled the planning team to align EWURA’s interventions with national and international aspirations.

1.2.3. Stakeholders’ Analysis A stakeholders’ analysis using the simplified mind-works box was conducted. The Strategic Planning Team addressed the question as to WHO needs WHAT from EWURA. The impact of not meeting clients’ expectations was also analysed. The stakeholders were categorized into 13 main groups: 11 for external stakeholders and two (2) for internal stakeholders. Stakeholders’ perceptions survey on EWURA’s service delivery on both external and internal stakeholders was also conducted.

1.2.4. Internal Organizational Scan An internal organization scan using a simplified version of the European Foundation for Quality Management (EFQM) or simply the Excellency Model to identify arrears of strengths and those needing improvement was conducted (See Figure 2). Nine criteria (leadership, policy and strategy, people management, partnership and resources, core processes, customer results, people results, society results, and key performance results) were analysed through which the team unveiled EWURA’s internal strengths and areas of improvement. - 6 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Figure 2: The European Foundation for Quality Management (EFQM) Excellence Model Source: EFQM 2012

1.2.5. External Trend Analysis The team noted that EWURA is working in a globalized world, which is constantly changing. It is therefore important to determine what trends may affect its operations and take them into account during the planning process. The external trend analysis was conducted through the PESTAL model as described in Figure 3. Figure 3: External Trends Analysis Source: PO-PSM (Strategic Planning Guidelines, 2002) - 7 - STRATEGIC PLAN FOR 2017/18 - 2021/22

1.2.6. Critical Issues Following the situation analysis a set of critical issues were identified, which will require EWURA’s attention during the medium-term period between July, 2017 and June, 2022.

1.3. The Vision and Mission Statements, Core Values, Strategic Objective, Strategies, Targets and Outcome Indicators From the results of the situation analysis the Strategic Plan for the period 2012/13 to 2016/17 was reviewed. This Strategic Plan for 2017/18 to 2020/21 contains the following outputs:

1.3.1. Core Values Values are the guiding principles that all members and employees of EWURA will commit themselves to follow towards the attainment of the shared and agreed vision.

1.3.2. Vision The vision represents an idealized view of a desirable but potentially achievable future state of EWURA. The vision would set in motion the process for becoming a service oriented and high performing regulator.

1.3.3. Mission The mission statement states what services and benefits EWURA offers to her clients based on reasons for her existence. It also identifies the scope of her operations/services, and when her customers need them.

1.3.4. Strategic Objectives (SOs) Strategic Objectives are specific, measurable, achievable, realistic and time-bound outputs (goals or services) to be produced by EWURA so as to deliver the Regulator’s Mission and Vision. SOs are specific and time bound for the five-year period and include both new and activities.

1.3.5. Strategies Strategies are approaches for achieving the Regulator’s desired strategic objectives.

1.3.6. Targets Specific outputs, which measure critical, service delivery parameters within the defined timeframe to enable EWURA achieve the overall strategic objective. They are also divided into Service Delivery Targets, Capacity Building Targets and Investment Targets.

1.3.7. Outcome Indicators These are the means used to measure the performance of the Regulator and also to ensure that it is meeting the set of defined objectives and targets. The outcome/results indicators are shown in Appendix 2. - 8 - STRATEGIC PLAN FOR 2017/18 - 2021/22

1.4. Contents of This Plan The remaining part of this document is divided into the following Chapters: (a) Chapter II begins with a short organizational history. Then it gives details of findings from the situation analysis including results from EWURA’s stakeholders’ analysis, strengths and weaknesses identified during the organizational scan, opportunities and challenges considered during the trend analysis and critical issues. (b) Chapter III presents the main body of the Strategic Plan which describes: Core Values; Mission; Vision; MOTTO; the Strategic Objectives; Implementation Strategies; Targets (deliverables); Assigned Responsibilities, and Annual Activities summarized in Appendix 1. (c) Chapter IV describes the Monitoring and Evaluation (M&E) Results Framework. The framework for each objective describes: outcome indicators; indicator description; data source; contact person; data collection methodology and frequency; baseline data, and annual targets. (d) Chapter V describes projections of the resource envelop required to implement the five years strategic plan. (e) Chapter VI describes the critical factors and barriers to success as well as details next steps to overcome the barriers. (f) Chapter VII describes quick wins to be implemented for improving service delivery initiatives. (g) Finally two appendices illustrate the salient features of the Plan. - 9 - STRATEGIC PLAN FOR 2017/18 - 2021/22 CHAPTER II SITUATION ANALYSIS

2.1. Introduction This chapter covers EWURA’s background by summarizing information pertaining to the legal framework, functions and the organizational structure. The chapter also attempts to build a case for interventions during the Strategic Plan period by asking questions on where the Authority is, why it is there, where it wants to be, and how to get there. Further, it explains in brief the performance of both the past 10 years since EWURA’s inception and the previous Strategic Plan of EWURA.

2.2. Legal Framework The Energy and Water Utilities Regulatory Authority (“EWURA”) was established by an Act of Parliament, the Energy and Water Utilities Regulatory Authority Act, Cap. 414. It is a multi-sectoral regulatory authority responsible for technical and economic regulation of electricity, natural gas, petroleum and water sectors in Mainland Tanzania. For that matter, EWURA’s functions and responsibilities are also governed by other sector legislations including the Petroleum Act, Cap. 392; Electricity Act, Cap. 131; Water Supply and Sanitation Act, Cap. 272; DAWASA Act, Cap. 273; Fair Competition Act, Cap. 285 and the Finance Act, which is issued annually.

2.3. Functions of the Authority EWURA is charged with the responsibility of carrying out economic and technical regulations in the energy and water sectors, in a manner that will enhance the welfare of the Tanzanian community in respect of the regulated sectors. The functions of EWURA as spelt out in the Act are: (a) to perform all functions conferred on it by sector legislation and Cap. 414; (b) to issue, renew and cancel licenses; (c) to establish standards for goods and services; (d) to establish standards for terms and conditions of supply of goods and services; (e) to regulate rates and charges; (f) to make rules; (g) to monitor performance of regulated sectors in relation to availability, quality, standards of services, cost of services, efficiency of production, investment levels and distribution of services; (h) to facilitate resolution of complaints and disputes; and (i) to disseminate information about matters relevant to its functions. Section 6 of the EWURA Act, Cap 414, further requires EWURA to assume the following duties in the course of carrying out its functions: (a) promoting effective competition and economic efficiency; (b) protecting the interests of consumers; (c) protecting the financial viability of efficient suppliers; (d) promoting the availability of regulated services to all consumers, including low income, rural and disadvantaged consumers; (e) taking into account the need to protect and preserve the environment; and - 10 - STRATEGIC PLAN FOR 2017/18 - 2021/22 (f) enhancing public knowledge, awareness and understanding of the regulated sectors including the rights and obligations of consumers and regulated suppliers, the ways in which complaints and disputes may be initiated and resolved, and the duties, functions and activities of the Authority.

2.4. Governance and Organizational Structure EWURA is governed by a Board of Directors consisting of a Chairman and six members including the Director General. The Board is the highest decision-making organ of the Authority, while the Director General manages the day-to-day activities of the Authority. Under the current Organization Structure, the Director General is assisted by eight Divisional Directors, three Heads of Units and the zonal managers. Currently, the Authority operates the headquarter office in Dar es Salaam, the Lake Zone office in Mwanza, the Southern Highlands zone in Mbeya, the Northern zonal office in Arusha, and the Central zonal office in Dodoma. EWURA’s Organization Chart is elaborated in Figure 4. Board of Directors Director General Director of Internal Audit Manager Manager Communications Procurement & Public Management Relations Zonal Managers ICT Manager Director of Director of Director of Director of Director of Director of Director of Corporate Petroleum Natural Gas Electricity Water and Legal Affairs Regulatory Affairs Sanitation Economics Figure 4: EWURA’s Organization Structure

2.5. Staffing By December 2016, the Authority had 121 employees with different qualifications and hierarchical levels against the approved establishment of 178 employees as shown in the Table 1. - 11 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Table 1: EWURA’s Staffing Level by December 2016 Position Requirement Employed Vacancies Director General 1 1 0 Directors 9 6 3 Managers 23 18 5 Principal Officers 27 25 2 Senior Officers 23 17 6 Officers 43 25 18 Assistant Officers 15 7 8 Support Staff 37 22 15 Total 178 121 57

2.6. Funding EWURA Act, Cap 414 stipulates that EWURA shall be funded mainly through charging of levies. Other sources of finances include licence fees, grants and donations. The funds collected are being used to finance both capital and operational budgets of the Authority. The law further requires the Authority to deposit all surplus funds in a special account. Consistent with the EWURA Act, the funds from the special account shall only be used for consumer education or information projects, special non-recurring projects, capital expenditure budget or major rate regulating inquiries. The Authority witnessed an increase in levy collection from TZS 26.4 billion in 2012/13 to TZS 39.4 billion in 2016/17 contributing about 90 percent of EWURA’s revenues. The balance of 10 percent is collected mainly from license fees (5 percent) and other incomes (5 percent). Table 2 and Figure 5 summarise revenue and expenditure for the past four years of operation. Table 2: Revenue and Expenditure Trend (2012/13-2015/16) REVENUE SOURCES 2012/13 2013/14 2014/15 2015/16 TZS “000” TZS “000” TZS “000” TZS “000” Regulatory Levy 26,393,367 29,595,558 34,145,408 39,417,143 Licence Fees 870,285 482,290 677,935 1,059,607 Other Income 1,384,791 1,345,503 1,369,450 1,187,673 Finance Income 547,657 1,730,754 2,497,268 3,638,287 TOTAL REVENUE 29,196,100 33,154,105 38,690,061 45,307,710 RECURRENT EXPENDITURE 21,206,809 25,532,766 28,693,748 36,793,197 DEVELOPMENT EXPENDITURE 40,623 - 40,020 198,638 TOTAL EXPENDITURE 21,247,432 25,532,766 28,733,768 36,991,835 - 12 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Figure 5: EWURA’s Revenue and Expenditure Trend (2012/13 - 2015/16)

2.7. Review of EWURA’s Performance Assessment of EWURA’s performance of the previous strategic plan (2012/13-2016/17) was complemented with assessment of the Authority’s performance since its inception, as EWURA celebrates its 10th anniversary during the financial year 2016/17.

2.7.1. Review of EWURA’s Performance Since Inception (2006-2016) a) Electricity Sub-Sector EWURA facilitated growth and development of the electricity subsector by developing various regulatory tools, approving various electricity tariffs, issuing licences for activities requiring licensing to operate, approving initiation of procurement of power projects, performance monitoring of licensees and approving various power purchase agreements. In a bid to facilitate a conducive environment for investment, EWURA developed various rules namely, Electricity (Regulation of Generation Services) rules; Electricity (Regulation of Transmission Services) Rules; Electricity (Regulation of Distribution Services) Rules; Electricity (Regulation of Supply Services) Rules; Electricity (Tariff Setting) Rules; Electricity (Initiation of Power Projects Procurement) Rules; Electricity (Development of Small Power Projects) Rules; Electricity (Electrical Installation Services) Rules; Electricity (Licensing Fee) Rules; Electricity (Regulation of Market operation Services) Rules; and Electricity (System Operation Services) Rules. In addition to the rules, EWURA developed guidelines and procedures to guide Electricity Supply Industry (ESI) stakeholders on various issues as well as facilitating development of regulations which are enacted by the Minister responsible for electricity matters. EWURA approved initiation of procurement of five (5) power projects with a total installed capacity of 837MW which are at different stages of implementation. It also issued 38 licences for electricity activities (generation, transmission, distribution and supply) to developers and operators as well as 1,743 electrical installation licences to electrical installation personnel. - 13 - STRATEGIC PLAN FOR 2017/18 - 2021/22 In 2008 a framework for Small Power Producers (SPPs) was introduced with the aim of facilitating and expediting development of small power projects of renewable energy sources through private sector participation. It also aimed at promoting investment in electricity generation and distribution in rural areas particularly those which are not grid connected. Through this initiative, EWURA facilitated the signing of 15 Small Power Purchase Agreements (SPPAs) between TANESCO and various SPP developers with a total of 62.7MW installed capacity, out of which 8 SPPs capable of generating 33.62MW are in operation. In addition, 27 Letters of Intent for about 95.3MW installed capacity of SPPs were issued by TANESCO to developers. In 2015, the SPP framework was reviewed for improvement and under this new framework, EWURA proposed competitive procurement for solar and wind projects between 1MW and 10MW. EWURA conducted a Cost of Service Study in 2013 with the objective of establishing the costs incurred in each segment of the electricity supply chain (generation, transmission, distribution and supply) to enable determination of cost reflective electricity tariffs. EWURA also developed tariff setting rules and tariff application guidelines to ensure that tariffs are determined in a consistent and transparent manner. EWURA facilitated implementation of Electricity Supply Industry Reform Strategy and Roadmap (ESIRSR) that was launched in July 2014. Activities implemented by EWURA included development of seven (7) model Power Purchase Agreements (PPAs) for oil, natural gas, coal, hydro, geothermal, solar and wind and also regulatory tools for designation of the current TANESCO Grid Control Centre to Independent System Operator and for regulating system and market operations under the restructured Electricity Supply Industry (ESI). Furthermore, the Grid and Distribution Codes were developed to govern matters pertaining to transmission and distribution of electricity. As part of performance monitoring, EWURA carried regular inspections on licensees’ premises (plants and network) through which, technical and administrative shortfalls were identified and reported back to the licensees for improvements. Through these performance monitoring activities, EWURA enabled the licensees to improve their technical performance and customer services. b) Petroleum Sub-Sector EWURA introduced petroleum pricing regulation in January 2009 which resulted into a drop of the petroleum prices by 30 percent during the fourth quarter of FY 2008/09. Moreover, according to the study by the University of Dar es Salaam (UDSM) conducted in April 2014, petroleum price regulation increased average disposable income to the tune of TZS 445.5 billion and resulted to an average increase in tax revenue of TZS 49 billion per annum. EWURA also introduced fuel marking in September 2010 which significantly contributed to a decrease in the level of adulteration from 78 percent in 2007 to less than 5 percent from the fourth quarter of financial year 2015/16. Furthermore, the study carried out by UDSM found out that fuel marking as an anti-dumping measure led to an increase in tax revenue by a total of TZS 468.50 billion between 2010 and 2013. Bulk Procurement System (BPS) in importation of petroleum products was introduced in January 2012. BPS, among others, contributed to security of supply, reduction of demurrage days from 40 to an average of 1 to 4 days, reduction of freight and suppliers’ premium to an average of USD 44.08/ MT, collection of accurate data on FOB prices and premium which have led to fair competition and reduced petroleum prices to the final consumers. A study conducted by UDSM concluded that the BPS contributed TZS 121.6 billion to the economy in 2012 and 2013 through increase in individual incomes. - 14 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Establishment of standards of petroleum infrastructure led to reduced contamination of products, improved health, safety and environmental matters to the country. Up to December 2016, EWURA issued a total of 1,397 licenses for conducting petroleum downstream operations. These licenses included 107 wholesale licenses; 1,204 retail licenses; 19 wholesale – lubricant licenses; one (1) storage license; eight (8) wholesale – LPG licenses; two (2) bunkering licenses; one (1) Petroleum Bulk Procurement Agency (PBPA) license; seven (7) Consumer Installation licenses and 48 construction approvals. EWURA facilitated the establishment of mobile phone SMS application that enables customers and general public to access petroleum products prices published through mobile phones. EWURA developed more than 16 regulatory instruments in the petroleum sector which are intended to facilitate proper discharge of the Authority’s regulatory roles. These are: Petroleum Wholesale Rules; Petroleum Retail Rules; Sampling and Testing Rules; Marking and Quality Control Rules; Petroleum Road Transportation Rules; Petroleum Consumer Installation Rules; LPG Rules; Lubricant Operation Rules; Lubricant Sampling and Testing Rules; Petroleum Marine Loading and Offloading Rules; Refinery Operation Rules; Waste Oil Recycling Operation Rules; Petroleum Pipeline Operation Rules; Price Setting Rules; Petroleum Bitumen and Petcoke Rules, and Petroleum Village and Small Town Retail Operation Rules. The last one was established to promote installation of retail outlets in townships and villages at least cost without compromising health, safety and environmental issues. Hence investors are encouraged to construct small petrol stations in villages and townships. c) Natural Gas Sub-Sector With the introduction of the Petroleum Act, 2015, and making it operational, EWURA commenced preparations of associated regulatory tools for players in the sub sector. These included creating inputs to the regulations, drafting rules and guidelines, construction permits and templates of licences. In order to regulate midstream and downstream natural gas operations covering 57.25 trillion cubic feet of Gas-Initially-in-Place, procedures and systems have to be in place. Based on regulatory tools and the track records of EWURA, special strategic investments covering project with 20 year term or longer (in fertilisers, power and cement) have started coming to Tanzania. EWURA has created inputs to develop three (3) regulations, namely the Draft Petroleum (Natural Gas Pricing) Regulations, 2016 which will facilitate setting of tariffs (for natural gas processing, transmission and distribution), indicative price and strategic investments; the Draft Petroleum (Local Content) Regulations, 2017 which will promote local participation (through employment, technology transfer, acquiring long-term interest, and domestic procurement); and the Draft Petroleum (Corporate Integrity Pledge) Regulations, 2017 which will guide on good governance practices in the natural gas subsector. EWURA conducted the natural gas field monitoring through quarterly visits of the facilities. Monitoring has been through desktop tracking, visual observations, inspections, questionnaires, interviews, and reviewing reports prepared by/for the service providers. This way, EWURA was able to track the improvements in technical, safety and economic regulations as well as compliance to the legislation, policies and plans. Over the past ten years, EWURA approved a number of tariffs and tariff methodologies for computation of natural gas processing, transportation and distribution tariffs for Songas, Pan African Energy and TPDC, which has enabled the service providers to recover their operational and investment costs. The bottom line is for the service providers to achieve the cost reflectivity tariffs. - 15 - STRATEGIC PLAN FOR 2017/18 - 2021/22 For the past four years, EWURA has collaborated with the National Association of Regulatory Utility Commissioners (NARUC) and USAID reviewing the pipeline regulations, rules and Uniform Systems of Accounts. Apart from NARUC, EWURA worked with the Hungary Utilities Regulatory Authority, and the Energy Regulatory Association of East Africa. Indeed, EWURA has brought the world working experiences and practices to Tanzania. d) Water Sector EWURA has licenced a total of 113 WSSAs out of 130 WSSAs that have been established as detailed in Table 3. The licences issued are for a period of 10 years and classified into Classes I, II and III with Class I being the highest in terms of managerial, technical and financial capability to operate a licenced facility and meet costs of operation. Table 3: Licencing Status for Water Supply and Sanitation Authorities Status Regional District and National DAWASA DAWASCO Total Towns Townships Projects Licenced 23 80 8 1 1 113 Unlicenced - 17 - - - 17 Total 23 97 8 1 1 130 Through performance monitoring and tariff reviews, EWURA has managed to improve technical, managerial and financial capabilities of WSSAs. As a result, Tanga and Moshi WSSAs have qualified for Class I licence. Other WSSAs are at various stages for qualification into higher licence classes. With regard to the 17 unlicensed WSSAs, EWURA will continue to liaise with relevant authorities so that these WSSAs meet the required licensing conditions. EWURA issued Business Planning Guidelines for WSSAs in order to assist WSSAs structure their Business Plans so as to effectively manage water supply and sanitation services. Through training, 84 out of 130 water utilities have been able to plan and 39 utilities have been able to set multiyear tariffs using the guidelines. Consequently, two WSSAs (Tanga and Moshi WSSAs) have attained full cost recovery after being able to sustainably cover operational costs and maintaining quality of services for 3 consecutive years while 21 other water utilities cover operational and maintenance costs and have shown a positive trend towards reaching full cost recovery. EWURA developed five (5) regulatory tools which contributed to improvement in quality of service in the water and sanitation sector. These are Water Supply and Sanitation (Quality of Service) Rules, 2016; Guidelines on Water and Wastewater Quality Monitoring for WSSAs, 2014; Inspection Manual for Water Utilities, 2015; Guidelines for Water Tankers and Private Boreholes, 2013; and Performance Benchmarking Guidelines, 2014. Since its inception, EWURA has issued eight (8) Annual Water Utilities Performance Review Reports which rank WSSAs based on key performance indicators hence increasing competition and performance. These reports have enabled the government and development partners to make informed policy, administrative and investment decisions and therefore enabling effective and focused allocation of limited resources. These reports have also enabled water utilities to identify their strengths and weaknesses; benchmark among themselves, and learn from best performers and thereby improve efficiency in service delivery. - 16 - STRATEGIC PLAN FOR 2017/18 - 2021/22 e) Cross Cutting Issues During this period, EWURA was able to achieve the following:- (i) Receiving an ISO (International Organisation of Standardisation) certificate ISO 9001:2008 through Certificate Identity Number TZ15/90332. (ii) Handling complaints against suppliers of regulated goods or services in relation to any matter connected with the supply, possible supply or proposed supply of goods or services. Up to December 2016, a total of 933 complaints were received of which 726 were resolved (which is equivalent to 78 percent). Table 4: Status of Complaints Resolution Sector Received Resolved Percentage of Resolved Complaints Electricity 456 359 79% Petroleum 208 189 91% Natural Gas 1 0 0% Water 268 259 97% Total 933 726 78% (iii) Conducting public awareness campaigns through recorded and live interviews in various radio and TV stations on various matters related to EWURA’s regulatory functions including the roles and responsibilities of EWURA; the rights and obligations of the service providers and consumers; and complaints handling mechanism. Public awareness programmes were also conducted through seminars on petroleum, electricity, and water sectors in all regions. The programmes have increased awareness on EWURA functions in the country. (iv) Strengthening its reach resulting in more stakeholders’ awareness and knowledge on the functions and responsibilities of EWURA which led to increase in demand for its services. Consequently, EWURA extended its reach through the establishment of four (4) Zonal Offices out of the five (5) planned, in Mwanza (Lake Zone), Arusha (Northern Zone), Mbeya (Southern Highlands Zone) and Dodoma (Central Zone). (v) Developing a Client Service Charter which is used to guide on the measure of the level of customer satisfaction. (vi) Introducing the Licensing and Ordering Information System (LOIS) for the purpose of electronic management of the licences, compliance orders, complaints and tariff reviews. (vii) Raising EWURA’s establishment from 97 staff in June 2012 to 121 staff by December 2016. The recruitment drive has enabled EWURA to improve performance and service delivery. (viii) Maintaining collaborative arrangements with other regulators and regulatory associations at the national, regional and international levels. The collaborations has enabled EWURA to benchmark its operations with international best practices. (ix) Receiving highly ranked compliant status among procurement entities by PPRA since its inception. (x) Receiving clean audit reports from CAG since its inception. (xi) Having low labour turnover averaging about 2.9% per annum since its inception. - 17 - STRATEGIC PLAN FOR 2017/18 - 2021/22

2.7.2. Review of Performance of the Strategic Plan 2012/13-2016/17 Assessment of the implementation of the Five Year Strategic Plan (2012/13-2016/17) was conducted. The assessment was based on the five (5) Strategic Objectives. The Objectives were: (a) Least cost investments in the regulated sectors promoted; (b) Quality and access of regulated services improved; (c) Public knowledge, awareness and understanding of regulatory functions in the regulated sectors enhanced; (d) EWURA functions effectively and efficiently managed; and (e) Interventions against HIV/AIDs enhanced. Table 5 highlights performance of the Authority in terms of implementation of the medium term five year Strategic Plan for the period 2012/13-2016/17. It shows that EWURA has achieved about 87 percent of the targets set during the implementation of the previous mid-term five year Strategic Plan. The unimplemented 13%, mostly relate to the Natural Gas Sub-sector as their performance was affected by late enactment of the sub-sector legislation, hence such targets have been carried forward in the new Strategic Plan. Table 5: Assessment of Previous Strategic Plan S/N Strategic Objectives No. of Assessment Targets Fully Partially Not Implemented Implemented Implemented 1. Least Cost Investments in the 26 14 8 4 Regulated Sectors Promoted 2. Quality and Access of 30 16 7 7 Regulated Services Improved 3. Public Knowledge, Awareness 4 2 2 0 and Understanding of Regulatory Functions in the Regulated Sectors Enhanced 4 EWURA’s Functions Efficiently 43 33 7 3 and Effectively Managed 5 Interventions against HIV/ 1 1 0 0 AIDS Enhanced Total 104 66 24 14 Percentage 100% 64% 23% 13%

2.7.3. Challenges Notwithstanding the achievements attained both during the past 10 years and during the implementation of the second five year Strategic Plan (2012/13-2016/17), EWURA faced challenges as follows: (a) Late enactment and coming into force of the Legislation governing Natural Gas impacted implementation of planned targets in the sub-sector. - 18 - STRATEGIC PLAN FOR 2017/18 - 2021/22 (b) Promotion of investment through PPP was one of the main strategies during the implementation of the second five year Strategic Plan (2012/13-2016/17). PPP being a new concept in Tanzania faces inadequate expertise both in-house and in the regulated utilities. To compound the problem the PPP sector specific frameworks are yet to be developed. (c) Regulatory functions are heavily dependent on operating procedures of other institutions which sometimes have bogged down implementation of some of the key activities. 4 (d) Inadequate technical and financial capacity particularly in the district and township water utilities has negatively impacted the Regulator’s compliance requirements. (e) Delays in obtaining Environmental Impact Assessment (EIA) Certificate has led to prevalence of petroleum stations constructed without approval from EWURA. In addition, there have been delays in securing Land Title Deeds; and EIA Certificates for electricity generation. (f) Increased smuggling of kerosene from neighbouring countries and selling of transit and tax exempted products. (g) Inadequate gas infrastructure which negatively impacts industrial growth and domestic and external consumption. (h) High rent for EWURA’s Headquarters office located in Dar es Salaam, while initial efforts to construct an office building in Dar es Salaam started but was stopped. The challenge is how to mobilize resources for relocation to Dodoma and at the same time implementing operational cost reduction measures. (i) Existence of substandard petroleum outlets in rural areas which are non-compliant to EWURA’s standards and are a security hazard while the Regulator has the responsibility of ensuring both security and supply. (j) The current mode of petroleum transportation using roads is costly in terms of; high petroleum prices in peripheral areas, destruction of roads, safety, and the environment. The conventional way of using pipeline and railways is capital intensive. (k) The EWURA Act, Cap 414 provides for regulatory independency. However, there are trends of threatening that independency through political and administrative interference.

2.7.4. Key lessons learned (a) Need for Strategic Plan monitoring and evaluation tools including developing baseline data. (b) Need for vigorous application of the SMART concept in setting objectives and targets as well as KPIs. (c) Strategic Plan is not a blueprint but a living document. There is a need to continue being flexible in the implementation of the Strategic Plan through annual reviews which annually inform the plan and budgeting exercise. (d) Need to develop mechanisms for enhancing participation and consultation in the preparation of Strategic Plan throughout the Authority.

2.8. Recent Initiatives and Emerging Issues: Achievements and Challenges A detailed analysis of the recent initiatives taken by EWURA and emerging issues which occurred during the previous five year Strategic Plan is presented in Table 6. - 19 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Table 6: Recent Initiatives, Achievements and Challenges S/N Recent Initiatives/Emerging Achievements Attained Challenges Issues 1. Implementation of Electricity ❖ Development of seven ❖ Negotiation of PPAs was Supply Industry Reform model Power Purchase taking a long time. Strategy and Roadmap Agreements (PPAs) for oil, ❖ Limited participation of (ESIRSR) 2014 - 2025. natural gas, coal, hydro, private players in the geothermal, solar and electricity market. wind. ❖ The need to govern ❖ Developed regulatory matters pertaining tools for designation to transmission and of the Independent distribution of electricity System Operator and the Independent Market Operator. ❖ Developed the Grid and Distribution Codes 2. Initiated the process to start ❖ Initial assessment of the ❖ There might be some using Mtwara port to receive port, storage facilities and reluctance from some bulk petroleum products as a products demand in the OMCs/key stakeholders 3rd alternative port to Dar es Southern regions have to receive products via Salaam and Tanga ports. been done including key Mtwara port because stakeholders meeting to most of them do not discuss on the port/region have storage facilities in readiness to receive bulk Mtwara. petroleum products. 3. Engaged TRA to start ❖ Since TRA started ❖ It may take long for all effective implementation of implementing the Rule Lubricant operators to be the Lubricants Operation in August, 2016, EWURA licensed but it is a good Rules as a way of ensuring has seen overwhelming start. that all Lubricants Operators number of applications become licensed with for Lubricant licenses EWURA by not allowing and levy collections from any clearance of imported Lubricant licensees is lubricant if the importer is not steadily increasing. licensed by EWURA. This will also minimize or eliminate poor quality lubricants and enhance fair and healthy competition in the lubricant business in the country. - 20 - STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N Recent Initiatives/Emerging Achievements Attained Challenges Issues 4. Provide technical assistance ❖ A total of 84 business ❖ Most district and to water utilities on plans from water utilities township water utilities preparing/reviewing Business were reviewed. There lack qualified and Plans and reviewing of tariffs has been a continuous sufficient staff for based on Business Plans improvement in terms effectively and efficiently of quality of the WSSAs’ managing the operations Business Plans submitted of water utilities. to the Authority for ❖ None of the water review. utilities has conducted performance audits after expiration of their business plans as stipulated in the Inspection Manual. ❖ There is high demand for training of DT WSSAs on Business Planning while human and financial resources at EWURA are limited. 5. Facilitate water utilities to ❖ Two WSSAs (Tanga and ❖ Tariff proposals for WSSAs attain Full Cost Recovery Moshi WSSAs) have are not based on cost of (FCR) by issuing multiyear attained FCR after service studies. tariffs based on Business sustainably covering ❖ Most district and Plans operational costs and township water utilities maintaining quality are small in size and of services for 3 years hence have low potential consecutively. to sustainably cover their ❖ 21 water utilities costs. cover operation and maintenance costs and there is a positive trend towards Full Cost Recovery 6. Signing of Performance Accountability of the Board Need for incorporating all the Contract between TR and and Director General is more targets in the Performance the Board of Directors; clear. contracts in the EWURA’s and between the Board of plans and budgets. Directors and DG including quarterly performance reporting to TR and the Minister. - 21 - STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N Recent Initiatives/Emerging Achievements Attained Challenges Issues 7. Enabling customers and Mobile users are enabled Need to improve awareness general public to access to get updated fuel pump of the application petroleum products prices prices at any point in Tanzania information through mobile by simple SMS to specified phones. number with district name 8. Allowing automatic tariff A number of WSSAs applied Reduction of time between applications from water for automatic tariff and approval of TANESCO supply and sanitation EWURA reviewed accordingly tariff and automatic tariff authorities (WSSAs) to adjustments. accommodate TANESCO Tariff adjustments 9. Development of Succession Capacity of internal staff to fill Lack of objectivity in its Policy posts falling vacant enhanced implementation. 10. Gender inequality and Action plan to address Inadequate awareness of mainstreaming policy gender inequality and gender mainstreaming developed and operational. mainstreaming in EWURA strategies operations developed and implemented.

2.9. Stakeholder’s Analysis During the review exercise, a stakeholders’ analysis was conducted using the simplified ‘Mind-Works Box’. A summary of the stakeholders’ analysis using the Simplified Mind-Works box is presented in Table 7. Table 7: Stakeholders’ Analysis Using Mind-Works Box S/N Stakeholder Expectations Potential Implications 1. Regulated Service Providers ❖ Transparent, impartial ❖ Tarnished image and poor and timely regulatory reputation decisions ❖ Credibility of the ❖ Creation of level playing regulator field among service ❖ Exposure to litigation and providers complaints against the ❖ Professionalism and regulator integrity ❖ Poor performance of the ❖ Timely and accurate regulated sectors information ❖ Privacy and confidentiality on their information - 22 - STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N Stakeholder Expectations Potential Implications 2. Consumers of Regulated ❖ Available, quality, ❖ Limited economic Services and General Public affordable and reliable development and services from Service investment Providers ❖ Resorting to illegal ❖ Impartiality, fairness and alternatives which timely decision by the are environmentally regulator unfriendly and vandalism ❖ Safe, quality and to regulated services environmentally friendly infrastructure infrastructure ❖ Default payments and ❖ Protection and Special increased complaints consideration ❖ Political unrest including riots ❖ Increased corruption ❖ Demoralized citizens 3. The Central Government and ❖ Professionalism in ❖ Sanctions against its Institutions including LGAs conducting regulatory EWURA’s Board and functions Management ❖ Advise on policy and ❖ Dissolution of the legislation of the regulator regulated sectors ❖ Changing of the ❖ Implementation of the Act in a manner that regulated sector policies could jeopardise its and Acts including independence aspirations enumerated in ❖ Restructuring of the national and international Authority planning frameworks ❖ Government intervention ❖ Fit for purpose, value in EWURA’s decisions for money and legal compliance in EWURA operations ❖ Good governance practices including combating corruption and promotion of gender equality ❖ Effectiveness and efficiency in provision of regulatory services; ❖ Creating an enabling environment for promotion of investments in the regulated sectors - 23 - STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N Stakeholder Expectations Potential Implications 4. EWURA’s Service Providers ❖ Transparency and ❖ Corruption allegations; impartiality in the ❖ Loss of interest in bidding procurement of for EWURA services; goods, services, and ❖ Increased cost of service consultancies; and deterioration of the ❖ Professionalism and quality of service; integrity of EWURA staff ❖ Increased complaints; ❖ Courtesy and timely ❖ Litigations and penalties; response to queries ❖ Loss of credibility and inquiries including payments; ❖ Clarity of contracts and agreements; ❖ Proper contract management 5. Regulators and Regulatory ❖ Collaboration in ❖ Long learning curve; Associations enforcement to ensure ❖ High cost in regulation; compliance to various ❖ Limited references from standards, regulations, other regulators; and requirements ❖ Tarnished image of ❖ Knowledge and EWURA; experience sharing, and ❖ Loss of credibility to benchmarking; stakeholders ❖ Harmonization of rules, guidelines, procedures and standards ❖ Timely provision of accurate information 6. Civil Societies ❖ Transparency and ❖ Negative publicity about impartiality in conducting EWURA; EWURA’s functions; ❖ Limited compliance to the ❖ Timely provision of law; accurate information; ❖ Lack of regulated services ❖ Initiatives targeting the to disadvantaged poor and disadvantaged communities communities in regulated ❖ Increased costs of sectors regulatory functions ❖ Collaborative agreements with EWURA in some specific areas such as advocacy and pro-poor interventions. ❖ Consultation and involvement in some of the regulatory processes 7. Media ❖ Timely disclosure of ❖ Distorted information accurate information about EWURA ❖ Active participation in the ❖ Increased speculative regulatory processes to information enhance knowledge ❖ Negative publicity and tarnished image of EWURA - 24 - STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N Stakeholder Expectations Potential Implications 8. Academic and research ❖ Correct data and ❖ Possibility of distorted institutions information from the information regulator ❖ Tarnished image ❖ Partnership in research ❖ Mismatch between and use of their research training curricula and knowledge/findings market needs ❖ EWURA as a resource for ❖ Unutilised research training on regulation, findings regulated sector specific matters and other fields. 9. Development Partners ❖ Transparency, credibility, ❖ Withdrawal of consistency and development assistance objectivity in conducting ❖ Poorly rated regulator regulatory functions ❖ Poor reputation ❖ An independent regulator ❖ Accurate and timely information sharing ❖ Fit for purpose, value for money and legal compliance in EWURA operations ❖ Efficient and effective regulator 10. Politicians ❖ Increased coverage of ❖ May influence the public service to tarnish EWURA’s image ❖ Affordable services ❖ Disharmony between the ❖ Sustainability and access regulator and legislators of service ❖ Timely and impartial regulatory decisions ❖ Accurate information 11. Investors ❖ Transparency, credibility, ❖ Low investments in the consistency, predictability regulated sectors and independence of ❖ Tarnished image of the the regulator in decision country and the regulator making ❖ Increased costs of services ❖ Timely decision making ❖ Tendency of monopoly ❖ Fair returns on traits in the provision of investments some of the regulated ❖ Level playing field in the services regulated sectors ❖ Poor service delivery ❖ Investor friendly ❖ Prevalence of corruption regulatory framework - 25 - STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N Stakeholder Expectations Potential Implications 12. The EWURA staff ❖ Attractive remuneration ❖ Low productivity and packages and timely morale payment. ❖ Labour unrest ❖ Conducive working ❖ High staff turnover environment ❖ Frustrated staff ❖ Timely provision of state- ❖ Imbalanced gender of-the-art working tools profile ❖ Attractive career development schemes ❖ Job security and reliable job contracts ❖ Clearly defined job description ❖ Attractive staff welfare schemes ❖ Good governance practices and fair treatment ❖ Transparent staff appraisal system 13. Board of Directors ❖ Reputable organisation ❖ Sanctions against ❖ Respect and trust by the EWURA’s Management Government, regulated ❖ Low productivity and service providers and the morale of the Board public ❖ Poorly rated regulator ❖ Provide services as ❖ Bad reputation of the mandated by the law organisation ❖ Timely implementation of Board’s directives ❖ Conducive working environment ❖ Exposure to regulatory best practices ❖ Commensurate and prompt remuneration

2.9.1. Stakeholders’ Analysis Using Clients’ Perception Surveys (a) External Stakeholders’ Analysis A Stakeholders’ Perception Survey was conducted to assess EWURA’s performance in service delivery. A questionnaire in both English and Kiswahili was sent to a sample of 220 stakeholders out of which 73 which is 33% of the sample, responded. The findings of the survey highlights many positive aspects of the Authority and the results are very encouraging. Stakeholders’ analysis of satisfaction level is present in Table 8. - 26 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Table 8: Stakeholders’ Analysis on Satisfaction Level Level of Satisfaction with EWURA Services S/N Type of Service Excellent Good Fair Poor Very No Poor Opinion 1. Communication with its 49% 41% 4% 0% 0% 5% stakeholders (phone calls, emails, letters and various inquiries) 2. Review and Approval of Tariffs and 25% 38% 16% 0% 1% 19% Petroleum Pricing Formulas 3. Issuing, renewing and revoking of 14% 45% 15% 1% 0% 25% licenses 4. Review and Approval of Standards 23% 59% 7% 0% 1% 10% for Terms and Conditions of Supply of Goods and Services 5. Monitoring Performance of 33% 45% 12% 4% 0% 5% Regulated Sectors including Inspections 6. Resolution of complaints and 12% 45% 19% 3% 0% 21% disputes between services providers and their customers submitted to EWURA 7. Clients’ complaints handling 21% 37% 22% 4% 0% 16% process 8. Information dissemination 38% 41% 10% 0% 0% 11% including information packs published by EWURA 9. Tendering Process 11% 32% 12% 0% 0% 45% 10. Processing payments of service 8% 34% 10% 0% 0% 48% providers 11. Overall Satisfaction Level with 23% 42% 13% 1% 0% 21% Services Offered by EWURA From the information above 65 percent of EWURA stakeholders perceive EWURA’s service delivery as satisfactory while only 0.5% of EWURA stakeholders consider the services offered as not satisfactory. Table 9 presents reasons for satisfaction and dissatisfaction and suggested areas of improvement of EWURA’s service delivery. - 27 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Table 9: Stakeholders’ Analysis on Suggested Areas of Improvement Reasons for Satisfaction Reasons for Dissatisfaction Suggested Areas of Improvement i) Informative website i) EWURA is not independent i) Performance monitoring of (contacts, emails, prices, enough (should be free the regulated sectors; news); from political pressures); ii) Increase communication ii) Involvement of ii) Poor regulation of petrol with the public through stakeholders during stations and fuel prices; media and website; regulation processes/ iii) Lack of strictness of the iii) Establishment of zonal services; regulator which leads offices for better outreach. iii) Quick feedback of to poor performance of tariff review upon tariff regulated utilities (eg. application; TANESCO, WSSAs); iv) Clear process of resolving iv) Prevalence of unresolved conflicts, objectives and complaints and disputes complaints; which are still pending. v) Public awareness (informative TV programmes, newsletters and media); vi) Good follow up on the regulated sectors (good relationship with customers). Stakeholders’ perceptions have guided EWURA to develop the Strategic Plan and developing its actions to sustain what its stakeholders are satisfied with and take measures to improve. (b) Internal Stakeholders’ Analysis During the planning session EWURA used the findings of a study commissioned to Management Development Consultancy Bureau (MDCB) of the University of Dar es Salaam Business School (UDBS) on Workplace Satisfaction Survey. The study was conducted between May to July 2016 aimed at obtaining employees’ perceptions on various aspects of their jobs and working conditions. The survey covered all employees and captured their respective opinion on different workplace issues including job satisfaction, their organization, relationship with the management and co-employees. Results indicate a fairly satisfied workforce at EWURA where overall most of the employees are satisfied and have positive attitude towards both management and organizational practices. The response rate of this survey was 34.1%. Below is a summary of findings of the Staff Satisfaction Survey: (i) Global Level of Job Satisfaction of EWURA Employees: 61.9% of EWURA employees are very satisfied with working for EWURA, 61.9% of all employees are very satisfied with working in their departments and 63.4% are very satisfied with the quality of relationship with their immediate supervisors. (ii) Satisfaction with Pay and Benefits: Majority of the surveyed employees are satisfied with their current base pay (80.4%), levels of incentives (68.3 %), annual increment (71.4%), the process used to determine annual salary increment (66.7%), and various benefits provided by EWURA (71.4%). - 28 - STRATEGIC PLAN FOR 2017/18 - 2021/22 A significant percent of participants (58.3%) could not establish whether they are satisfied or dissatisfied with the medical insurance scheme provided by EWURA. (iii) Satisfaction with Career Progression: Majority of EWURA employees are satisfied with their individual career progression and possibilities for career progression at EWURA (59.5%). 61.6% of the employees surveyed are not sure of their satisfaction with the process used to determine promotions at EWURA. (iv) Satisfaction with Performance Management: Employees are satisfied with the way their performance is evaluated (71.5%) and the way their performance is valued by EWURA (42.9%). (v) Satisfaction with Working Conditions: The surveyed employees are generally satisfied with all variables of job context, physical working conditions (90%), and working space (88%), availability of working tools (92%) and work load (71%). (vi) Attitude of EWURA employees towards its Mission: Results indicates that employees believe that EWURA clearly conveys its mission to the employees (85.4%), and EWURA clearly conveys its mission to the clients (90.2%). (vii) Attitudes of EWURA Employees towards Relationship with Supervisors: Generally, employees are of the view that their supervisors are doing a good job (97.6%), listen to their suggestions (97.6%0), enable them to perform at their best (95.2%) and promote an atmosphere of teamwork (90.5%). Employees are also happy with the way their supervisors evaluate their job performance (90.2%) and provide them with workable suggestions for the improvement of their performance (92.9%). (viii) General Morale of EWURA Employees: The surveyed employees feels they have high levels of morale (90.3%), they are part of EWURA (92.6%), they receive the right recognition (82.9%) and it is easy to get along with colleagues at EWURA (97.5%). (ix) Attitudes of Employee toward Communication: EWURA employees perceive organizational communication in the Authority as being very effective in all major fronts – effective lateral communication (97.7%), effective vertical communication (80.5%) and clear communication process and system (89.8%). (x) Attitude towards Learning and Development Opportunities: Results indicates that majority of employees have positive attitude towards available learning and development opportunities at EWURA. Some of the areas for improvement as reflected by employee opinions are as follows: (i) Provide more opportunities for learning and career development. (ii) Administration of staff welfare benefits and incentives (iii) Communication -Staff participation and feedback (iv) Design more motivating jobs and relationships (v) Learning and career development opportunities (vi) Improved recognition and valuing employees’ contribution to the authority’s performance (vii) Improve provision of medical service scheme to staff During this planning period EWURA will strive to sustain the gains and make efforts to make organization attract and retain qualified staff. - 29 - STRATEGIC PLAN FOR 2017/18 - 2021/22

2.10. Organizational Scan In the planning process an organization scan was also conducted. The analysis was carried out at two levels, the internal and external environment. While the former is the environment in which the organization has a reasonable degree of influence, in the latter there is no reasonable degree of influence. The internal scan aimed at identifying areas of strength and areas of improvement. While the external scan aimed at identifying opportunities and risks/challenges.

2.10.1. Internal scan (Strengths and Areas for Improvement) In scanning the internal environment in which EWURA operates, an assessment of five important criteria for running any organization was conducted. The five criteria chosen were: leadership, policy and strategy, people management, partnership and resources, and core processes. These operational criteria were supplemented by additional four criteria which are result-based namely, customer results, people results, society results, and key performance results. The internal scan aimed at identifying areas where EWURA is relatively strong and areas, which would require changes and improvement in the future. A summary of the analysis using all the nine criteria is presented below: Criterion 1: Leadership How leaders develop and facilitate the achievement of the mission and vision, develop values required for long-term success and implement these statements and values via appropriate actions and behaviours, and are personally involved in ensuring that the organization’s management system is developed and implemented. Strengths (a) Leaders are competent and qualified in their respective areas of specialization. (b) Leaders are involved in establishing the mission, vision and values and the behaviours expected in the organization. (c) Leaders are always accessible to employees and they also make themselves accessible through staff meetings and promote an open door policy. (d) Management and Board meetings are regularly conducted. (e) Leaders are firmly committed to their jobs and manage the organization with high integrity. (f) Leaders are accountable in their decisions. Areas of Improvement (a) There is a need to institute proper delegation of responsibility and authority. (b) There is a need to improve upwards, downwards and horizontal communications. (c) There is a need to institute mechanisms to enable leaders to model the behaviour which they expect of subordinate staff. (d) There is a need to improve mentoring and coaching of subordinate staff. (e) There is a need to improve exposure and networking with other local and international regulatory authorities (f) There is a need to continue promoting cross-divisional and cross-sectional collaboration and team building culture within Authority. - 30 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Criterion 2: Policy and Strategy How the organization implements its mission and vision via a clear stakeholder focused strategy, supported by relevant policies, plans, objectives, targets and processes. Strengths (a) Clear principal and subsidiary legislation which were developed in a consultative manner. (b) Since inception, EWURA has been operating with strategic plans, and annual plans and budgets. (c) Published and disseminated EWURA annual performance reports and sector specific performance reports. (d) Quarterly newsletters published and disseminated to the Public. (e) Quarterly performance reports for each division prepared. (f) Adherence to Customer Service Charter. Areas for Improvement (a) There is a need to strengthen internal control and ownership of all key documents across the organisation including: policies, legislation, strategic plans, annual plans and budgets. (b) Regular reviews of key documents to keep pace with developments of the regulated sectors at the national and international level. Criterion 3: People Management How the organization manages, develops and realizes the knowledge and full potential of its staff at an individual, team-based and organization-wide level, and plans these activities in order to support its policy, strategy and the effective operation of its processes. Strengths (a) EWURA’s recruitment is done transparently and competitively. (b) EWURA staff operate with clearly defined job descriptions. (c) EWURA staff have the right technical skills and the knowledge to perform their jobs. (d) EWURA staff performance is evaluated annually. (e) Succession plan is in place. (f) EWURA staff are provided with a conducive working environment and working tools. Areas of Improvement (a) Implementation of the reviewed Organization Structure will enhance performance of the Authority. (b) Introduction of computerised OPRAS and then migration to Balanced Score Card appraisal. (c) To continue instituting more measures to attract and retain professional and technical staff. (d) The need to enhance delegation mechanisms in order to build leadership capacity and promote succession initiatives. (e) The need to promote innovation, learning and creativity. - 31 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Criterion 4: Partnership and Resources How the organisation plans and manages its external partnership and internal resources in order to support its policy and strategy and the effectiveness of its processes. Strengths (a) Consultative forums are in place including Consumer Consultative Council (CCC) meetings, Government Consultative Council (GCC) meetings, stakeholders meetings and Public hearings. (b) Membership and partnership to regulatory associations including: Regional Electricity Regulators Association (RERA); Energy Regulators of East Africa and Southern Africa (EREA); Eastern and Southern Africa Water and Sanitation Regulators Association (ESAWAS); African Forum for Utility Regulators (AFUR); East Africa Power Pool - Independent Regulatory Board (EAPP-IRB), and National Association of Regulatory Utility Commissioners (NARUC). (c) Good working relationship with outsourced service providers. (d) Clearly identified sources of financing. (e) Effective systems are in place for expenditure control. (f) Adherence to Procurement Plans and Annual Budgets. Areas for Improvement (a) The need to continue participation in partnership forums both at national, regional and international levels. (b) The need to review regulatory levies in order to improve revenue collection consistent with new service expansion. Criterion 5: Core Processes How the organization designs, manages and improves its processes in order to support its policy and strategy and fully satisfy, and generate increasing value for its customers and other stakeholders. Strengths (a) EWURA’s clients are well defined in the EWURA Act, Cap 414. The top management and the majority of staff understand the clients and are committed to serving them. (b) Basic regulatory tools including licence templates, tariff guidelines, and tariff rules and regulations developed and enforced. (c) Various business processes management systems developed and operationalized. (d) Client service charter developed and operationalized. (e) Information, Education and Communication (IEC) Policy and Strategy developed and operationalized. (f) There is a fully fledged Section dealing with consumer complaints. (g) Since its establishment, EWURA has been implementing public awareness programme and disseminated various information packs to the public through various media. Areas of Improvement (a) Monitor and evaluate implementation of the Client Service Charter. (b) Need to review the IEC Policy and Strategy. (c) Need to develop an integrated MIS. (d) Improving the way of collecting feedback from different areas of operation (e.g. service delivery surveys, and systematically collecting opinion and views raised in the Press.). - 32 - STRATEGIC PLAN FOR 2017/18 - 2021/22 (e) Developing and operationalizing a monitoring and evaluation system. (f) Need to improve on time management including having well planned and structured meetings. Criterion 6: Customer Results What the organization is achieving in relation to its external Customers Strengths (a) Recognition as the best regulator in the region. (b) Positive feedback from consumers of regulated services. (c) Improved delivery and quality of regulated services. (d) Improved public awareness on EWURA’s functions. Areas of Improvement (a) Need to continue instituting other mechanisms of collecting and using information from front- line staff including introduction of toll-free telephone line. (b) Need to periodically review performance of the Client Service Charter. (c) Need to continue with Public awareness programmes. (d) Need to introduce systematic and proper recognition and appreciation accolades and awards to exemplary service providers. (e) Need to have a dedicated Unit for handling customer complaints on services offered by EWURA. Criterion No. 7: People Results What the organisation is achieving in relation to its people. Strength (a) EWURA staff are fairly remunerated. (b) High staff retention rate. (c) Few labour disputes. (d) EWURA staff more competent and trainable. Areas for Improvement (a) Periodically conduct staff satisfaction survey. (b) Need to institute mechanism to protect or compensate staff from work related risks. (c) Need to improve capacity building programmes. Criterion No. 8: Society Results What the organization is achieving in relation to national, regional and international society as appropriate. Strengths (a) In 2009 and 2010, EWURA featured high in two Peer Reviews by the University of Cape Town for Electricity amongst regulators from Uganda, Kenya, Zambia, Namibia and Ghana. (b) In 2011, EWURA ranked one of the exemplary regulators in Africa (Governance and Substance) in a study funded by European Union. - 33 - STRATEGIC PLAN FOR 2017/18 - 2021/22 (c) The study conducted by the University of Dar es Salaam in April, 2014 found that • the fuel marking program as both an anti-adulteration and an anti-dumping measure had resulted into an increase in tax revenue; • BPS contributed to TZS 121.6 billion to the economy in 2012 and 2013 through increase in individual incomes and continues since then; and • regulation of petroleum products pricing has resulted into lower average prices that led to increased tax revenue and increasing disposable incomes in the economy. (d) On 8th June 2015, EWURA received Energy Regulator of the Year Award for Excellence 2015 - recognition for exceptional clarity in its objectives creating an environment that meet the needs of investors and consumers. (e) Bloomberg News Energy Finance study (December 2015), recognised that EWURA in its regulatory functions leads in facilitating conducive environment in off grid investments in sub- saharan Africa. Areas of Improvement (a) Maintain and improve fuel marking system. (b) Maintain and Improve Bulk Procurement System. (c) Increase intensity of inspections and adherence to routine inspection schedules. Criterion No. 9. Key Performance Results What the organisation is achieving in relation to its planned performance. Strengths (a) In 2013, EWURA was ranked as a Continental leader in relation to regulatory governance in a peer review study conducted by Eastern and Southern Africa Water and Sanitation Regulators Association (ESAWAS).The organisation is ISO 9001 certified. (b) EWURA is among the highly ranked compliant procurement entities by the Public Procurement Regulatory Authority (PPRA) since its inception. In 2009, EWURA was ranked the first among government agencies after scoring 98 percent in the compliance audit conducted by PPRA. (c) Clean audit reports from Controller and Auditor General (CAG) since its inception. (d) Public Pensions Funds (PPF) Award, 2nd Winner for Early remittance of member contribution during the year 2014. (e) National Board of Auditors and Accountants (NBAA) Award - Regulatory Authorities Category (Users of International Financial Reporting Standards (IFRS)): 2nd Winner of the Best Presented Financial Statements for the year 2013. (f) NBAA Award - Regulatory Authorities Category (Users of IFRS): 3rd Winner of the Best Presented Financial Statements for the year 2014. Area for Improvement (a) Need to develop plans and strategies to sustain the levels of performance achieved. - 34 - STRATEGIC PLAN FOR 2017/18 - 2021/22

2.10.2. External Trend Analysis (Opportunities and Challenges) As part of the strategic planning process, an assessment of what challenges and opportunities, the future may hold for EWURA was conducted. During this analysis several dimensions: economic trends, institutional trends, workforce/human capital trends, political/legal/regulatory trends, sociological trends, facilities/equipment trends, technological trends, and ecological/environmental trends and were considered. Economic/Revenue Trends According to the Second Five Year National Development Plan, Tanzania needs to maintain a GDP growth of at least 8% over the next five years in order to achieve the Vision 2025 of becoming a middle income country. Increased GDP growth means that the regulated sectors will need to grow accordingly. This will offer both opportunities and challenges to EWURA. The opportunity will be the growth of revenue base as many providers will enter the regulated market. The challenge will be doing more activities which will require more funds. Institutional/ Structural Trends There are notable emerging governmental structural issues such as: review of organization structure of Ministries, Departments and Agencies (MDAs), government cost-cutting measures, and the transfer of government activities to Dodoma. The opening up of more zonal offices by EWURA is another institutional and structural trend. These trends may pose both opportunities and challenges to EWURA’s operations. Organizational restructuring may help EWURA to be more efficient and effective in its functions. Cost-cutting measures may assist EWURA to focus on core and priority activities only and the centrality of the government capital may enable EWURA customers to access its services easily. The challenge is to implement cost cutting measures without negatively impacting the performance of the regulated sectors. In addition, EWURA will need more funds to be allocated to relocate EWURA head offices to Dodoma and strengthening of new zonal offices. Workforce /Human Capital Trends The assessment of the workforce trends indicates that the business world is changing rapidly and this has transformed the way the global workforce is sourced, organized and managed. Knowledge, trade, technology, capital and goods are more globally connected than ever before. Employee’s mobility and retention continues to be a critical issue due to growth in emerging markets. Despite the fact that the workforce and human capital trends offer opportunity for availability of highly qualified and skilled personnel, the challenge is how to attract and retain this workforce in terms of incentive packages, training in a constrained resource envelope, and acquiring new technologies and work tools, which some of them are expensive to acquire and maintain. In addition, in managing its workforce EWURA needs to consider new emerging issues such as organizational design, leadership, culture, engagement, learning, and design thinking. Political, Legal and Regulatory Trends The assessment of the political, legal and regulatory trends reveals that the country’s political stability, peace and harmony shall continue to lay a foundation for strong economic performance in the regulated sectors. The fifth phase Government is committed to make the country industrialized under the theme of “Nurturing Industrialization for Economic and Human Development”. Tanzania’s economic and political future seems to be promising for prospect of energy and water sectors. - 35 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Possible opportunities include conducive business environment; growth in investment opportunities; and improved country’s infrastructure. One of the challenges is the new government which came into force in late 2015 has new politicians and senior government officials who, some of them, need awareness of EWURA’s regulatory functions. This also applies to the existing politicians and senior government officials since awareness is a continuous process. EWURA’s regulatory functions will also need to be enhanced as a result of the enactment of the new Petroleum Act of 2015 which has set a regulatory framework for Natural Gas sub sector. Sociological Trends During preparation of the second Strategic Plan 2017/18 – 2020/21, the sociological factors which can affect EWURA’s work performance were identified. These included HIV/AIDS, corruption, non- communicable diseases, gender mainstreaming, lifestyles, drug and alcohol abuse, and environmental issues. Specifically, according to the second five year development plan, the status of HIV/AIDS epidemic is still not promising with HIV prevalence of 5.1% of the adult. In addition, there is high prevalence of non-communicable diseases such as diabetics, pressure, paralysis, heart diseases and other chronic disease, resulting into expensive medical treatments, and which contribute to the life expectancy of 61 years. Progress and efforts made by the Prevention and Combating of Corruption Bureau (PCCB) notwithstanding, Tanzania still lags behind a number of countries in term of combating corruption. Interventions to prevent environmental degradation is still high on government agenda. This requires among others, promotion of renewable green energy technologies. The government also puts emphasis on interventions to ensure gender balance in order to unleash women’s potentials to contribute to the envisaged social economic transformation. Measures against drug and alcohol abuse is also high on the fifth phase government’s agenda. All these cross-cutting issues require EWURA to put up a special awareness programme for its staff in order to address the issues. Facilities/Equipment and Technology Trends To deliver quality services to its customers, EWURA will need to deploy modern and appropriate equipment, facilities and technologies commensurate to its regulatory functions. These technologies may provide opportunities for EWURA to do more and faster in its service delivery programme. The challenge however, is that, technology is expensive and keeping pace with its frequent changes is problematic. EWURA will need to spend some of its funds to deploy modern information systems in order to carry out its functions efficiently and effectively. Ecological/Environmental Trends Tanzania is endowed with rich and diverse natural resources which provide an opportunity for development in the regulated services. However, the ongoing climate change may impact water sources hence affect availability of water services. Availability of energy may also be affected as a result of decreasing water volumes and hence reduced hydro power generation. This calls for initiatives to promote development of alternative sources of energy, efficient use of energy and water as well as conservation of water sources. Also, in view of conservation of natural resources, the National Five Year Development Plan (2016/17 -2020/21) aspires a 60% reduction of charcoal consumption in urban areas and increase in the proportion of energy derived from renewable green energy to 50% by 2020. This brings a challenge to the regulator to facilitate availability of alternative and affordable energy sources. - 36 - STRATEGIC PLAN FOR 2017/18 - 2021/22

2.11. National Planning Frameworks This section summarises the national aspirations enumerated in key planning and policy documents relevant to EWURA which should guide the planning process for the next planning circle. Such documents include the National Water Policy (NAWAPO) of 2002, the National Energy of Policy (NEP) of 2015; the National Development Vision 2025, the Second National Five Year Development Plan: 2016-2021 “Nurturing Industrialisation for Economic Transformation and Human Development”; the CCM Election Manifesto of 2015; the Budget Guidelines for Financial Year 2017/18; the Global Goals or Sustainable Development Goals for 2030, and other relevant medium term targets. The above enumerated national planning frameworks, sector policies and medium term targets, as they will be elaborated below, clearly state the government’s high commitment to ensure that the sectors regulated by EWURA contribute to national development efforts to make Tanzania become a middle income country by 2025. The government’s commitment to the regulated services poses both an opportunity and challenge to EWURA to improve its performance and service delivery. (a) Electricity As regards the electricity sub-sector, increased electricity generation has been at the centre stage for promotion of socio-economic development of the country. The National Energy Policy of 2015 aspires for sufficient power for domestic market at the best generation mix. This is consistent with the SDGs which aspire for ensuring access to affordable, reliable, sustainable and modern energy for all. Specifically, the SDGs call for more energy efficient and investment in clean energy sources such as solar and wind. To implement the policy, the national development vision 2025 aspires an electricity per capita consumption of 490Kwh. The associated mid-term target is 377Kwh per capita by 2020 as stipulated in the Second Five Year Development Plan (2016/17-2020/21) and the CCM Election Manifesto of 2015. The Second Five Year Development Plan (Development Plan) has an ambitious target of 60 percent reduction in charcoal consumption in urban areas through promotion of renewable green energy technologies (biogas, solar energy), as well as geothermal, and wind. The Development Plan also aims to address the industrialisation agenda through developing simplified processes of connection to electricity power as part of provision of conducive environment for doing business and investing in the country is emphasized. (b) Petroleum To promote the downstream petroleum sub-sector, the government through the National Energy Policy, 2015 will ensure sustainability and safety of petroleum supply through infrastructure development. The Second Five Year Development Plan and the CCM Election Manifesto of 2015 also aim at ensuring adequate storage by constructing storage facilities in Dar es Salaam, Mtwara, and Tanga; attraction of private investment to ensure that the City of Dar es Salaam turns out to be a regional hub in terms of market for petroleum products; to ensure, through EWURA and other institution, that quality petroleum products are provided at cost reflective prices; and promotion of LPG for domestic and industrial usage. (c) Natural Gas Diversification of energy sources from hydro-electrical power to natural gas has provided a good sign as far as reliability of electricity generation is concerned. Apart from providing gas for power, the government is cognisant of the low domestic and industrial gas consumption which leads to high consumption of biomass and hence threatening the environment. As for promotion of domestic usage of gas, the government in the Second Five Year Development Plan (2016/17-2020/21) promises to construct domestic gas supply infrastructure in Dar es Salaam, Mtwara, Bagamoyo and Lindi. Plans are also in - 37 - STRATEGIC PLAN FOR 2017/18 - 2021/22 place to construct the petro-chemical industries and the LNG plants. Other interventions, on the natural gas sub-sector include natural gas infrastructure development; preparation of Natural Gas Utilization Masterplan (NGUMP); promotion of local participation in natural gas sector; capacity building; and implementation of policy and legislation on supervision of natural gas and petroleum revenue collection for local development. (d) Water Supply and Sanitation Sector Tanzania’s long term national development agenda envisages universal access to safe water and sanitation services by 2025. This is slightly an ambitious target compared to the international Sustainable Development Goals (SDGs) which aspires universal and equitable access to safe and affordable water and sanitation services by 2030. To achieve the long term goals, both the Second Five Year Development Plan (2016/17-2020/21) as well as the CCM Election Manifesto of 2015 target 95 percent and 50 percent access to water supply and sanitation services, respectively, for water utilities located at regional centres by 2020. For the City of Dar es Salaam, access to sanitation services is targeted at 40 percent by 2020. As for rural areas, a target of 85 percent and 75 percent of access to water and sanitation services, respectively is set by the year 2020. To attain these targets the Second Five Year Development Plan (2016/17-2020/21) targets huge investments in the water and sanitation infrastructure. These investments include construction of water harvesting and sewerage infrastructure; rehabilitation of water supply and sewerage infrastructure; completion of major water supply and sanitation projects; and capacity building at all levels of requirement including harvesting, transmission, distribution and billing. Facilitation of private sector participation in the provision of water and sanitation services in the form of PPP arrangement is also high in the agenda. (e) Cross-Cutting Agenda As for cross-cutting issues, the fifth phase government through the Second Five Year Development Plan insists on conducting monitoring and evaluation; having good governance and institutional capacity building; having competent and well-functioning Board of Directors of State Owned Enterprises; enhancing gender equity through affirmative actions as well as international commitments and existing policies and legal frameworks; promoting staff health and fitness and putting more interventions against non-communicable diseases; drug and alcohol abuse, environmental degradation and HIV/ AIDS. Other cross-cutting areas highlighted in the Budget and Plan Guidelines of 2017/18 include implementation of the decision of capital transfer to Dodoma; reviewing of levies to be consistent with national socio-economic development efforts; increase in revenue collection and new revenue sources; promotion of investment and business environment; and promotion of ICT applications.

2.12. The Critical Issues The review of the performance of the previous Strategic Plan and recent initiatives; stakeholders’ analysis; self-assessment and trend analysis, revealed some critical issues that will take top priority in this Strategic Plan. The identified critical issues are as follows: (a) During the planning period EWURA will constantly need to meet emerging new challenges and government directives. EWURA shall always align itself to meet these new challenges and directives. - 38 - STRATEGIC PLAN FOR 2017/18 - 2021/22 (b) Cross-cutting issues which are: gender mainstreaming; good governance practices; HIV/AIDS; non-communicable diseases; staff health and fitness; drug and alcohol abuse, and environmental protection will continue to be addressed and strengthened in this Strategic Plan. (c) For EWURA to meet key stakeholders expectations, the Authority will need to adopt strategies that will enhance the Authority’s ability to capture, analyse and disseminate information for decision making. Furthermore, EWURA shall need to establish a system of obtaining information from regulated sectors in order to regulate effectively while at the same time transparently committing service levels and standards to be expected by its stakeholders (Client service charter and getting feedback). (d) The government continues to develop measures to enhance doing business in Tanzania. To complement that effort, EWURA shall continue to develop well-prepared regulatory tools which are pre-requisites for attracting investments in the regulated sectors. (e) In order to address inadequate investments in the regulated sectors, EWURA shall intensify its efforts of facilitating private sector participation and Public-Private Partnerships (PPPs). (f) Human capital issues including staff development, engagements, embedding institutional culture, re-tooling, recruitment, retention and working environment, will continue to be critical to ensure that EWURA is capable of discharging its functions at an acceptable speed and quality. (g) Financing of EWURA is another priority area for this Strategic Plan because as EWURA’s operations expand, financing will be more critical. It is crucial for EWURA to become financially sustainable as provided in the EWURA Act, Cap 414 of the Laws. (h) The Public has got to know and participate in the process of regulating the energy and water sectors. Public education and awareness will continue to be addressed in this Strategic Plan. (i) EWURA headquarters currently operates from rented office premises in Dar es Salaam. As the government has directed the move to Dodoma, the designated Capital of Tanzania, EWURA will look for alternative ways for acquiring an office space in Dodoma. (j) As dynamics in the regulated industry change, EWURA has to keep pace with those changes by promoting the application of technology in conducting its business. (k) As more stakeholders get to know and understand the functions and responsibilities of EWURA, demand for its services will increase and the need to extend the reach through establishment of more zonal offices and strengthening the existing ones will be more than real. (l) In order to improve the quality of regulated services, EWURA will continue to conduct compliance monitoring and enforcements. (m) EWURA will continue striving to learn and achieve international best practices by cooperating with regional and international regulatory organisations and associations. (n) EWURA will continue to implement Quality Management Systems (QMS) in order to continually improve its operational performance. - 39 - STRATEGIC PLAN FOR 2017/18 - 2021/22 CHAPTER III THE PLAN

3.1. Introduction The Authority’s vision statement is a broad statement of what the Authority wants to be in future. It reflects the “goal” that it envisages to achieve. The mission statement provides underpinnings for what it does and the reasons for its existence. It is recognized that the mission statement should not be rigid; but rather be a “living” expression that should be reviewed periodically and modified when necessary. Furthermore some Core Values that describe how the Authority intends to operate have been agreed upon. They are guidelines that frame the day-to-day decisions, attitudes and conduct as well as EWURA strategies and policies. They will permeate everything EWURA does from the organizational level to the individual level. As EWURA moves down the transformation path, the core values will particularly be important, since in a changing world, they will remain constant.

3.2. Core Values During the second Strategic Plan EWURA’s staff were guided by six (6) core values as follows: i) Transparency, ii) Integrity, iii) Courtesy, iv) Accountability, v) Professionalism, and vi) Equity. During the review exercise it was decided not only to focus on core values which aim at strengthening regulatory functions, but also to create a catchword which will make the core values both inspiring and easy to remember. EWURA’s staff will henceforth be guided by the catchword ‘IMPACT’ with six (6) core values as follows: Table 10: Core Values Core Value Description I Impartiality EWURA staff shall treat all stakeholders with fairness. The duty of EWURA as a regulator is to set a level playing field and balance interests of all stakeholders. M Morality EWURA staff shall ensure they uphold standards of right and good conduct. P Professionalism EWURA staff shall attend to their duties with the highest degree of competence and skills. A Accountability EWURA staff shall conduct their duties in a manner that shows readiness to take full liability and responsibility for their actions. C Courtesy EWURA staff shall treat their clients and colleagues with politeness. Staff shall regard themselves as servants of the people. T Transparency EWURA staff shall operate in an open manner. All their decisions shall be conducted without prejudice, with respect for the interests of all stakeholders and in a fair and completely transparent manner. - 40 - STRATEGIC PLAN FOR 2017/18 - 2021/22

3.3. Vision EWURA’s earlier vision statement was: “To be a World Class Regulator of Energy and Water Services”. During the Strategic Planning review sessions it was realised that EWURA was able to achieve high benchmark scores in various peer reviews. These reviews observed that EWURA was doing well in the fields of regulatory governance (credibility, legitimacy, and transparency of regulatory decisions) and substance (quality and robustness of regulatory decisions), while efforts were needed to achieve higher regulatory impact (cost effectiveness, reliability, attraction of new investments and financial viability) to the regulated sectors. Therefore, it was decided to retain the Vision which continues to focus on EWURA’s core functions. The retained vision statement is as follows: “To be a World Class Regulator of Energy and Water Services”

3.4. Mission EWURA’s earlier mission statement was “To Regulate the Energy and Water Services in a Transparent, Effective and Efficient Manner that Promotes Investments and Enhances the Socio Economic Welfare of the Tanzanian Society”. During the review session, it was emphasized that the bottom line of a mission statement should broadly reflect the roles and mandate of the organisation. As a consequence, the Mission statement was re-casted as follows: “To Regulate Utilities in Energy and Water Sectors in a Transparent, Effective and Efficient Manner that Ensures their Quality, Availability and Affordability”

3.5. Motto During the Strategic Planning review sessions it was proposed that EWURA has to briefly describe its core business through an inspiring Motto which describes what an organisation is or what it does. The Motto is required to be short, and easy to remember. Through a participative process involving EWURA staff, the Motto which reflects both the core values and the need to focus on impact was formulated in both Kiswahili and English as follows: “Fair Regulation for Positive IMPACT”

3.6. Rationale for Strategic Plan This fourth Strategic Plan focuses to deal with the critical issues and improve on service delivery and address all areas included in the mandated roles and functions of EWURA. The Strategic Objectives (SOs) that have been identified to be addressed over the next five years are as follows: (a) Quality, availability and affordability of regulated services improved; (b) Public knowledge, awareness and understanding of regulatory functions in the regulated sectors enhanced; (c) EWURA functions effectively and efficiently managed; and (d) Interventions against HIV/AIDS, corruption and other cross-cutting issues enhanced. - 41 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Based on these Strategic Objectives, strategies have been identified with corresponding targets, activities and outcome indicators over the 5 year time frame (2017 - 2022).

3.7. Strategic Objectives, Implementation Strategies and Expected Outputs Strategic Objective A: Quality, Availability and Affordability of Regulated Services Improved. The Second National Five Year Development Plan: 2016-2021 “Nurturing Industrialisation for Economic Transformation and Human Development”, targets to improve electricity connections from 36 percent in 2015 to 60 percent of the population in 2020. For the water sector, it is planned to increase access to water services in Dar es Salaam from 68% in 2015 to 95% in 2020, from 86% in 2015 to 95% in 2020 for Regional Centres and from 57% in 2015 to 95% in 2020 in district capitals, townships and national project areas. The country also aspires to promote access in the petroleum and natural gas sub-sectors by ensuring sustainability and safety of petroleum products and natural gas supply through quality infrastructures. Strategies to be taken under Strategic Objective A will be to (i) develop and review quality of service standards and codes; (ii) monitor and enforce quality of service standards; (iii) promote commercial viability of the regulated suppliers; (iv) develop and implement measures to protect consumers’ interests; (v) license the regulated suppliers; (vi) promote use of modern energy sources; (vii) ensure efficient procurement of regulated goods, services and infrastructure; (viii) facilitate investments for sustainable supply of regulated services; (ix) promote local content in Petroleum and Natural Gas sub- sectors, and (x) contribute to process for revision/development of policies, legislation and standards in the regulated sectors. The Expected Output/targets will be:

1.1 Electricity quality of services regulatory tools developed and/or reviewed annually.

1.2 Petroleum quality of services regulatory tools developed and/or reviewed annually.

1.3 Natural gas quality of services standards and regulatory tools developed and/or reviewed annually.

1.4 Water and sanitation quality of services regulatory tools developed and/or reviewed annually.

1.5 Monitor EWURA’s interventions in the regulated sectors annually.

1.6 Compliance monitoring in the electricity sub-sector conducted annually.

1.7 Compliance monitoring in the petroleum sub-sector conducted annually.

1.8 Compliance monitoring in the natural gas sub-sector conducted annually.

1.9 Compliance monitoring in the water and sanitation sector conducted annually.

1.10 Electricity sub-sector performance report developed and disseminated annually.

1.11 Petroleum sub-sector performance report developed and disseminated annually.

1.12 Natural gas sub-sector performance report developed and disseminated annually.

1.13 Water and sanitation sector performance report developed and disseminated annually.

1.14 Electricity tariff regulatory tools and methodologies developed and reviewed annually.

1.15 Affordability of regulated services monitored periodically.

1.16 Petroleum pricing formula reviewed periodically.

1.17 Natural gas tariff regulatory tools and methodologies developed and/or reviewed annually.

1.18 Water and sanitation tariff regulatory tools developed and/or reviewed annually. - 42 - STRATEGIC PLAN FOR 2017/18 - 2021/22

1.19 Electricity tariff reviewed periodically.

1.20 Petroleum prices determined and disseminated monthly.

1.21 Natural gas tariff reviewed periodically.

1.22 Natural gas indicative prices determined and disseminated periodically.

1.23 Develop Uniform system of accounts (USoA).

1.24 Water and sanitation tariff reviewed periodically.

1.25 Economic and Financial Performance of regulated utilities monitored annually.

1.26 Water Supply and Sanitation Authorities’ Business Plans reviewed annually.

1.27 Resolution of complaints and disputes between service providers and consumers in the regulated sectors facilitated annually.

1.28 Monitor the implementation of electricity service providers’ Clients Service Charter annually.

1.29 Monitor the implementation of petroleum service providers’ Clients Service Charter annually.

1.30 Monitor the implementation of natural gas service providers’ Clients Service Charter annually.

1.31 Monitor the implementation of water and sanitation service providers’ Clients Service Charter annually.

1.32 Regulated suppliers in the regulated sectors licensed annually.

1.33 Licensing terms and conditions in the regulated sectors enforced annually.

1.34 Electrical installation activities licensed annually.

1.35 Promotional materials for use of modern energy sources prepared and disseminated annually.

1.36 Implementation of the efficient mechanism for procurement of petroleum products monitored annually.

1.37 Implementation of the competitive bidding framework for electricity sub-sector projects monitored annually.

1.38 Mechanisms to monitor competition in the petroleum sub-sector developed and implemented annually.

1.39 Natural Gas Public-Private-Partnership (PPP) frameworks developed and implemented annually.

1.40 Water and sanitation Public-Private-Partnership (PPP) frameworks developed and implemented annually.

1.41 Local content regulatory tools in Natural Gas sub-sector developed and implemented by June, 2022.

1.42 Proposals for policy review in the regulated sectors developed by June, 2020.

1.43 Proposals for legislation review in the regulated sectors developed by June, 2020.

1.44 Proposals for review of standards in the regulated sectors developed by June, 2020. The achievement of Strategic Objective A will be measured through seven (7) outcome indicators which are listed below. (i) Percentage compliance with EWURA’s issued quality orders, standards, rules and guidelines in the regulated sectors (electricity, petroleum, natural gas, water and sanitation). (ii) Percentage level of consumption of natural gas (iii) Percentage in the number of consumer complaints received and timely resolved (as per commitment in CSC) on the quality, accessibility and affordability of the regulated services (electricity, petroleum, natural gas, water and sanitation). (iv) Investors satisfaction level with EWURA’s regulatory interventions in the regulated sectors (electricity, petroleum, natural gas, water and sanitation). - 43 - STRATEGIC PLAN FOR 2017/18 - 2021/22 (v) Trend in the number of modern petrol outlets in rural areas (mobile petrol facilities and rural petrol stations). (vi) Percentage compliance with EWURA’s tariff Order conditions related to increasing coverage of services (network extension-km and new connections). (vii) Cost reflective tariffs of the regulated services (electricity, petroleum, natural gas, water and sanitation). Strategic Objective B: Public Knowledge, Awareness and Understanding of Regulatory Functions in the Regulated Sectors Enhanced. During its ten years of existence EWURA made tremendous efforts to inform and educate key stakeholders on the regulator’s roles and functions. However, awareness creation is a continuous process, So during this planning period, EWURA will strive to develop and implement a proactive IEC programme which should cover all key stakeholders including politicians, senior government officials, and the rural population. Strategies to be taken under Strategic Objective B will be: (i) to revise and implement Information, Education and Communication (IEC) Policy and Strategy; and (ii) to promote access to the Public Register. The Expected Output/targets will be:

2.1 Information, Education and Communication (IEC) Policy and Strategy revised by December, 2018.

2.2 Information, Education and Communication (IEC) Policy and Strategy implemented annually.

2.3 Promote access to the Public Register developed and implemented annually. The achievement of Strategic Objective B will be measured through three (3) outcome indicators which are listed below. (i) Percentage of customers who are aware of EWURA’s functions through IEC programmes. (ii) Trend in the number of visitors to EWURA website. (iii) Trend in the number of visitors to the EWURA’s Public Access Register (PAR). Strategic Objective C: EWURA Functions Effectively and Efficiently Managed. EWURA has recorded notable achievements during the first 10 years of its existence. However, the National Five Year Development Plan (2016/17- 2020/21) calls for doing “business unusual” in improving public service delivery. For that reason, EWURA during the next planning period shall continue to explore innovative ways of conducting its business so that it does better and faster while containing its operational costs. Strategies to be taken under Strategic Objective C will be to (i) take measures to ensure EWURA operates in an appropriate Organization and Salary Structure; (ii) continue Devolving EWURA’s functions; (iii) provide effective and timely regulatory decisions; (iv) implement Performance Management System; (v) provide conducive working environment; (vi) review and implement capacity building programs for Key stakeholders and Staff; (vii) maintain high standards of operational, financial - 44 - STRATEGIC PLAN FOR 2017/18 - 2021/22 and procurement management; (viii) review and implement risk management framework; (ix) deploy modern technology on regulatory and management functions; (x) maintain financial self-sufficiency; (x) develop proposals for revision of policies and legislation; (xi) promote strategic alliances; (xii) strengthen litigation handling procedures; (xiii) implement Occupational Safety and Health Authority (OSHA) requirements, and (xiv) promote staff engagement and involvement in EWURA’s functions. The Expected Output/targets will be:

3.1 Implement the approved organization structure and scheme of service by June 2022.

3.2 Organization structure and scheme of service reviewed by January 2022.

3.3 Competitive staff remuneration and welfare packages reviewed and implemented annually.

3.4 Human Resources retention initiative reviewed and implemented annually.

3.5 Eastern zonal office opened by June, 2018.

3.6 Zonal offices strengthened annually.

3.7 Twelve Ordinary Board meetings convened annually and extraordinary as per requirements.

3.8 GCC meetings convened as per requirements.

3.9 Social Economic Impact Assessment of regulatory decisions to the regulated sectors conducted by June, 2021.

3.10 Quality Management Systems (QMS) implemented annually.

3.11 Fifth Medium Term Strategic Plan developed by December, 2021.

3.12 Client Service Charter (CSC) reviewed by December, 2017 and implemented continuously.

3.13 Annual Plan and Budget developed annually.

3.14 Individual performance evaluation conducted annually.

3.15 Monitoring and Evaluation (M&E) framework for Strategic Plan developed by December, 2018 and implemented annually.

3.16 Annual Work Plan developed and monitored quarterly and annually.

3.17 Quarterly and Annual Performance Reports produced.

3.18 Performance Agreements with Treasury Registrar signed by July, each year.

3.19 Performance Agreements with Treasury Registrar implemented annually.

3.20 Essential working tools and office equipment provided annually.

3.21 Administrative operations managed annually.

3.22 Capacity building programs for Key stakeholders and Staff reviewed and implemented annually.

3.23 Final Accounts prepared by September, annually.

3.24 Statutory audit conducted annually.

3.25 Compliance and operational internal audits conducted annually.

3.26 Compliance with procurement practices maintained annually.

3.27 Risk related to regulatory functions managed annually.

3.28 ICT Policy and Guidelines reviewed by June, 2019 and implemented annually.

3.29 ICT implementation strategy developed and reviewed bi-annually.

3.30 Management Information System for EWURA developed and implemented annually.

3.31 Licensing and Order Information System (LOIS) implemented annually.

3.32 Management and Regulatory Information systems maintained annually.

3.33 Regulatory Information System for electricity sub-sector improved and implemented annually.

3.34 Regulatory Information System for petroleum sub-sector improved and implemented annually. - 45 - STRATEGIC PLAN FOR 2017/18 - 2021/22

3.35 Regulatory Information System for natural gas sub-sector (NPGIS) developed and implemented annually.

3.36 Regulatory Information System for water and sanitation sector improved and implemented annually.

3.37 Financial System improved and implemented annually.

3.38 Data and information system are secured annually.

3.39 Electronic system to improve customer service developed and implemented by June 2018.

3.40 EWURA website reviewed, improved and maintained continuously.

3.41 EWURA documentation centre (Registry) services Improved annually.

3.42 Levy collection rules reviewed and implemented by June, 2018.

3.43 Levy collection mechanisms implemented continuously.

3.44 Alternative financing mechanisms explored by June, 2019.

3.45 CCC, GCC, FCC, FCT and Treasury Contribution disbursed annually.

3.46 National, regional and international institutions involved with the regulated sectors engaged annually.

3.47 Litigation handling procedures strengthened continuously.

3.48 Occupational Safety and Health Authority (OSHA) requirements implemented annually.

3.49 Divisional/ Zonal/ Unit staff meetings conducted at least once in a month.

3.50 Staff meetings conducted at least twice a year.

3.51 Management meetings conducted at least once a month. The achievement of Strategic Objective C will be measured through ten (10) outcome indicators which are listed below: (i) Percentage of customers satisfied with EWURA’s service delivery (ii) Trend in the number of customer complaints against EWURA’s service delivery. (iii) Staff turnover levels (iv) Percentage of revenue collected (v) CAG Audit opinion obtained (vi) External Audit opinion on QMS compliance (vii) High percentage of PPRA Audit rating obtained (viii) Percentage of staff achieving satisfactory performance targets (ix) OSHA inspection opinion obtained (x) Percentage of staff satisfaction levels with EWURA Strategic Objective D: Interventions Against HIV/AIDS, Corruption and Other Cross-Cutting Issues Enhanced. Much as EWURA’s efforts are focused to its core functions, it does not operate in an isolated environment. The government has specific aspirations with regard to cross-cutting issues, such as: combating HIV/AIDS pandemic; combating corruption; gender mainstreaming; combating non- communicable diseases, and combating drug abuse. During the next planning period, EWURA will continue to be responsive to government directives with regard to cross-cutting issues. Strategies to be taken under Strategic Objective D will be to (i) implement the national anti-HIV/AIDS programme; (ii) implement the National Anti-corruption Strategy; (iii) promote staff awareness on - 46 - STRATEGIC PLAN FOR 2017/18 - 2021/22 non-communicable diseases; (iv) implement the national gender mainstreaming strategy; (v) develop and implement staff healthy and fitness programme, and (vi) promote staff awareness on combating drug abuse. The Expected Output/targets will be:

4.1 EWURA anti-HIV/AIDS action plan developed and implemented annually.

4.2 EWURA anti-corruption strategy action plan developed and implemented annually.

4.3 Staff awareness programme on non-communicable diseases, developed and implemented annually.

4.4 Gender mainstreaming policy in EWURA Operations developed and implemented annually.

4.5 Sports and games promoted annually.

4.6 Awareness seminars on nutrition conducted annually.

4.7 Awareness programmes for combating drug and alcohol abuse developed and implemented annually.

4.8 EWURA’s environmental awareness programme developed and implemented annually.

4.9 Environmental Policy developed and implemented annually. The achievement of Strategic Objective D will be measured through three (3) outcome indicators which are listed below. (i) Trend in the number of corruption incidences reported (ii) Percentage of staff satisfaction levels with national cross-cutting agenda. (iii) Trend in gender balance. - 47 - STRATEGIC PLAN FOR 2017/18 - 2021/22 CHAPTER IV MONITORING AND EVALUATION FRAMEWORK This chapter describes the strategy for Monitoring and Evaluating (M&E) framework as in Appendix 2 for EWURA’s medium term strategic plan: July, 2017 to June, 2022. It describes the intended results, together with the principles that will guide and shape the M&E and learning processes to be employed. The M&E framework for the Strategic Plan will track outcomes related to four strategic objectives adopted in the plan as follows: (a) Are there improvements in EWURA’s regulatory functions with regard to the quality, availability and affordability of the regulated services? (b) Is there increased public knowledge, awareness and understanding of EWURA’s regulatory functions? (c) Are there improvements in how EWURA manages its functions?, and (d) How is EWURA performing with regard to interventions against cross-cutting issues? These four issues will be tracked by using 23 indicators that encompass the outcome indicators that will be used to monitor and evaluate implementation of the Fourth Medium Term Strategic Plan: July 2017-June, 2022. Appendix 2 includes the details on the outcome indicators, the indicator description, data source/contact person, the data collection method and frequency, baseline data and annual targets for each indicator. Data for the key performance indicators will be collected from secondary sources as well as through response surveys. Most data will be largely drawn from existing EWURA information sources within the sector specific data on regulatory functions and cross cutting Departments and Units. This data will be collected and reported on a quarterly or annual basis. Information will be collected at the service delivery level during normal and/or ad hoc inspections. Perception information from key stakeholders and the Public will be collected through surveys conducted once after every two or three years with stakeholder samples randomly selected country wise. Studies and surveys will be conducted by qualified professionals through outsourcing. For the M&E Framework described above to be effective, it has to be demand driven. This is in order to ensure that both management and Board decisions are evidence based. Additionally there should be a strong M&E management arrangement. The M&E focal department in EWURA will be DRE with each Department or Unit having a focal M&E person. The departmental/unit M&E focal persons will form the EWURA M&E Working Group and will meet at least quarterly to check validity of all M&E data. The M&E working group will also trace implementation of the Strategic Plan of the planned strategic objectives and strategies into a results chain that consists of inputs, activities (or processes), outputs and outcomes framework. An excel spreadsheet will be developed to accommodate Appendix 2. - 48 - STRATEGIC PLAN FOR 2017/18 - 2021/22 CHAPTER V FINANCING PLAN Financial budget comprises of income and expenditure projections. Projections have been prepared in accordance with the requirement of EWURA Act, Cap. 414 and objectives to be achieved during the planned period. The revenue projections were calculated based on the assumption that the regulatory levy growth will be 7.3%, which is the same as the projected GDP growth rate, while projections for license fees, application fees and other income is based on past collection trends. Expenditure was calculated based on the assumption that inflation will grow by 4.5% for all activities and will be conducted in accordance with the timeline. The revenue and expenditure budget for the period of 2017/18-2021/22 is summarised in the Table 11. Table 11: Summary of Projected Revenue and Expenditure for 2017/18-2021/22 2017/18 2018/19 2019/20 2020/21 2021/22 TZS’000’ TZS’000’ TZS’000’ TZS’000’ TZS’000’ REVENUE: Revenue from Non - - Exchange Transactions: Regulatory Levy 45,210,758 48,097,926 51,209,522 54,565,303 58,186,878 License Fees 742,329 796,519 854,665 917,056 984,001 Application Fees 112,965 121,211 130,060 139,554 149,741 Penalties 962,000 770,000 616,400 493,520 395,216 Total Revenue 47,028,052 49,785,656 52,810,647 56,115,433 59,715,836 EXPENDITURE: Staff Costs 19,726,641 21,339,110 22,714,671 24,186,383 25,760,970 Operating Expenditure 10,780,643 11,120,316 12,021,631 12,669,330 13,094,598 Contributions to Treasury and other Government 10,439,945 11,079,291 11,574,538 12,092,071 12,632,893 Entities Administrative costs 4,599,243 4,801,326 5,012,503 5,233,184 6,520,270 Finance and Other Charges 280,228 293,466 306,671 320,472 334,893 Depreciation and 659,401 689,075 720,083 752,487 786,349 Amortization Total Expenditure 46,486,101 49,322,584 52,350,097 55,253,927 59,129,973 Surplus/(Deficit) 541,951 463,072 460,550 861,506 585,863 The projected financial position for the next financial years is as elaborated in the Table 12. - 49 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Table 12: Projected Balance Sheet of Financial Position for 2017/18 - 2021/22 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 30-Jun-22 TZS’000 TZS’000 TZS’000 TZS’000 TZS’000 ASSETS Non-Current Assets Property , Plant and 8,075,896 7,819,902 9,251,130 10,074,550 11,464,458 Equipment Intangible Assets 26,407 18,485 12,939 9,058 6,340 Total Non-Current Assets 8,102,303 7,838,387 9,264,069 10,083,608 11,470,798 Current Assets Stock Consumables 128,888 135,602 135,603 138,587 141,358 Trade and Other Receivables 10,282,152 10,062,579 8,852,981 8,706,094 7,626,703 Cash and Cash Equivalents 2,013,825 2,646,819 2,773,555 2,871,488 2,918,276 Total Current Assets 12,424,865 12,845,000 11,762,139 11,716,169 10,686,337 Total Assets 20,527,168 20,683,387 21,026,208 21,799,777 22,157,135 EQUITY AND LIABILITIES Capital and Reserves Retained Surplus 8,167,738 8,630,810 9,091,360 9,952,866 10,538,729 Total Capital and Reserves 8,167,738 8,630,810 9,091,360 9,952,866 10,538,729 Non- Current Liabilities Gratuity Payable 1,229,415 1,256,462 1,570,578 1,586,284 1,665,598 Current Liabilities Trade and other Payables 11,130,015 10,796,115 10,364,270 10,260,627 9,952,808 Total Liabilities 12,359,430 12,052,577 11,934,848 11,846,911 11,618,406 TOTAL EQUITY AND 20,527,168 20,683,387 21,026,208 21,799,777 22,157,135 LIABILITIES - 50 - STRATEGIC PLAN FOR 2017/18 - 2021/22 CHAPTER VI FORCE FIELD ANALYSIS This chapter describes the driving and restraining forces that may support or constrain the achievement of the Strategic Plan. The driving forces are those that may contribute positively to the successful attainment of the desired vision, whilst the restraining forces are those that may cause a major block to the driving forces and to the attainment of the desired goal. EWURA will develop a Risk Management Program to sustain the bridges while instituting measures to contain the effects of barriers on an annual basis and conduct risk audit. Table 13: Supporting Forces (Bridges) Supporting Forces (Bridges) Strong Medium Weak Effective leadership abilities within the Regulator (both at Board and √ Management levels) to guide towards the overall achievement of the vision and mission. EWURA currently is one of the best performing Regulators in Africa √ since its inception. Collaboration with and support of stakeholders including Ministry of √ Water and Irrigation, Ministry of Energy and Minerals, and other key stakeholders. Collaboration with regional and international Regulatory √ Associations and bodies which has led to achieving high benchmarked scores. An Independent Regulator with sufficient legal authority and √ institutional frameworks. Clearly defined overall regulated sector policies and their corresponding legal frameworks. √ The Government accords high priority to all the regulated sectors √ in its medium term national development policy and planning frameworks. Professional and experienced staff in all divisions/units in EWURA. √ General willingness to pay for regulatory services √ A robust growing Tanzanian economy. √ Developments in IT has potential in improving the way the √ Regulator operates and provides services to its customers. - 51 - STRATEGIC PLAN FOR 2017/18 - 2021/22 Table 14: Restraining Forces (Barriers) Restraining Forces (Barriers) Strong Medium Weak Limited resources for expanding the reach of EWURA across the √ country hence being forced to extend to zonal level. Problems in mind-set shifts from the old paradigm on regulatory √ functions being conducted by Government departments. Salary scale capping in the public service may make the Authority √ less competitive in attracting and retaining highly skilled personnel. Government’s cost-cutting measures may impact the Regulator’s √ capacity in building programmes. Staff workloads accord no time for physical activities leading to risk √ of sedentary work related diseases. Regulating public owned and monopoly utilities eg. TANESCO √ and Water Supply and Sanitation utilities. Some of the customers/stakeholders perceiving the Authority as a √ pricing commission which may tarnish the Regulator’s image. The bureaucratic process for the regulated entities acquiring EIA √ certificates. EWURA operating from rented premises both at Headquarters and √ Zones which raises the Regulator’s operational costs. - 52 - STRATEGIC PLAN FOR 2017/18 - 2021/22 CHAPTER VII QUICK-WINS In this chapter “quick wins” were identified. These are activities which need to be implemented in the short term (the first plan year - 2017/2018) to enable EWURA successfully implement its five year strategic plan. The identified “quick wins” are to: (i) finalize the Monitoring and Evaluation Results Matrix by developing baseline data and their associated annual targets by December, 2017; (ii) conduct a study on affordability of the regulated services’ tariffs by June, 2018; (iii) acquire office space in Dodoma for establishment of EWURA Headquarters offices by June; 2018; (iv) strengthen customer services’ desk by June, 2018; (v) migrate personnel evaluation from OPRAS to Balance Score Card by June, 2018; (vi) review service commitments in EWURA’s Client Service Charter by December, 2017; (vii) translate developed regulatory tools by the technical divisions into Kiswahili by June, 2018; (viii) develop and launch Natural Gas Information System (NGIS) by June, 2018; (ix) develop a proposal for review of the petroleum and natural gas sub-sectors legislation by June, 2018; (x) develop and launch an integrated Information Management System (IMS) for finance, HR and regulatory systems by June, 2018; and (xi) review levy determination mechanism in the petroleum sub-sector which is currently 0.003% for petroleum sub-sector while other sectors’ average is 0.01% of gross cost of service by June, 2018. - 53 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 54 - STRATEGIC PLAN FOR 2017/18 - 2021/22 APPENDICES - 55 -

APPENDIX 1 EWURA’s MEDIUM TERM STRATEGIC MATRIX 2017/18-2021/22 - 56 - STRATEGIC PLAN FOR 2017/18 - 2021/22 STRATEGIC PLAN FOR 2017/18 - 2021/22 - 57 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 58 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 59 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 60 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 61 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 62 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 63 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 64 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 65 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 66 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 67 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 68 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 69 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 70 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 71 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 72 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 73 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 74 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 75 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 76 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 77 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 78 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 79 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 80 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 81 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 82 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 83 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 84 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 85 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 86 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 87 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 88 -

APPENDIX 2 EWURA’s RESULTS MATRIX FOR THE STRATEGIC PLAN (2017/18-2021/22) S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL A Quality, (i) Percentage This indicator Information will Technical Quarterly The KPI’s 100% 100% 100% 100% 100% Availability compliance measures be collected Divisional compliance Baseline Value and with EWURA’s EWURA’s ability from inspection Directors monitoring for Electricity Affordability issued quality to enforce and monitoring (DoE, DP, reports Su-sector to be of Regulated orders, compliance activities. DNG and determined by Services standards, on quality of DWS) December 2017 Improved rules and services. The Compliance 100% 100% 100% 100% 100% guidelines in higher the of petroleum the regulated percentage facilities to sectors the higher the infrastructure (electricity, compliance and standards is STRATEGIC PLAN FOR 2017/18 - 2021/22 petroleum, vice versa. 73% natural gas, Compliance 100% 100% 100% 100% 100% water and of petroleum sanitation) operators to the - 89 - cap prices is 99% Compliance 100% 100% 100% 100% 100% of petroleum products to the quality standards is 94% Compliance 100% 100% 100% 100% 100% of petroleum facilities to marker tests is 95% The KPI’s 100% 100% 100% 100% 100% Baseline Value for Natural Gas Su-sector to be determined by December 2017 The KPI’s 100% 100% 100% 100% 100% Baseline Value for Water and Sanitation Sector to be determined by December 2017 S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (ii) Percentage This indicator This DNG Information will 28.9% 30.4% 31.9% 33.5% 35.1% 36.9% level of measures information will be collected consumption EWURA’s ability be collected annually. of natural gas. to access natural from DNG’s gas services. records. The higher the percentage the higher the accessibility and vice versa. (iii) Percentage in This indicator Complaints DLS Complaints The KPI’s the number measures register register, Baseline Value of consumer EWURA’s quarterly reports for Electricity complaints ability to Sub-sector to received enforce quality, be determined and timely accessibility by December resolved and affordability 2017 (as per of services. commitment The higher the in CSC) on percentage, The KPI’s the quality, the better the Baseline Value - 90 - accessibility Regulator’s for Petroleum and ability to enforce Sub-sector to affordability of quality, and vice be determined the regulated versa. by December services 2017 (electricity, petroleum, natural gas, The KPI’s water and Baseline Value sanitation) for Natural Gas sub-sector to be determined by December 2017 The KPI’s Baseline Value for Water and Sanitation Sector to be determined by December 2017 STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (iv) Investor This indicator Information DRE will use Information will The KPI’s satisfaction measures will be to select the be collected Baseline Value level with EWURA’s collected from sample and analyzed for Electricity EWURA’s ability to attract questionnaires from Tanzania Sub-sector to regulatory investments in administered Investment be determined interventions the regulated to a sample Centre’s records by December in the sectors. The of both by a consultant 2017 regulated high the existing and and study sectors satisfaction level, prospective repeated after (electricity, the better and investors. three years The KPI’s petroleum, vice versa. Baseline Value natural gas, for Petroleum water and Sub-sector to sanitation) be determined by December 2017 STRATEGIC PLAN FOR 2017/18 - 2021/22 The KPI’s Baseline Value - 91 - for Natural Gas Sub-sector to be determined by December 2017 The KPI’s Baseline Value for Water and Sanitation sector to be determined by December 2017 S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (v) Trend in the This indicator This DP Information will The KPI’s number of measures information will be collected Baseline modern rural EWURA’s ability be collected quarterly. Value to be petrol outlets to facilitate from DP’s determined by (mobile petrol availability of records. December 2017 pumps and petrol in the rural petrol rural areas. stations). The higher the number of modern petrol outlets, the better and vice versa. (vi) Percentage This indicator This DWS Information will 67.0% 70% 75% 80% 85% 85% compliance measures information will be collected - 92 - with key EWURA’s ability be collected quarterly. performance to facilitate from DWS’s indicators in access in the records. the water and water sector. sanitation The higher sector as the number of defined in investments, the EWURA’s better and vice Performance versa. Benchmarking Guidelines for Water and Sanitation Services. (vii) Percentage This indicator This DWS Information will 61% 65% 70% 75% 80% 85% compliance measures information will be collected with EWURA’s ability be collected quarterly. EWURA’s to facilitate from DWS’s tariff Order access in the records. conditions water sector. for water and The higher sanitation the number of services investments, the better and vice versa. STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (viii) Affordability This indicator This DRE Information will The KPI’s of the measures information will be collected Baseline Value regulated EWURA’s ability be collected and analyzed for Electricity services to make tariffs through a in a study Sub-sector to (electricity, affordable. study on conducted after be determined petroleum, The higher the affordability of every three by December natural gas, percentage, the the regulated years. 2017 water and more affordable services’ tariffs The KPI’s sanitation) and vice versa. administered Baseline Value to a sample of for Petroleum consumers. Sub-sector to be determined by Dec. 2017 The KPI’s Baseline Value STRATEGIC PLAN FOR 2017/18 - 2021/22 for Natural Gas Sub-sector to be determined by December - 93 - 20172017 The KPI’s Baseline Value for Water and sanitation sector to be determined by December 20172017 B Public (ix) Percentage The indicator Information will MCPR Information will The KPI’s Knowledge, of customers measures be collected be collected Baseline Awareness who are EWURA’s efforts from a Survey and analyzed Value to be and Under- aware of to educate in a survey determined by standing EWURA’s the Public conducted after December 2017 of the functions on EWURA’s every two years. Regulatory through IEC functions Functions in programmes through IEC the Regulated materials. Sectors Enhanced S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (x) Trend in the The indicator Information will MCPR Information will The KPI’s number of measures be collected be collected Baseline visitors to Public interest from Website and analyzed Value to be EWURA on EWURA’s quarterly. determined by website. activities. A December 2017 positive trend will indicate there is increased interest in EWURA’s activities and vice versa. (xi) Trend in the The indicator Information will DCA Information will The KPI’s 50 60 80 100 100 number of measures be collected be collected Baseline visitors to Public interest from Public and analysed Value to be - 94 - the EWURA’s on EWURA’s Access quarterly. determined by Public Access activities. A Register December 2017 Register (PAR) positive trend will indicate there is increased interest in EWURA’s activities and vice versa. C EWURA’s (xii) Percentage This indicator Information will MCPR Information will The KPI’s Functions of customers measures be collected be collected Baseline Efficiently and satisfied with customer’ from Customer and analyzed Value to be Effectively EWURA’s satisfaction Satisfaction in a survey determined by Managed service levels with Survey conducted after December 2017 delivery EWURA’s service every two years. delivery. High satisfaction levels indicate that customers are satisfied with EWURA and vice versa. STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (xiii) Trend in the This indicator Information will MCPR Information will The KPI’s number of measures be collected be collected Baseline customer consumer from EWURA’s and analyzed Value to be complaints perceptions customer quarterly. determined by against of excellency service records December 2017 EWURA’s in service service provision. delivery. Increased consumer complaints indicate deterioration of service delivery. (xiv) Staff turnover This indicator Information will DCA Information will 2.9% 2% 2% 2% 2% 2% levels measures be collected be collected STRATEGIC PLAN FOR 2017/18 - 2021/22 EWURA’s from EWURA’s and analyzed ability to retain Human annually. managerial & Resource professional Records staff. Low turnovers - 95 - indicate that competitors are unable to poach skilled personnel and vice versa. (xv) Percentage This indicator Information will DCA Information will The KPI’s 100% 100% 100% 100% 100% of revenue measures be obtained be collected Baseline collected EWURA’s from EWURA’s and analyzed Value to be ability to collect financial annually. determined by revenues against records. December 2017 set targets. (xvi) CAG Audit This indicator Information will DCA Information will Clean Audit Clean Clean Clean Clean Clean opinion measures be collected be obtained Opinion obtained EWURA’s from CAG annually. compliance with report and value for money, opinion. fit for purpose, and legal requirements in its operations. Clean audit opinion indicates high compliance and vice versa. S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (xvii) External This indicator Information will MR Information will Complied Audit opinion measures be collected be obtained on QMS EWURA’s from QMS annually. Complied Complied Complied Complied Complied compliance compliance with External QMS standards. Auditor’s report Compliance and opinion. indicates EWURA’s ability to adhere to QMS standards and vice versa. (xviii) Percentage This indicator Information will MPM Information will 81.1% 100% 100% 100% 100% 100% of PPRA measures be collected be obtained Audit rating EWURA’s from PPRA annually. obtained compliance with audit report Procurement Act requirements in its operations. - 96 - (xix) Percentage This indicator Information will DCA Information will 95% 100% 100% 100% 100% 100% of staff measures be collected be obtained achieving EWURA’s Staff from personnel annually. satisfactory accountability. assessment performance High levels of reports. targets performance indicate increased accountability within EWURA. (xx) OSHA This indicator Information will DCA Information will Complied inspection measures be collected be obtained opinion EWURA’s ability from OSHA annually. Complied Complied Complied Complied Complied obtained to comply with inspection OSHA. reports. STRATEGIC PLAN FOR 2017/18 - 2021/22 S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (xxi) Percentage This indicator Information will DCA Information will 62% of staff measures be collected be collected satisfaction EWURA’s ability from staff and analyzed levels with to attract and satisfaction in a survey EWURA retain staff. survey. conducted after The higher the every two years. percentage, the better and vice versa. D Interventions (xxii) Trend in the This indicator Information will Chairperson Information will 0 0 0 0 0 0 Against number of measures be collected – Integrity be obtained Cross-Cutting corruption EWURA’s ability from the Committee annually. Issues incidences to combat Integrity Enhanced reported corruption. Committee’s The lower the records. STRATEGIC PLAN FOR 2017/18 - 2021/22 number, the higher the ability, and vice versa (xxiii) Percentage This indicator Information will DCA Information will The KPI’s 100% 100% 100% 100% 100% - 97 - of staff measures staff be collected be obtained Baseline satisfaction perception on through self- annually. Value to be levels with EWURA’s ability administered determined by national to address questionnaires December 2017 cross- national cross- (HIV/AIDS, cutting cutting agenda. Anti-corruption agendas. The higher the action plan, levels the better gender, non- and vice versa. communicable diseases, health and fitness programmes, and anti-drug abuse). S/N OBJECTIVE OUTCOME INDICATOR DATA CONTACT DATA BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 INDICATOR DESCRIPTION SOURCE PERSON COLLECTION DATA METHOD & FREQUENCY TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL (xxiv) Trend in This indicator Information will Gender Focal Information will 100%. 100% 100% 100% 100% 100% gender measures be collected Person be obtained balance EWURA’s ability from Gender annually. to achieve Focal Person national records. aspirations on gender balance. - 98 - STRATEGIC PLAN FOR 2017/18 - 2021/22

APPENDIX 3 COST PROJECTIONS FOR EWURA’S FIVE YEAR STRATEGIC PLAN (2017/18-2021/22) 2017/18 2018/19 2019/20 2020/21 2021/22 TZS A: QUALITY, AVAILABILITY AND AFFORDABILITY OF REGULATED SERVICES IMPROVED A01 Electricity quality of services regulatory tools developed and 105,267,703 107,875,125 110,599,880 113,447,250 116,422,751 reviewed annually A02 Petroleum quality of services regulatory tools developed and 27,900,000 28,102,500 28,314,113 28,535,248 28,766,334 reviewed annually A03 Natural gas quality of services regulatory tools developed and 88,320,000 105,086,400 106,305,288 107,579,026 108,910,082 reviewed annually A04 Water and sanitation quality of services regulatory tools 117,455,000 119,194,250 121,011,766 122,911,071 124,895,844 STRATEGIC PLAN FOR 2017/18 - 2021/22 developed and reviewed annually A05 Compliance monitoring in the electricity sub-sector conducted 260,055,000 261,202,500 262,401,638 263,654,736 264,964,224 annually - 99 - A06 Compliance monitoring in the petroleum sub-sector conducted 1,720,245,000 1,746,475,500 1,773,886,373 1,802,530,734 1,832,464,092 annually A07 Compliance monitoring in the natural gas sub-sector conducted 172,409,160 177,494,572 182,808,828 188,362,225 194,165,525 annually A08 Compliance monitoring in the water and sanitation sector 372,323,333 373,656,833 375,050,341 376,506,556 378,028,301 conducted annually A09 Electricity sub-sector performance report developed and 15,375,000 15,408,750 15,444,019 15,480,875 15,519,389 disseminated by December annually A10 Petroleum sub-sector performance report developed and 24,625,000 25,075,000 25,545,250 26,036,661 26,550,186 disseminated by December annually A11 Natural gas sub-sector performance report developed and 0 0 44,948,250 46,422,484 47,963,058 disseminated by December annually A12 Water and sanitation sector performance report developed and 144,212,500 146,426,500 148,740,130 151,157,873 153,684,415 disseminated by December annually A13 Electricity tariff regulatory tools and methodologies developed 22,250,000 22,520,000 186,605,900 23,096,997 202,282,902 and reviewed annually 2017/18 2018/19 2019/20 2020/21 2021/22 A14 Petroleum pricing formula reviewed periodically 15,750,000 15,750,000 180,105,900 15,750,000 194,627,790 A15 Natural gas tariff regulatory tools developed and reviewed 14,280,000 14,571,600 14,876,322 15,194,756 15,527,521 annually A16 Water and sanitation tariff regulatory tools developed and 0 0 0 207,965,909 216,593,125 reviewed annually A17 Electricity tariff reviewed periodically 29,284,167 29,806,354 30,352,040 30,922,282 31,518,185 A18 Petroleum prices determined and disseminated periodically 67,000,000 0 0 0 0 A19 Natural gas tariff reviewed periodically 21,887,500 22,254,250 22,637,504 23,038,004 23,456,527 A20 Natural gas indicative prices determined and disseminated 0 0 0 0 0 periodically A21 Water and sanitation tariff reviewed periodically 338,109,167 348,301,292 358,952,062 370,082,118 381,713,025 A22 Uniform System of Accounts (USoA) developed and 13,687,500 0 0 0 0 implemented by June, 2020. A23 Economic and Financial Performance of regulated utilities 0 0 0 0 0 monitored annually A24 Water Supply and Sanitation Authorities’ Business Plans reviewed 30,850,000 31,804,000 32,800,930 33,842,722 34,931,394 - 100 - annually A25 Resolution of complaints and disputes between service providers 369,925,000 374,404,750 379,086,089 383,978,088 389,090,227 and consumers in the regulated sectors facilitated annually A26 Monitor the implementation of electricity service providers’ 0 7,312,500 0 0 0 Clients Service Charter annually A27 Monitor the implementation of petroleum service providers’ 11,812,500 12,015,000 12,226,613 12,447,748 12,678,834 Clients Service Charter annually A28 Monitor the implementation of natural gas service providers’ 11,040,000 11,185,800 11,338,161 11,497,378 11,663,760 Clients Service Charter annually A29 Monitor the implementation of water and sanitation service 21,600,000 21,924,000 22,262,580 22,616,396 22,986,134 providers’ Clients Service Charter annually A30 Affordability of regulated services monitored periodically. 46,500,000 0 0 53,064,225 0 A31 Regulated suppliers in the regulated sectors licensed annually 0 0 0 0 0 A32 Licensing terms and conditions in the regulated sectors enforced 5,320,000 5,320,000 5,320,000 5,320,000 5,320,000 annually STRATEGIC PLAN FOR 2017/18 - 2021/22 2017/18 2018/19 2019/20 2020/21 2021/22 A33 Electrical installation activities licenced annually. 173,597,550 177,672,640 181,931,109 186,381,208 191,031,563 A34 Promotional materials for use of modern energy sources 0 0 0 0 0 prepared and disseminated annually A35 Implementation of the efficient mechanism for procurement of 0 0 0 0 0 petroleum products monitored annually. A36 Implementation of the competitive bidding framework for 0 0 0 0 0 electricity sub-sector projects monitored annually. A37 Mechanisms to monitor competition in the petroleum sub-sector 0 0 0 0 0 developed and implemented annually A38 Natural Gas Public-Private-Partnership (PPP) frameworks 11,040,000 11,185,800 11,338,161 11,497,378 11,663,760 developed and implemented annually A39 Water and sanitation Public-Private-Partnership (PPP) frameworks 12,680,000 12,815,000 12,956,075 13,103,498 13,257,556 developed and implemented annually STRATEGIC PLAN FOR 2017/18 - 2021/22 A40 Investors’ Satisfaction in the regulated sectors monitored 0 47,087,700 0 51,420,946 0 periodically. A41 At least three local content regulatory tools developed and 83,120,000 33,557,400 88,615,733 34,492,135 94,617,211 - 101 - reviewed by June, 2022. A42 Proposals for policy review in the regulated sectors developed by 0 0 0 0 0 June, 2021 A43 Proposals for legislation review in the regulated sectors 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 developed by June, 2021 A44 Proposals for review of standards in the electricity sub-sector 0 0 5,759,540 5,799,345 5,840,940 developed by June, 2020. A45 Proposals for review of standards in the petroleum sub-sector 0 0 5,759,540 5,799,345 5,840,940 developed by June, 2020. A46 Proposals for review of standards in the natural gas sub-sector 8,790,000 8,834,550 8,881,105 8,929,754 8,980,593 developed by June, 2020. A47 Proposals for review of standards in the water and sanitation 0 0 5,759,540 5,799,345 5,840,940 sector developed by June, 2020. Sub-Total 4,374,261,080 4,331,870,566 4,790,170,778 4,792,214,314 5,189,347,128 B: PUBLIC KNOWLEDGE, AWARENESS AND UNDERSTANDING OF REGULATORY FUNCTIONS IN THE REGULATED SECTORS ENHANCED 2017/18 2018/19 2019/20 2020/21 2021/22 B01 Information, Education and Communication (IEC) Policy and 67,437,500 117,387,500 73,419,125 127,965,774 79,951,209 Strategy revised by December, 2018 B02 Information, Education and Communication (IEC) Policy and 2,437,060,000 2,546,120,200 2,660,088,109 2,779,184,574 2,903,640,380 Strategy implemented annually B03 Measures to promote access to the Public Register developed 20,655,000 21,495,600 22,374,027 23,291,983 24,251,247 and implemented annually Sub-Total 2,525,152,500 2,685,003,300 2,755,881,261 2,930,442,331 3,007,842,836 C: EWURA FUNCTIONS EFFECTIVELY AND EFFICIENTLY MANAGED C01 Implement the approved organisation structure and scheme of 78,190,000 78,190,000 78,190,000 78,190,000 78,190,000 service by June 2022 C02 Organization structure and scheme of service reviewed by 0 0 12,187,500 0 0 January 2022 C03 Competitive staff remuneration and welfare packages reviewed 19,619,926,278 21,230,027,181 22,603,114,004 24,072,240,488 25,644,125,972 and implemented annually C04 Human Resources retention initiative reviewed and implemented 7,312,500 7,312,500 7,312,500 7,312,500 7,312,500 - 102 - annually C05 Essential working tools and office equipment provided annually 1,078,332,892 1,122,155,372 1,172,652,363 1,225,421,720 1,280,565,697 C06 Administrative operations managed annually 4,923,491,120 5,145,048,221 5,376,575,390 5,618,521,283 5,871,354,741 C07 EWURA Headquarter functions transferred from Dar es Salaam to 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000 1,056,475,268 Dodoma by June, 2019. C08 Eastern zonal office opened by June, 2018 0 0 0 0 0 C09 Zonal offices strengthened by 2020 annually 14,800,000 15,070,000 15,352,150 15,646,997 15,955,112 C10 Twelve Ordinary Board meetings convened annually and 122,400,000 122,400,000 122,400,000 122,400,000 122,400,000 extraordinary as per requirements C11 GCC meetings convened as per requirements 105,400,000 106,822,000 108,307,990 109,860,850 111,483,588 C12 Social Economic Impact Assessment of regulatory decisions to 0 0 173,553,750 180,924,919 0 the regulated sectors conducted by June, 2021 C13 Quality Management Systems (QMS) implemented annually 125,048,780 127,983,400 131,050,078 134,254,757 137,603,646 C14 Fifth Medium Term Strategic Plan developed by December, 2021 0 0 0 0 216,593,125 STRATEGIC PLAN FOR 2017/18 - 2021/22 2017/18 2018/19 2019/20 2020/21 2021/22 C15 Client Service Charter (CSC) reviewed by December, 2017 and 4,875,000 4,875,000 4,875,000 4,875,000 4,875,000 implemented annually. C16 Annual Plan and Budget developed annually 24,375,000 24,375,000 24,375,000 24,375,000 24,375,000 C17 Individual performance evaluation conducted annually 0 0 0 0 0 C18 Monitoring and Evaluation (M&E) framework for Strategic Plan 9,750,000 9,750,000 58,891,125 9,750,000 63,413,337 developed by December, 2018 and implemented annually C19 Annual Work Plan developed and monitored quarterly and 9,750,000 9,750,000 9,750,000 9,750,000 9,750,000 annually C20 Quarterly and Annual Performance Reports produced annually 51187500 51187500 51187500 51187500 51187500 C21 Performance Agreements with Treasury Registrar signed by July, 2,437,500 2,437,500 2,437,500 2,437,500 2,437,500 annually C22 Performance Agreements with Treasury Registrar implemented 12,187,500 12,187,500 12,187,500 12,187,500 12,187,500 annually STRATEGIC PLAN FOR 2017/18 - 2021/22 C23 Capacity building programs for Key stakeholders and Staff 1,040,466,639 1,074,924,881 1,110,933,744 1,148,563,006 1,187,885,585 reviewed and implemented annually - 103 - C24 Final Accounts prepared by September, annually 146,110,000 148,090,000 150,159,100 152,321,310 154,580,818 C25 Statutory audit conducted annually 166,187,500 171,362,500 176,770,375 182,421,604 188,327,139 C26 Compliance and operational internal audits conducted annually 51,025,000 51,379,375 51,749,697 52,136,683 52,541,084 C27 Compliance with procurement practices maintained annually 108,500,000 108,500,000 108,500,000 108,500,000 108,500,000 C28 Risk register updated annually 14,625,000 14,625,000 14,625,000 14,625,000 14,625,000 C29 ICT Policy and Guidelines reviewed by June, 2019 and 9,750,000 9,750,000 9,750,000 9,750,000 9,750,000 implemented annually C30 ICT implementation strategy developed and reviewed bi- 5,850,000 0 5,850,000 0 5,850,000 annually C31 Management Information System for EWURA developed and 231,700,000 242,126,500 253,022,193 264,408,191 276,306,560 implemented annually C32 Licensing and Order Information System (LOIS) implemented 7,312,500 7,312,500 7,312,500 7,312,500 7,312,500 annually C33 Management and Regulatory Information systems maintained 290,006,374 303,056,661 316,694,211 536,355,353 560,491,344 annually 2017/18 2018/19 2019/20 2020/21 2021/22 C34 Regulatory Information System for electricity sub-sector 0 0 72,834,000 0 0 improved and implemented annually C35 Regulatory Information System for petroleum sub-sector 7,312,500 7,312,500 7,312,500 7,312,500 7,312,500 improved and implemented annually C36 Regulatory Information System for natural gas sub-sector 0 0 0 0 0 developed and implemented annually C37 Regulatory Information System for water and sanitation sector 0 0 0 75,782,468 0 improved and implemented annually C38 Financial System improved and implemented annually 0 0 0 75,782,468 0 C39 Data and information system are secured annually 220,000,000 229,900,000 240,245,500 251,056,548 262,354,092 C40 Electronic system to improve customer service developed and 0 0 0 75,782,468 0 implement by June 2018 C41 EWURA website reviewed, improved and maintained annually 0 0 0 0 0 C42 EWURA Records Office services Improved annually 40,195,000 41,565,025 42,996,701 44,492,803 46,056,229 C43 Levy collection rules reviewed and implemented by June, 2018 7,350,000 7,417,500 7,488,038 7,561,749 7,638,778 - 104 - C44 Levy collection mechanisms implemented annually 26,187,500 26,187,500 26,187,500 26,187,500 26,187,500 C45 Alternative financing mechanisms explored by June, 2019 0 8,880,000 0 0 0 C46 CCC, FCC, FCT and Treasury Contribution disbursed annually 10,334,545,135 10,972,468,791 11,466,229,886 11,982,210,231 12,521,409,692 C47 National, regional and international institutions involved with the 895,407,218 909,488,776 928,788,816 948,957,357 970,033,484 regulated sectors engaged annually C48 Litigation handling procedures strengthened annually 113,200,000 113,470,000 113,752,150 114,046,997 114,355,112 C49 Occupational Safety and Health Authority (OSHA) requirements 8,525,000 8,908,625 9,309,513 9,728,441 10,166,221 implemented annually C50 Divisional/Zonal/Unit staff meetings conducted at least once in a 0 0 0 0 0 month C51 Staff meetings conducted at least twice a year 0 47,025,000 0 51,352,476 0 C52 Management meetings conducted at least once a month 0 0 0 0 0 Sub-Total 41,913,719,435 44,573,322,308 47,084,910,774 49,825,983,664 51,241,969,121 D: INTERVENTIONS AGAINST HIV/AIDS, CORRUPTION AND OTHER CROSS-CUTTING ISSUES ENHANCED STRATEGIC PLAN FOR 2017/18 - 2021/22 2017/18 2018/19 2019/20 2020/21 2021/22 D01 EWURA anti-HIV/AIDS action plan developed and implemented 11,112,503 11,612,566 12,135,131 12,681,212 13,251,867 annually D02 EWURA anti-corruption strategy action plan developed and 43,750,000 44,706,250 45,705,531 46,749,780 47,841,020 implemented annually D03 Staff awareness programme on non-communicable diseases, 21,250,000 22,206,250 23,205,531 24,249,780 25,341,020 developed and implemented annually. D04 Gender Mainstreaming policy in EWURA Operations developed 10,637,500 10,918,750 11,212,656 11,519,788 11,840,741 and implemented annually D05 Sports and games promoted annually 47,750,000 49,898,750 52,144,194 54,490,682 56,942,763 D06 Awareness seminars on nutrition conducted annually 6,250,000 6,531,250 6,825,156 7,132,288 7,453,241 D07 Awareness programmes for combating drug abuse developed 6,250,000 6,531,250 6,825,156 7,132,288 7,453,241 and implemented annually D08 EWURA’s enviromental awareness programme developed and 6,250,000 6,531,250 6,825,156 7,132,288 7,453,241 STRATEGIC PLAN FOR 2017/18 - 2021/22 implemented annually D09 Environmental policy developed and implemented annually 6,250,000 6,531,250 6,825,156 7,132,288 7,453,241 - 105 - Sub-Total 159,500,003 165,467,566 171,703,669 178,220,396 185,030,377 GRAND TOTAL 48,972,633,018 51,755,663,739 54,802,666,481 57,726,860,705 59,624,189,462 STRATEGIC PLAN FOR 2017/18 - 2021/22 - 106 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 107 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 108 - STRATEGIC PLAN FOR 2017/18 - 2021/22 - 109 - Plot 11&12 Block D, Along New Bagamoyo Road, Opp. Makumbusho Village, Kijitonyama, 7th Floor, LAPF Pensions Fund Towers, P.O. Box 72175, Dar es Salaam - Tanzania. Tel: +255 (0) 22 292 3513-18 Fax: +255 (0) 22 292 35190 E-mail: info@ewura.go.tz www.ewura.go.tz