Malindi water utility contract

concluded

In 1999, the local government of Malindi signed a five year management contact with German H.P. Gauff Ingenieure GmbH Co. for the operation of its water utility. Malindi municipality was located on the Indian Ocean about 120 km North of Mombassa had had a considerable number of tourists. Malindi was the 12th largest town in Kenya with a total population of 140,000 people in 1999. The management contract was granted after a first private sector experience with a service contract signed in 2005 and which lasted for 3.5 years. The service contract, which as pilot to test the impact of private participation, was granted to H.P. Gauff Ingenieure GmbH Co. and was combined with r some donor-funded rehabilitation work. However, the service contract brought limited benefits. Public management followed the end of the service contract but it led to service deterioration. To reverse the situation, a management contract was signed with H.P. Gauff Ingenieure GmbH Co. Among the main goals under the management contract were: reducing leakage to 25%, improving collection, and increasing coverage by 1,000 connections. By 2005, the contract was deemed as successful with total number of connections increased by 62% from 4,000 to 6,500 and leakage went down from 50% to 25%. The contract concluded in December 2005. None None