Determinants of the Financing Gap in Water Supply and Sanitation Utilities: A Case of Ruvuma Region in Tanzania.

Nyamhanga, Maswe (2024) Determinants of the Financing Gap in Water Supply and Sanitation Utilities: A Case of Ruvuma Region in Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

Financing gap is one of the key challenge facing most the water supply and sanitation utilities in Tanzania and across the world to achieve the Sustainable Development Goal 6 clean water and sanitation for all. The study investigated the determinants of the financing gap in water supply and sanitation utilities. The specific objectives were; to asses the influence of operation and maintenance (O&M) costs in water pricing, determine the influence of financial sustainability of the water projects and influence of the terms and conditions of the repayable sources of finance on Financing gap in water supply and sanitation utilities. The study adopted an explanatory research design and quantitative approach to establish the relationship between the variables under investigation. A sample data of 100 respondents wete used, data were collected by the means of questionnaires and analysed by descriptive statistics and inferential statistics through Multiple Linear Regression Analysis (MLRA) technique. The findings showed that, operation and maintenance costs, financial sustainability of the water supply projects and the terms conditions of the repayable sources of finances influence positively the financing gap in water supply and sanitation utilities. The study concludes and recommends that, since the O&M costs, financial sustainability of water projects and terms and conditions of the repayable source of finance influence the financing gap, water utilities should have a clear and accurate understanding of their O&M costs to minimize the gap, water projects should be financially sustainable and water utilities should stabilize at first in terms of their internal revenue and changes their operating model before opting to repayable source of finance in their efforts of minimizing financing gap. Keywords: Financing gap ,operation and maintenance costs , Financial sustainability of and ,Repayable sources of finances

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