In 1993 in Boroma town, a community workshop launched the discussion about the management of urban water and the importance of the role of private companies’ involvement. Decision was taken to extend the distribution system and look after O&M options. A private company was formed with individual share of 5,000 USD (Boroma Utility Company) for a total capital investment of 105,000 USD. A control board formed by Municipality, local Council and the Ministry of Mineral, Water and Energy supervises the private company. Investors deposited 20,000 USD and signed an agreement that guarantees 3% of revenues to the Municipality. Africa 70 provided the billing system. The main output of this project is the access of the population to potable water. The private company AUC provides the distribution in the entire town through 45 kiosks and some 2,000-house connections.
Municipal taxes are mainly from revenue coming from household and business centers. In the commercial area, tax is 500 SoShs/m² per year, for residential houses, 200 SoShs/ m² per year, and for open spaces 100 SoShs/ m² per year. Poor people do not pay now, but the Municipality is monitoring their ability to pay for the future. According to “The Statistical Abstract of Boroma Municipality” prepared by the Economic and Project Management Committee, Boroma Local Council (December 2003), the total revenue from markets in 2003 were 137,974,370 SoShs (presently 23,000 USD), from Licenses 24,167,350 SoShs (presently 4,000 USD) and from Livestock Market 79,452,000 SoShs (presently 13,250 USD). In 2002 the slaughtered animals were 37,000 corresponding to 18.500.000 SoShs (3,100 USD) tax revenues.
Source:
SOMALI JOINT NEEDS ASSESSMENT
INFRASTRUCTURE CLUSTER REPORT
WORLD BANK AND UNITED NAITONS
Municipal taxes are mainly from revenue coming from household and business centers. In the commercial area, tax is 500 SoShs/m² per year, for residential houses, 200 SoShs/ m² per year, and for open spaces 100 SoShs/ m² per year. Poor people do not pay now, but the Municipality is monitoring their ability to pay for the future. According to “The Statistical Abstract of Boroma Municipality” prepared by the Economic and Project Management Committee, Boroma Local Council (December 2003), the total revenue from markets in 2003 were 137,974,370 SoShs (presently 23,000 USD), from Licenses 24,167,350 SoShs (presently 4,000 USD) and from Livestock Market 79,452,000 SoShs (presently 13,250 USD). In 2002 the slaughtered animals were 37,000 corresponding to 18.500.000 SoShs (3,100 USD) tax revenues.
Source:
SOMALI JOINT NEEDS ASSESSMENT
INFRASTRUCTURE CLUSTER REPORT
WORLD BANK AND UNITED NAITONS
