The Water and Sewerage Corporation (WSC) engaged K&M to conduct a comprehensive financial analysis regarding the potential takeover of seven desalinated water plants from Aqua Design in The Bahamas. These plants operate under a Build-Own-Operate (BOO) model within a framework defined by a Master Agreement and individual sub-agreements, with three contracts still active, one under extension, and three expired. K&M’s task was to evaluate four distinct options concerning the future ownership and operation of these plants, providing a detailed financial analysis and strategic recommendations to assist WSC in making an informed decision. This involved scrutinizing the operational and financial implications of each option, offering cost estimations, and developing a strategic framework to ensure that WSC’s decisions are financially viable and aligned with governmental directives, thereby facilitating a smooth transition in the management and operation of these vital water resources.

The Water and Sewerage Corporation (WSC) contracted K&M Advisors to develop an initial Strategic Plan Outline with the objectives and priority actions for WSC for the next four years. The objective of this assignment was to develop an initial Strategic Plan Outline with the objectives and priority actions for the Water and Sewerage Corporation (WSC) for the next four years. Having been validated at a stakeholder workshop that included WSC staff, members of WSC’s board, and authorities from the Ministry of Finance and the Ministry of Public Works, this outline is being used to prepare WSC’s Corporate Business Plan and the associated legal and regulatory reforms required to achieve the objectives established in the plan.

In this assignment, K&M carried out the following activities:

• Conducted a preliminary review of WSC’s coverage, operations, and financial performance
• Proposed objectives and priority actions to WSC Board and WSC EXCOM
• Led a Workshop in Nassau to review proposed objectives and priority actions
• Prepared the Strategy Plan Outline for WSC’s Corporate Business Plan for 2023-2027

The Water and Sewerage Corporation of The Bahamas has engaged K&M to undertake the preparation of a Corporate Business Plan. The primary objective of this consultancy is to develop a comprehensive plan that will guide the Water and Sewerage Corporation’s activities from 2023 to 2027. The plan will encompass various aspects such as service quality, operational efficiency, financial management, capital investments, and the legal and regulatory framework.

Within this assignment, K&M has been assigned the following responsibilities:

1. Preparation of a financial model for the Water and Sewerage Corporation (WSC) to facilitate effective financial planning and management.
2. Conducting a cost of service study for WSC, which will help determine the appropriate pricing structure for services.
3. Developing an action plan for tariffs, ensuring a strategic approach to tariff adjustments in line with the cost of service study outcomes.
4. Providing advisory support on existing water supply contracts, reviewing their terms and conditions, and making recommendations for improvements or updates.
5. Creating a prioritized capital expenditure (CAPEX) plan for WSC, outlining investments aimed at enhancing operational efficiency, improving service quality, and strengthening the overall resilience of the organization. Additionally, developing a financing plan to support the implementation of the CAPEX plan.
6. Recommending changes to government policies and the legal and regulatory framework governing the water and sewerage sector, aiming to create an enabling environment for WSC’s operations.
7. Establishing a baseline of Key Performance Indicators (KPIs) to measure customer satisfaction, enabling WSC to monitor and enhance its service delivery.
8. Providing advisory support for the update of WSC’s emergency response plan, ensuring preparedness and efficient response in emergency situations.
9. Ultimately, K&M will prepare the Corporate Business Plan itself, incorporating all the necessary components and recommendations.

Throughout the process, K&M will also lead stakeholder engagement forums and present the developed recommendations to the Government, ensuring transparency and collaboration in shaping the future of the Water and Sewerage Corporation of The Bahamas.