Request For Proposal (RFP) for the Recruitment of a Consultant to review and propose an Affordable Rural Water and Sanitation services Tariff for Rural Areas in Rwanda.

BACKGROUND

The Government of Rwanda has committed to achieving the Sustainable Development Goals (SDGs) and has national targets to reach 100% access to drinking water by 2028/29.

This increase in coverage and levels of service will be achieved through more investment in new infrastructure, as well as rehabilitation, and regular operations and maintenance of existing water supply infrastructure. To achieve the SDGs and NST2/Water and Sanitation Sector Strategic Plan targets with sustainable water supply services, the participation and partnership of the private sector will be required.

Private operators are now contracted to manage rural water supply services by the Water and Sanitation Corporation (WASAC). Water supply systems are segregated into ‘Clusters’, grouping all services in a given geographic area. There are approximately 45 Clusters in 25 districts managed by 49 private operators. However, many private operators are small, inexperienced businesses with inadequate financial management to ensure sustainable services are provided in compliance with the contracts held with WASAC Ltd.

Moreover, Rwanda has achieved >95 % basic sanitation coverage, but rural and peri-urban sanitation services (latrines, faecal sludge emptying, transport, treatment, and reuse/disposal) remain largely informal and unsubsidized. 

Rwanda Utilities Regulatory Authority (RURA) regulates water supply service provision in Rwanda, including the regulation of user tariff rates. It is in this framework of fulfilling its mandate with regard to water regulation that RURA seeks support to determine the rural water tariff structure. Furthermore, to achieve safely managed sanitation (SDG 6.2) and the NST2 target of 100 % safely managed sanitation by 2029, RURA is mandated (Law N° 39/2019, Art. 36) to regulate sanitation tariffs, including in rural areas previously considered “on-site, private responsibility”. To regulate sustainable and affordable sanitation services in rural areas, a comprehensive sanitation tariff scheme is needed.

Water For People in Rwanda has agreed to engage a qualified consultant (firm or joint-venture of consultants) to support RURA to determine a rural water and sanitation tariff structure. 

OBJECTIVES OF THE ASSIGNMENT

Overall objective

The overall objective of this consultancy is to review the existing rural water, develop sanitation tariff and assess the current management practices of rural water supply and sanitation systems to identify key areas for improvement that will enhance operational performance, financial sustainability, and service delivery.

Specific objectives 

Specifically, the consultancy aims to:

• Assess and document the current management and operational performance of rural water supply systems, including governance arrangements, technical operation and maintenance, financial management, community involvement, operating costs, and revenue gaps.
• Evaluate the effectiveness, efficiency, and sustainability of existing management models and practices, and identify key gaps, weaknesses, and challenges affecting system functionality, reliability, and long-term sustainability.
• Analyze opportunities for strengthening rural water management frameworks, particularly in areas such as institutional capacity, technical O&M practices, financial mechanisms, monitoring systems, and community engagement.
• Develop a rural water tariff structure that ensures full cost recovery for operation and maintenance (O&M) while remaining affordable for different customer categories.
• Provide practical, evidence-based recommendations to improve management performance, enhance cost recovery, and ensure efficient and affordable service provision.
• Build the capacity of service providers and other stakeholders to effectively implement and sustain the proposed tariff system and improved management practices.
• Develop and recommend an affordable, cost-reflective, and incentive-compatible sanitation tariff framework for rural and small-town sanitation services covering:
• Scheduled and on-call faecal sludge emptying.
• Transport.
• Treatment and safe disposal/reuse.
• Possible public or communal sanitation facilities

SCOPE OF WORK

The consultant/firm will undertake the following tasks:

Data Collection and Situational Analysis

• Review existing policies, legal and regulatory frameworks related to rural water and sanitation system management, including the current rural water tariff.
• Collect data on customers, operation and maintenance (O&M) costs, capital maintenance requirements, and revenue patterns for rural water and sanitation systems.
• Conduct stakeholder consultations.

Financial and Economic Analysis

• Undertake cost analyses, including:
  • Operation and maintenance (O&M) costs
  • Capital maintenance requirements
• Assess the willingness and ability to pay among households and institutions.
• Evaluate alternative cost-recovery models.

Tariff Structure Development

• Propose tariff options such as flat-rate or volume-based.
• For each option, provide:

• Calculation methodology and assumptions
• Cost components and revenue projections
• Affordability impacts for different household categories
• Implementation considerations, including billing, collection, and subsidies

• Ensure the proposed tariff framework is financially sustainable, affordable, and practical for rural water service provision.
• Design sanitation tariff options, including: 

• Flat fee per emptying (volume-based or pit-size based).
• Subsidized tariff for the poorest quintiles.
• Cross-subsidy mechanisms (e.g., water surcharge).
• Pay-as-you-go or pre-paid models for communal toilets

Subsidy and Financial Support Mechanisms

• Identify potential subsidies or financial assistance for the poorest households to ensure equitable access to water services.
• Propose mechanisms for capital replacement

Capacity Building

• Develop training materials and manuals tailored for rural water and sanitation operators and service providers.
• Conduct training workshops focused on tariff implementation, financial management, and sustainable operation and maintenance practices.

DELIVERABLES

DURATION OF ASSIGNMENT

Typical duration: 12 weeks, depending on field data availability with a possibility of a non-cost extension unless agreed otherwise with stakeholders.

REQUIRED QUALIFICATIONS

The consultant/firm should have:

• Experience in water supply economics, rural water management, infrastructure finance, faecal sludge management, sanitation economics, or utility regulation,
• Proven experience in financial and tariff modelling in developing countries; experience in Rwanda is an added value 
• Knowledge of rural community structures and participatory approaches

STAKEHOLDERS

• Ministry of Infrastructure (MININFRA)
• Rural water Private Operators
• Government Institutions
• Water and Sanitation Corporation Group (WASAC
• Local government authorities
• NGOs and development partners 

REPORTING AND SUPERVISION

The consultant will report to: Rwanda Utilities Regulatory Authority (RURA), Head of Water and Sanitation. 

More specifically, the hired firm/joint venture will report to and be under the direct supervision of the Division Manager of the Competition Division in the Water and Sanitation Department.

BUDGET

A detailed budget will be prepared covering professional fees, field travel, data collection, workshops, and report production. The costs shall be in Rwandan-Francs and all taxes inclusive

REQUIRED QUALIFICATIONS AND EXPERIENCE CONSULTING FIRM OR CONSULTANTS JOINT VENTURE

If the assignment is awarded to a firm or a joint venture of consultants, the firm/ joint venture should demonstrate:

Experience

• At least 20years of experience in the water supply sector, particularly in tariff design, economic analysis, and rural water management.
• Evidence of similar assignments completed in the past 5 years (attach references or sample reports).
• Capacity to conduct field surveys, stakeholder consultations, and financial assessments.
• Demonstrated experience in conducting socio-economic assessments, ability-to-pay studies, or household surveys.
• Proven track record of developing tariff models in the last 5 years, financial frameworks, and sustainability plans for rural or small-town water systems as a firm or as per experience of team leader.
• Experience with community-based water and sanitation management structures (water user associations, rural water committees, faecal sludge management operators in rural areas).
• Previous experience working on donor-funded projects (World Bank, UNICEF, USAID, AfDB, EU, Water For People, etc.).
• Familiarity with national water policies, regulatory frameworks, and rural service delivery models.
• Knowledge of gender and social inclusion in water sector planning.

Team Composition

The firm/ Joint venture of consultants should propose a multidisciplinary team including:

• • Team Leader / Economist, Finance or Economic Regulation
    • Education background:
      • Economics
      • Finance
      • Economic regulation
      • Financial Analysis 
    • PhD’s degree; ≥10 years’ experience; expertise in tariff modelling or master’s degree; ≥15 years’ experience; expertise in tariff modelling
    • At least 10–15 years of professional experience in rural water supply, water and sanitation sector planning, or utility management.
    • Strong experience in water and sanitation tariff development, cost-recovery models, and financial analysis is an advantage.
    • Strong analytical and financial modelling skills (Excel or similar software).
    • Ability to develop clear, practical tariff guidelines and implementation tools.
    • Proven experience in policy analysis and utilities regulation;
    • Excellent facilitation and consultation skills, including community-level engagement.
    • Strong report-writing skills in English and Kinyarwanda
  • Water Supply Engineer
    • Master’s degree; ≥10 years’ experience in rural water system design, and asset management.

• Faecal Sludge Management Engineer

• • Master’s degree; ≥10 years’ experience in rural WASH system design, and asset management.

• Economist/ Statistics/ Social/Community Development Specialist
  • Master’s degree;
  • ≥10 years’ experience in community engagement, social studies, willingness and ability-to-pay assessments, policy analysis, and participatory methods.
• Financial Analyst
  • Master’s degree; ≥10 years’ Experience in utility finance, cost recovery, O&M costing, and tariff structuring.

SOURCE OF FUNDS

Water For People

COPYRIGHTS

Copyright of all materials for this assignment will be retained by the Rwanda Utilities Regulatory Authority (RURA) and the government of Rwanda. 

PROCUREMENT

Proposals will be evaluated using the following criteria: 

1st stage: Technical proposal: that includes company experience and profile of the team members with CV and academic documents. The pass mark is fixed at 80%.

2nd Stage: Financial Proposal: All proposals that will score 80% from the technical evaluation shall have their financial proposals evaluated. The successful bidder will be the one with the lowest quote. 

The selected vendor will be contractually required to comply with Water For People’s Vendor Code of Conduct Vendor code OK.pdf and will be required to deliver a Conflict-of-Interest Certificate prior to execution of the contract. The Conflict-of-Interest Certificate requires the disclosure of any potential or actual conflicts of interest with Water For People employees or their relatives including past, current, or proposed business transactions, employment or offers of employment, or certain gifts or entertainment. Water For People will evaluate any disclosures of conflicts of interest; if Water For People determines it cannot waive or mitigate the conflict of interest it will result in the disqualification of the selected proposer.

RIGHTS RESERVED

1. Water For People in Rwanda reserves the right to cancel the entire procurement process without incurring any liability whatsoever. 
2. Water For People in Rwanda reserves the right to amend any segment of the request for proposal prior to the announcement of selected candidates.
3. Water For People in Rwanda also reserves the right to remove one or more of the services from consideration for this contract should the evaluation show that it is in Water For People’s best interest to do so.
4. Water For People in Rwanda also may, at its discretion, issue a separate contract for any service or groups of services included in this request for proposal . Water For People may negotiate a compensation package and additional provisions to the contract awarded under this request for proposal.
5. Water For People in Rwanda reserves the right to debrief the applicants after the completion of the process due to the expected high volume of applications to avoid the compromise of the process.

BIDDING PROCESS

Interested companies are requested to submit their application files electronically not later than 18/01/2026 with the following subject “Design of an Affordable Rural Water and Sanitation services Tariff for Rural Areas in Rwanda.” to the following email: rwprocurement@waterforpeople.org. 

Both technical and financial bids must be submitted separately. The financial offer should be protected with a password that will be shared with the procurement officer one day after submission.

Notes:

• Any bid with any arithmetic error in calculation or any other type of error or omission will automatically be disqualified.

• Hard copies and late submissions shall be rejected.

1. Late submissions will not be considered.

Done at Kigali on 24/12/2025.
 

Eugene DUSINGIZUMUREMYI

Country Director