Announcement

Corporatization of State-owned Enterprise to Improve Water and Sanitation in Kabul

With USAID support, CAWSS is the first state-owned enterprise in Afghanistan to be restructured as a corporation.

Kabul, Afghanistan  | Tuesday, June 30, 2009

Photo: USAID/Katya Sienkiewicz

Dr. Jalil Shams, Minister of Economy (left); Prince Mostapha Zaher, General Director of the National Environmental Protection Agency (center); and Dr. Omar Zakhilwal, Minister of Finance (right) exchange the CAWSS transfer memorandum.

On May 31, 2009, the Afghan Government transferred the Kabul Department of the Central Authority for Water Supply and Sewage (CAWSS) to a new corporation, the Afghan Urban Water Supply and Sewage Corporation (AUWSSC). The corporatization process takes poorly functioning public companies, and transforms them into organizations that provide better services – like clean water and sanitation – to the Afghan people.  With USAID support, CAWSS was the first state-owned enterprise in Afghanistan to be restructured as a corporation, with more effective and efficient operational, commercial, and financial management.

The transfer included more than $31.4M in assets and $3.4M in liabilities, including 66 individual pieces of land with associated buildings, 43 wells, 18 reservoirs, and more than 600 kilometers of the water transfer network.  The corporatization of CAWSS is a significant step in the creation of a more effective and comprehensive water and sanitation service supply in urban Afghanistan.  Kabul residents will enjoy better access to clean water and sanitation services, as well as a more sustainable water supply, which will strengthen public health and hygiene.  Improved wastewater management practices will also help to protect and preserve the environment in Kabul and surrounding areas.