Rationalization of Drilling Operations in Tanzania

The development of a local capacity for low-cost drilling is a critical factor for large-scale progress in rural water supply. To meet the MDGs around 14,000 boreholes with handpumps or motorised small piped systems need to be constructed in Tanzania. The potential for cost saving in drilling is tremendous; a cost reduction of more than 10% is easily realistic, which, if realised, would result in savings of USD 10 million.

The goal of this study was to work out guiding principles and recommendations for the development of low-cost drilling capacity for community water supply. It produced tangible tools for decision makers, project planners and implementers on key issues, such as: 

• Principles that encourage the successful private sector participation through creation of an enabling environment for the drilling industry. Local private drillers need a steady stream of small contracts. The challenge in decentrlised implementation is to keep the administrative burden small and to maintain economies of scale. The study recommnended uniform rates procurement, the system allows authorities to let out contracts quickly based on capacity and availability and provides a simple mechanism for districts to package borehole drilling. Three-year rolling district development plans allow the districts to make long-term commitments. Satisfactory execution of the work should lead to down-stream work. Extended contracts over several years give an incentive to do a good job and accountability.
• Strategies and action plans for transformation of Drilling and Dam Construction Agency into a regulatory agency. DDCA to gradually cease the commercial drilling operations and dispose of unneeded staff and equipment. The future tasks should be regulation, setting of standards, enforcement of standards, issuance of permits, quality control, data collection, MIS, and limited non-commercial drilling. The transition process should be carried out with highest transparency and it should include coordination with all involved stakeholders.
• Technologies for drilling and appropriate borehole specifications. The use of reduced diameter screen boreholes and unlined boreholes in hard rock formations should be piloted. A NGO in cooperation with MWLD could carry out an action research pilot project.