A joint study by the WHO and the World Bank recommended the introduction of cost recovery and the establishment of a national water company. As a result, a law was passed in 1988 that introduced the principle of cost recovery and established the Sierra Leone Water Company (Salwaco). Water tariffs were introduced in urban areas as flat rates, i.e. rates that were independent of consumption and without metering for residential customers. Only for commercial customers and public institutions meters were installed and bills began, in principle, to be based on consumption.
