GLOBAL: Component 1 - Good Performance-Based Contract Practices for Non-Revenue Water Program

When water is processed and distributed to customers, not all of it is paid for. We call this non-revenue water, or NRW. NRW is an expensive problem. Globally, about $14 billion is lost in annual revenues, which hurts both utility cash flows and indirectly, customers. In partnership with the International Water Association and the World Bank Water Global Practice, PPIAF supported a 4-year knowledge and learning program on using performance-based contracts (PBCs) to implement NRW projects. PBCs for NRW are 70 percent more effective than NRW projects implemented by utilities on their own.

The Program engaged over four hundred local and international practitioners, utility managers and private companies through discussions, training and market sounding about structuring and implementing PBCs for NRW. This has led to the development of a full suite of practical tools, case studies, terms of references and procurement models made available by PPIAF at PPPKnowledgeLab/PBCs for NRW. Dozens of transactions are under way in Pakistan, Kenya, Tanzania, Ethiopia, West Bank, South Africa, Indonesia and Vietnam. More are expected to go to market over the coming years.