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Developing Good Performance Based Contract Practices for Non-Revenue Water Management

The goal of the Program is to catalyze increasingly better practices in the marketplace on PBCs for NRW Management.

“Better practices” will be identified in the short-term by: shorter and more cost-effective preparation of PBC transactions and increased number of market participants (suppliers and seekers) active in the market, and, in the medium-to-long term by: improved value-for-money of PBC activities in NRW management and the longer rates of decline in NRW performance in participating utilities post-PBC.

To realize this goal, the Program will work on a set of intermediate outcomes revolving around three key stakeholders over the next 4 years:

  1. Development financing institutions (starting with the World Bank and IDB, potentially the African Water Facility of the African Development Bank and Eurpean Investment Bank) will deliver increasingly cost-effective assistance to clients by incorporating the state-of-the-art in lessons from PBCs brought to market and by applying standardized tools developed under the Program.
  2. More private service companies, particularly regional and domestic firms, are able to participate in, and offer value-for-money services to WSPs in developing countries through, PBC tenders because they understand the market opportunity and possess the resources and skills to provide quality offers.
  3. As a response to incentives tested/supported under the Program, WSPs are able to improve and maintain their NRW performance through PBCs.

Activities in this program

Related Resources

    • PPIAF

    Using Performance-Based Contracts to Reduce Non-Revenue Water

    Non-revenue water (NRW) management can deliver significant financial and economic benefits, and to a large extent, NRW programs can be self-financing—rapid revenue gains from commercial loss reduction, for example, can supply the OPEX and CAPEX...