Publication:
Reducing Water Loss in Developing Countries Using Performance-Based Service Contracting

Loading...
Thumbnail Image
Files in English
English PDF (1.16 MB)
556 downloads
English Text (17.12 KB)
64 downloads
Published
2008-06
ISSN
Date
2012-08-13
Editor(s)
Abstract
A major challenge facing water utilities in the developing world is reducing water loss caused by leakage, theft, and improper billing. The difference between the amount of water put into the distribution system and that billed to consumers is known as Non-Revenue Water (NRW). The worldwide cost of NRW is conservatively estimated at $15 billion/year. More than a third of losses occur in the developing world, where some 45 million
Link to Data Set
Citation
Kingdom, William D.; Liemberger, Roland; Marin, Philippe. 2008. Reducing Water Loss in Developing Countries Using Performance-Based Service Contracting. Water P-Notes; No. 4. © World Bank. http://hdl.handle.net/10986/11753 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    The Challenge of Reducing Non-Revenue Water in Developing Countries--How the Private Sector Can Help : A Look at Performance-Based Service Contracting
    (World Bank, Washington, DC, 2006-12) Kingdom, Bill; Liemberger, Roland; Marin, Philippe
    This study explains that one of the major issues affecting water utilities in the developing world is the considerable difference between the amount of water put into the distribution system and the amount of water billed to consumers (also called "non-revenue water" [NRW]). High levels of NRW reflect huge volumes of water being lost through leaks, not being invoiced to customers, or both. It seriously affects the financial viability of water utilities through lost revenues and increased operational costs. In this report, a number of case studies, taken from some of the largest and most recent performance-based NRW contracts, are studied and discussed in terms of their technical and financial performance. Lessons learned from the case studies are analyzed, showing the potential benefits of NRW performance-based service contracting with the private sector. This paper was prepared as part of a Public-Private Infrastructure Advisory Facility (PPIAF)-financed study to investigate opportunities for the use of the private sector to assist water utilities in developing countries in reducing non-revenue water. This study indicates that the private sector help ailing public sector utilities in developing countries reduce NRW even though the performance- based service contracting approach described should not be seen as a substitute for overall sector reform. The case studies, while limited in number, provide examples of both good ideas and those to be avoided-but hopefully enough to help a utility and its consultants devise better cost-effective contractual arrangements suited to their conditions.
  • Publication
    Corporatizing a Water Utility : A Successful Case Using a Performance-Based Service Contract for ONEA in Burkina Faso
    (World Bank, Washington, DC, 2010-03) Marin, Philippe; Fall, Matar; Ouibiga, Harouna
    Thanks to a corporatization process spanning two decades, Burkina Faso's national water and sanitation utility ranks among the few well-managed public water utilities in Sub-Saharan Africa. Key to its success has been the government's unceasing commitment to reform, which included the successful implementation of an innovative performance-based service contract with an international operator from 2001 to 2006. The experience shows that it is possible to establish a well-performing public water utility in a poor developing country- as long as the governance framework ensures the autonomy and accountability of the service provider and the government supports the sector's long-term financial viability through an appropriate tariff and investment policy.
  • Publication
    Reforming Urban Water Utilities in Western and Central Africa : Experiences with Public-Private Partnerships, Volume 2. Case Studies
    (World Bank, Washington, DC, 2009-06) Fall, Matar; Marin, Philippe; Locussol, Alain; Verspyck, Richard
    The Western and Central Africa has one of the longest experiences with public-private partnerships (PPPs) in the developing world, both for water supply and for combined power and water supply utilities. Cote d'Ivoire has a successful partnership dating from 1959, and over the last two decades as many as 15 countries (out of 23 in the region) have experimented with PPPs: eight for water supply operations alone and seven for combined power and water supply operations. This discussion paper documents the region's experience with PPPs for urban water supply in a comprehensive manner to help inform the current debate about the benefits brought by PPPs, in the context of helping Africa to achieve the Millennium Development Goals (MDG). Eleven PPPs have been studied, and detailed performance indicators are reported for six large cases - Cote d'Ivoire, Senegal, Niger, Mali, Burkina Faso, and Gabon, with at least four years of private operation. Through its successes and failures, the Western and Central African experience offers interesting lessons that other developing countries could reflect upon as they strive to improve the quality of urban water supply services, increase the efficiency of operations, and establish the financial credibility of the sector.
  • Publication
    Managing Karachi's Water Supply and Sanitation Services : Lessons from a Workshop
    (Washington, DC, 2005-08) World Bank
    Water services in Pakistan's major cities and urban centers remain fragmented and intermittent-no city currently has 24 hours of water supply for seven days a week. This impairs the ability of cities to support economic growth and meet basic needs. Faced by this challenge, the Nazim of the City District Government of Karachi (CDGK) suggested in mid-2004 that the Water and Sanitation Program - South Asia (WSP-SA) help to arrange a discussion about lessons for Karachi from Water and Sanitation (W&S) services reform in large cities and urban areas elsewhere in the world. In follow up discussions, it was agreed that although Karachi would be the entry point, the workshop should also include discussion of similar challenges elsewhere in Pakistan. Key W&S stakeholders from major cities in Pakistan, the central government and the provincial government of Sindh (where Karachi is located) attended a two-day workshop in Karachi on February 23-24, 2005. The WSP-SA facilitated participation by several resource persons, including practitioners from Manila, Johannesburg, Phnom Penh and from the national water utility in Uganda. The formal presentations and delegates' inputs all emphasized the institutional-rather than technical- nature of the challenges around water and sanitation in Pakistani cities. This message also came through in a number of keynote addresses. A key lesson learned from the workshop is that there is no single solution or model for water management that can be applied everywhere. However, international and Pakistani city experiences all highlight a number of factors crucial for effective reform in most contexts. These factors include the importance of reliable information; the need for performance benchmarks and monitoring; the issue of keeping policymaking, regulation, and provision separate and therefore ensuring a robust accountability framework; strong political leadership,; having a comprehensive plan; sticking to the principles, while being pragmatic in strategy; managing change processes; proving powerful incentives; and the need to have resources to sustain reform plans and initiatives.
  • Publication
    Professionalization Contracts for Small Municipal Water Service Providers in India
    (World Bank, Washington, DC, 2015-06) Ehrhardt, David; Mugabi, Josses; Kingdom, William
    Professionalization contracts are a new concept. The aim of these contracts is to enlist the support of specialized private firms in turning public water utilities into competent professional operators. This report looks at how the business model for such contracts may work. This report builds on fieldwork and consultation in India. The model described in this report reflects two weeks of meetings with water sector stakeholder in India, including a workshop held at the World Bank country office in Delhi on 22 March 2011. The report gives introduction in section one. It describes briefly the need for professionalization contracts in India, and the target market section two. It then summarizes what the contractor will do, and how this differs from traditional capacity building, as well as from traditional public private partnership (PPP) concepts such as management contracts section three. The report then describes the complementary policy and institutional reforms that will be needed at the state and local government levels to make professionalization contracts successful section four. Section five looks at the political economy of professionalization contracts, identifying risks, and how these risks can be mitigated through design of the institutional reforms and the business model. Section six then turns to the true business model aspects by describing indicative costs of the professionalization contract and the complementary investments required. Section seven considers what the sources of funding for these costs would be, and section eight goes on to explain how the contractor will be paid, and hence the incentives under which it will operate. Section nine looks at the market of potential contractors, and examines their incentives to participate. Finally, section ten sets out some considerations for developing the concept.

Users also downloaded

Showing related downloaded files

  • Publication
    World Development Report 2006
    (Washington, DC, 2005) World Bank
    This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.
  • Publication
    Argentina Country Climate and Development Report
    (World Bank, Washington, DC, 2022-11) World Bank Group
    The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
  • Publication
    The Journey Ahead
    (Washington, DC: World Bank, 2024-10-31) Bossavie, Laurent; Garrote Sánchez, Daniel; Makovec, Mattia
    The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Lebanon Economic Monitor, Fall 2022
    (Washington, DC, 2022-11) World Bank
    The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.