Publication: The Challenge of Reducing Non-Revenue Water in Developing Countries--How the Private Sector Can Help : A Look at Performance-Based Service Contracting
Date
2006-12
ISSN
Published
2006-12
Author(s)
Kingdom, Bill
Liemberger, Roland
Marin, Philippe
Abstract
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.
Link to Data Set
Citation
“Kingdom, Bill; Liemberger, Roland; Marin, Philippe. 2006. The Challenge of Reducing Non-Revenue Water in Developing Countries--How the Private Sector Can Help : A Look at Performance-Based Service Contracting. Water Supply and Sanitation Sector Board
discussion paper series;no. 8. © World Bank, Washington, DC. http://hdl.handle.net/10986/17238 License: CC BY 3.0 IGO.”