Ehrhardt, DavidGandhi, RiddhimaMugabi, JossesKingdom, William2015-06-232015-06-232015-06https://hdl.handle.net/10986/22042Successful mid-sized cities will be vital to India’s growth and prosperity in the coming decades. Indian cities are home to over 375 million people now, and their population is likely to double by 2035. Yet water supply in most mid-sized cities falls short of Government of India benchmarks for service, efficiency and cost recovery. In many of them water flows in the pipes for 2 hours a day or less, its quality is poor, and it is provided by utilities that cannot even cover their operating costs. Following a brief introduction to the three city case studies (section two), the report lays out the Indian water sector’s unique challenges, and using case examples to substantiate findings (section three). The challenges include day-to-day operational issues associated with running a utility, as well as policy and planning issues that affect the utility’s governance and investment planning to meet current and future demand. The results of a financial viability gap analysis, applied to Bhubaneswar and Coimbatore reveal the magnitude of improvements required, and the key drivers that affect the utilities’ financial performance (section four). These complex challenges make traditional PPP models, Management Contracts, Concessions and Leases, less amenable for use in mid-size Indian cities. As section five describes, this is because the traditional models are too risky for the operator or government or too limited in scope to create lasting improvements. The remaining sections focus on explaining the design and procurement strategy for the two innovative PPP models, the phased performance based contract and the Joint Venture (JV) Partnership (section six and seven). These models have the potential to deliver better results than the traditional PPPs and business as usual scenarios. This is because in addition to reforming dysfunctional utilities into focused and accountable organizations, they are able to respond to information uncertainty, include strong incentives, have clear sources of funding, and promote capital efficiency.en-USCC BY 3.0 IGOWATER QUALITYTARIFFSWATER SERVICESAFFORDABLE WATERPUBLIC UTILITIESSERVICE STANDARDSOPERATIONAL EFFICIENCYASSET OWNERSHIPQUALITY OF WATERURBAN GROWTHOPERATIONAL EXPENDITURESERVICE IMPROVEMENTPERFORMANCE BENCHMARKSHOURS OF SERVICEWATER COMPANYWATER SECTORMIXED PRIVATE-PUBLIC OWNERSHIPOPERATIONAL IMPROVEMENTSWATER SUPPLYJOINT VENTUREINVESTMENT PLANNINGPIPE NETWORKURBAN WATERPRIVATE PARTICIPATIONUTILITY STAFFTARIFF SETTINGDISTRIBUTION FUNCTIONSWATER BOARDTOWNSWATER SUPPLY SERVICESSMALL TOWNSWATER CONSUMPTIONWATER RESOURCESCASH FLOWSGOVERNANCE ARRANGEMENTSMAINTENANCE COSTSCUSTOMER RELATIONSMUNICIPALITIESDISTRIBUTION SYSTEMPRIVATE OPERATORWASTEWATER TREATMENTTARIFF ADJUSTMENTSCONCESSION CONTRACTPRIVATE OPERATORSCOST RECOVERYPOPULATION GROWTHTOWN WATEROPERATOR PERFORMANCEWATERCONCESSION CONTRACTSWATER RESOURCES MANAGEMENTRAW WATERBULK SUPPLYWASTEWATER SECTORCONTRACT MANAGEMENTFINANCIAL VIABILITYLOCAL ENGINEERINGSERVICE PROVISIONLITRES PER DAYPOTABLE WATERUTILITY MANAGEMENTTOWN WATER SUPPLYWATER SERVICE PROVISIONFINANCEWATER OPERATORSINVESTMENT DECISIONSRESPONSIBILITY FOR WATER SUPPLYOPERATIONAL RISKSMETER READINGOPERATIONAL PERFORMANCECAPITALPERFORMANCE INCENTIVESSERVICE IMPROVEMENTSUTILITIESWATER DEMANDMUNICIPAL PROVIDERSPRIVATE SECTOR OPERATORSCOLLECTION EFFICIENCYSYSTEMSWATER PRODUCTIONCONCESSION AGREEMENTURBAN AREASWATER TARIFFSTARIFF INCREASEFIXED FEESERVICE QUALITYQUALITY WATERTOWNWATER UTILITIESWATER SUPPLY FACILITIESIRRIGATION SYSTEMSINVESTMENTHOUSEHOLDSURBAN WATER SUPPLYLEAKAGE REDUCTIONMAINTENANCE OPERATIONSWATER PARTNERSHIPRESPONSIBILITY FOR WATERWATER SERVICEPRIVATE FINANCINGWATER INFRASTRUCTURELOCAL OPERATORSNUMBER OF CONNECTIONSBULK WATER SUPPLYURBAN WATER UTILITIESWATER DISTRIBUTIONMUNICIPAL COUNCILCONTRACT DURATIONQUALITY OF SERVICEUTILITY OPERATORSERVICE PROVIDERSReportWorld Bank10.1596/22042