The Challenge of Reducing Non-Revenue Water in Developing Countries--How the Private Sector Can Help : A Look at Performance-Based Service Contracting

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.

Bibliographic Details

Main Authors:	Kingdom, Bill, Liemberger, Roland, Marin, Philippe
Language:	English en_US
Published:	World Bank, Washington, DC 2006-12
Subjects:	ACCESS TO INFORMATION, ACCESS TO POTABLE WATER, ACCESS TO SAFE WATER, ACCESS TO SAFE WATER SUPPLY, ACCESS TO WATER, ACCESS TO WATER SUPPLY, CAPACITY BUILDING, CAPITAL INVESTMENT, CASH FLOW, CASH FLOWS, CITY COUNCIL, COMMERCIAL WATER, COMPETITIVE BIDDING, CONSTRUCTION, CONSUMER GROUPS, COST OF WATER, CUBIC METER, CUBIC METERS, CUBIC METERS PER DAY, DESIGN OF WATER, DISTRIBUTION NETWORK, DISTRIBUTION NETWORKS, DISTRIBUTION SYSTEM, FINANCIAL INCENTIVES, FINANCIAL VIABILITY, HIGH LEVELS, HOUSEHOLD CONNECTIONS, INTERNATIONAL BENCHMARKING, INVESTMENT PROGRAM, JOINT VENTURE, LEAK DETECTION, LEAK REPAIRS, LEAKAGE, LEAKAGE REDUCTION, LITERS PER CAPITA PER DAY, LOCAL PRIVATE SECTOR, MARGINAL COST, METER ACCURACY, METER READERS, METER READING, METER READINGS, METER REPLACEMENT, METERING, METROPOLITAN WATERWORKS, NATIONAL WATER, NATIONAL WATER COUNCIL, OPERATING COSTS, OPERATIONAL COSTS, OPERATIONAL PERFORMANCE, PERFORMANCE INDICATORS, PHYSICAL LEAKAGES, PHYSICAL LOSSES, PIPED WATER, POOR WATER QUALITY, POTABLE WATER, PRIVATE OPERATOR, PRIVATE OPERATORS, PRIVATE PARTICIPATION, PRIVATE PARTICIPATION IN WATER, PRIVATE PROVIDERS, PUBLIC MANAGEMENT, PUBLIC UTILITIES, PUBLIC UTILITY, PUBLIC WATER, PUBLIC WATER UTILITIES, PUBLIC WATER UTILITY, PUBLIC-PRIVATE PARTNERSHIPS, PUMPING, RUN WATER UTILITY, SANITATION, SANITATION PROGRAM, SANITATION SECTOR, SANITATION UTILITIES, SCARCE WATER, SCARCE WATER RESOURCES, SERVICE CONNECTION, SERVICE CONNECTIONS, SERVICE CONTRACTS, SUSTAINABLE UTILITIES, TRAFFIC, UNIT COST, URBAN WATER, URBAN WATER SECTOR, URBAN WATER SUPPLY, URBAN WATER SUPPLY SYSTEMS, USERS, UTILITY MANAGEMENT, UTILITY MANAGER, UTILITY MANAGERS, UTILITY SECTORS, UTILITY STAFF, VALUABLE INFORMATION, VALUE OF WATER, VOLUME OF WATER, VOLUMES OF WATER, WATER ASSOCIATION, WATER AUTHORITIES, WATER CRISIS, WATER DEPARTMENT, WATER DISTRIBUTION, WATER DISTRIBUTION SYSTEM, WATER INDUSTRY, WATER INFRASTRUCTURE, WATER LOSSES, WATER PROJECTS, WATER RESEARCH, WATER RESOURCES, WATER SECTOR, WATER SECTOR REFORM, WATER SERVICES, WATER SHORTAGE, WATER SHORTAGES, WATER TREATMENT, WATER TREATMENT PLANT, WATER UTILITIES, WATER WORKS,
Online Access:	http://documents.worldbank.org/curated/en/2006/12/7531078/challenge-reducing-non-revenue-water-nrw-developing-countries-private-sector-can-help-look-performance-based-service-contracting https://hdl.handle.net/10986/17238
Tags:	Add Tag No Tags, Be the first to tag this record!