Addressing Water Loss with Performance-Based Contracts

International Water Association, World Bank Group, Public-Private Infrastructure Advisory Facility Reducing non-revenue water

Target Audience

Water utility managers, utility staff involved in assessing, preparing and implementing NRW PBCs or responsible for NRW management, donor agencies interested in or implementing NRW PBC projects.


Managing non-revenue water (NRW) is critical to the sustainable delivery of water services. Water utilities operating under weak governance and financial frameworks, economic constraints or deteriorating infrastructure face challenges in carrying out an effective NRW program.
Instruments like performance-based contracts (PBCs) draw on private sector financing to help utilities improve efficiency and access technology to address their NRW challenges in short periods of time. Evidence suggests that incentivizing private sector support through PBCs is 68% more effective than NRW reduction programs implemented by utilities alone. However, PBCs can be complex and require certain preconditions to be successful.
This webinar shares the experiences of utility companies in Jamaica, Kenya and Uganda that reduced NRW levels through this innovative contract model. Their case studies will highlight key challenges and success factors to improve practices in the use of PBCs for NRW management.

Learning Objectives

Participants will gain a deeper understanding and be incentivized to consider the option of private PBCs to address NRW. Participants will be exposed to case studies, tools, resources and guidelines that enable wider acceptance of PBCs. Following the webinar, you will:
• Recognize how performance-based contracts can offer an effective solution for your utility compared to traditional approaches to reducing NRW.
• Have a more informed approach to navigate key challenges in contract design (evaluation criteria, contract scope, cost and risk transparency) in accordance with utility and region-specific conditions.
• Locate resources and experts available to support best practices for PBC design and implementation.


World Bank Group