• performance-based contracts
  • non-revenue water

Increasing Water Supply to Customers through a Performance-Based Contract for Non Revenue Water Reduction

Organization Public-Private Infrastructure Advisory Board
Author PPIAF
Year 2018
Topics Drinking Water Systems, Urban Water Management, Water Governance, Regulation and Utility Management
Level of action Water & Sanitation services/ Utility level


In 2005, Ho Chi Minh City (HCMC) did not have enough water supply to meet demand for its 6 million inhabitants. Less than half the city was connected to the network. More than 40 percent of water produced was lost as leakage. Supply was intermittent. To increase supply to customers, a contractor was competitively procured to enter a performance-based contract (PBC) for non-revenue water (NRW) reduction, with a focus on leakage reduction. By the end of the contract 122MLD (million liters per day) of water had been saved, improving reliability of supply and allowing new customers to be connected.