Performance based contracting in the water sector – managing risks and rewards

Sir Michael Dummett (formerly Blue Boar) Lecture Theatre, Christ Church</h3>
Investment needed to meet the SDGs in the water supply and sanitation sector is estimated at several times historic levels of spend during the MDG period. Governments must therefore seek innovative ways to deliver results in a cost-effective manner. Performance-based contracting (PBC) is one possible way to achieve this. The design of PBC contracts for use in developing countries is, however, particularly challenging given additional uncertainties such as poor quality data and weak capacity.

This talk reflects on how models that work in UK or Europe may not work in a developing country context and the need to avoid cut-paste approaches to policy-making.

<strong>About the speaker:</strong>
Bill Kingdom is a Lead Water Supply and Sanitation specialist in the Water Global Practice of the World Bank. During his career he has worked extensively in South and East Asia, the Middle East, UK, USA, Canada, and now in Southern Africa.

He has led water supply and sanitation projects for public enterprises in developed & developing countries, supported regulators, provided policy advice to governments and implemented a number of innovative PPP projects including performance-based leakage reduction contracts in Vietnam, and delivering 24/7 water supplies in India. He has authored many papers including on the challenge of financing the SDG agenda and the characteristics of well-run utilities.