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In the market for good practices on performance-based contracts for non-revenue water management

Jemima Sy's picture

As water specialists, we care a lot about our clients being able to provide good water service to their customers on a sustained basis, but many utilities in the countries we work for struggle to provide consistent service.  Imagine how much more challenging this will become in the next two decades, when two-thirds of the world’s population will live in urban areas. [1] By 2025, 1.8 billion people will live in areas with absolute water scarcity. [2]
Non-Revenue Water (NRW) is water that is placed into a water distribution system and not billed because of leaks or commercial failures. Efficient management of NRW offers significant financial benefits to utilities while bringing economic and environmental benefits to societies around the world. Why, then, does NRW still present governments with such intractable problems?

​Developing municipal credit markets: Experience with pooled finance

Kirti Devi's picture

Urbanization is a defining trend of our time. In 1900, 13 percent of the world’s population was urban. Today more than half of the estimated population of 7.2 billion lives in cities. And this growth has happened in one century.
On the upside: Urbanization and economic development are correlated and there are other benefits of density and agglomeration economies. Production is concentrated in cities, which are also centers of demand and social convergence. No country has achieved high-income status without significant urbanization. However, increasing energy use, accelerating CO2 emissions and more environmental pressures will accompany GDP growth. Mismanaged urbanization will impose social and environmental costs that will be difficult to reverse.
In many countries, this urbanization trend is playing out within the context of increased decentralization and fiscal adjustment, and local governments are increasingly responsible for the provision and financing of public infrastructure for their constituencies. This has placed an increased strain on local financing resources and led to an emphasis on the development of local credit markets and resorting to public-private partnerships (PPPs).