Results-Based Contracts for Rural Water Services
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report Jul 2020 ; 23 pages
Aut. Rob Hope & Duncan McNicholl & Alex Money
Ed. Uptime - Oxford
Downloadable format: PdF
(3 620 ko)
Downloadable from the publisher
Abstract:
We explore how concessionary funding through results-based contracts for waterpoint reliability, volumetric use, and local revenue generation might enable sustainable rural water services for 100 million people by 2030.
We explore how concessionary funding through results-based contracts for waterpoint reliability, volumetric use, and local revenue generation might enable sustainable rural water services for 100 million people by 2030. The ‘Uptime framework’ combines complementary and verifiable metrics to track progress towards reliable, equitable and sustainable services for all.
We assess the feasibility of this contract design using actual quarterly financial and operational data from 2,800 waterpoints that provided water for over one million people in four countries in 2019. Results show that infrastructure maintained by these service providers is functional for 94% of the time and users pay 30% of the total service cost.
Applied to 2019 performance, the proposed results-based contracts would have funded services for c. 1.2 million people with an external subsidy of USD 876,000 or approximately USD 0.69 per person. By transferring risk from donors to service providers, service providers can be paid in arrears after results are confirmed. These grants would provide a long-term financing modality of declining and targeted subsidies as services progress towards financial sustainability.
Keywords: |
costs, tariffs (CI) (DT) (ET) , management practices / governance (CI) (DT) (ET) , rural (CI) (DT) (ET) |
Publishers/Broadcasters: |
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Uptime - Oxford - United Kingdom |
Uduma - Ingré |
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