Performance Monitoring Process in Asset Recycling
The contract management team should develop a process to monitor performance. Find an illustration of a typical process in this section.
Case Study on the Performance-Based Contract in Ho Chi Minh City
In 2005, Vietnam’s largest city, Ho Chi Minh City (HCMC), did not have enough water supply to meet demand. More than 40 percent of the water produced was lost as leakage. Supply was intermittent. To increase supply to customers, the state-owned water utility, Saigon Water Corporation (SAWACO), competitively procured a contractor to enter a performance-based contract (PBC) for non-revenue water (NRW) reduction, with a focus on leakage reduction in one of its six hydraulic zones.
Performance Requirements
This section describes in more detail the range of PPP contract types under the definition of PPP used in this Reference Guide; and some of the more common terminology used globally to describe PPPs.
Energy Agreements
A public-private partnership for an energy project requires a number of agreements to set out the relationships between the different stakeholders. For a full description of the main relationships in PPPs more generally, please, see Concessions, Build-Operate-Transfer, Design-Build-Operate. This section explores the agreements specific to an energy project.
Utility Restructuring, Corporatization, Decentralization, and Performance Contracts
A government considering ways of improving performance in its utilities may seek to achieve this by involving the private sector through one the forms of PPP Project discussed in Agreements.
PPP Arrangements/Types of PPP Agreements
Public-private partnerships (PPPs) take a wide range of forms varying in the extent of involvement of and risk taken by the private party. The terms of a PPP are typically set out in a contract or agreement to outline the responsibilities of each party and clearly allocate risk. The graph below depicts the spectrum of PPP agreements.