Region: South Asia (SA)
Country: Vietnam
Keywords: Knowledge Lab, Perfomance contract
Document(s):
- Case Study on the Performance-Based Contract in Ho Chi Minh City180.37 KB
- Increasing Water Supply to Customers through a Performance-Based Contract for NRW Reduction532.65 KB
- Étude de cas de la Banque mondiale sur le contrat basé sur la performance conclu à Ho Chi Minh183.18 KB
- Amélioration de l'approvisionnement en eau auprès des clients à l'aide d'un contrat basé sur la performance visant à réduire l'E533.62 KB
- NRW-PBC Estudio de Caso Ho Chi Minh City180.98 KB
- Aumentando el abastecimiento de agua a clientes a través de un contrato basado en el desempeño para la reducción del NRW550.51 KB
Document Summary:
An NRW-PBC brought in a private firm to help HCMC save 122MLD of water. Reliability of supply improved, and new customers were connected to the network.
Performance-based incentives are effective, particularly when they are linked to water saved.
NRW-PBCs can achieve better and faster results than traditional contracts for leakage reduction.
Document Details:
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. In a different zone, SAWACO implemented a traditional approach for leakage reduction, with remuneration based on inputs instead of outputs. SAWACO chose to implement both approaches at the same time to learn the strengths and weaknesses of each approach.
Updated: April 12, 2022