Using Performance-Based Contracts to Reduce Non-Revenue Water in Philippine Water Districts

Performance contracting provides a more effective means of incentivizing contractors to reduce non-revenue water (NRW) than traditional public sector, input-based, contracting can achieve. Water districts in the Philippines can use the currently unrealized value of NRW from leakage and inaccurate metering to finance the specialized expertise and equipment needed to reduce water losses.

The Philippine Water Revolving Fund (PWRF) created this report, which reviews examples of performance-based contracts used to reduce NRW in six countries, finding that most of the NRW is caused by physical water losses, most the physical water losses are caused by leaks in the distribution network, and most of the leaks in the distribution network are on customer service connections.