Management Contracts and Water Utilities : The Case of Monagas State in Venezuela

The management contract for water and sanitation services in the Venezuelan state of Monagas, awarded in early 1997 to a Spanish firm, is one of very few signed and active management contracts in the water sector. Management contracts pose design c...

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Main Authors:	Mariño, Manuel, Stein, John, Wulff, Fransico
Format:	Viewpoint
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	CASH FLOW CENTRAL GOVERNMENT COLLECTION EFFICIENCY COMPETITIVE BIDDING COST RECOVERY CUBIC METER DELEGATION OF AUTHORITY EFFLUENT FIXED FEE FIXED MONTHLY PAYMENT INVESTMENT PLANNING LOCAL AUTHORITIES MUNICIPAL COUNCILS MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPALITIES PERFORMANCE INDICATORS POTABLE WATER PRIVATE OPERATOR PRIVATE PARTICIPATION PRIVATE SECTOR PUMPS REGULATORY FRAMEWORK SANITATION SERVICES SERVICE QUALITY TARIFF ADJUSTMENTS URBAN WATER WASTEWATER WATER DISTRIBUTION WATER PRODUCTION WATER QUALITY WATER SECTOR WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SUPPLY WATER UTILITIES WATER UTILITY WATER UTILITIES WATER INCENTIVES TECHNICAL ASSISTANCE WATER COLLECTION SYSTEMS INFRASTRUCTURE
Online Access:	http://documents.worldbank.org/curated/en/1998/12/2529401/management-contracts-water-utilities-case-monagas-state-venezuela http://hdl.handle.net/10986/11520

id	okr-10986-11520
recordtype	oai_dc
spelling	okr-10986-115202021-04-23T14:02:56Z Management Contracts and Water Utilities : The Case of Monagas State in Venezuela Mariño, Manuel Stein, John Wulff, Fransico CASH FLOW CENTRAL GOVERNMENT COLLECTION EFFICIENCY COMPETITIVE BIDDING COST RECOVERY CUBIC METER DELEGATION OF AUTHORITY EFFLUENT FIXED FEE FIXED MONTHLY PAYMENT INVESTMENT PLANNING LOCAL AUTHORITIES MUNICIPAL COUNCILS MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPALITIES PERFORMANCE INDICATORS POTABLE WATER PRIVATE OPERATOR PRIVATE PARTICIPATION PRIVATE SECTOR PUMPS REGULATORY FRAMEWORK SANITATION SERVICES SERVICE QUALITY TARIFF ADJUSTMENTS URBAN WATER WASTEWATER WATER DISTRIBUTION WATER PRODUCTION WATER QUALITY WATER SECTOR WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SUPPLY WATER UTILITIES WATER UTILITY WATER UTILITIES WATER SANITATION SERVICES WATER SECTOR INCENTIVES TECHNICAL ASSISTANCE WATER QUALITY WATER COLLECTION SYSTEMS INFRASTRUCTURE The management contract for water and sanitation services in the Venezuelan state of Monagas, awarded in early 1997 to a Spanish firm, is one of very few signed and active management contracts in the water sector. Management contracts pose design challenges. Their built-in incentives do not include equity at risk, so surrogate incentives must be designed, such as a performance bonus. Deciding how to award these contracts is also a challenge, because they lie somewhere between technical assistance (which should be awarded on the basis of skill and experience) and a lease (which should be awarded on the basis of price). It is too early to say whether management contracts can evolve into a more high-powered form of private participation like a concession. But the early operational results are very positive, and the experience sheds light on when a management contract is the right choice, how it should be designed to introduce the right incentives for the contractor and the public representatives, and what steps to take in awarding it. 2012-08-13T15:17:25Z 2012-08-13T15:17:25Z 1998-12 http://documents.worldbank.org/curated/en/1998/12/2529401/management-contracts-water-utilities-case-monagas-state-venezuela Viewpoint. -- Note no. 166 (December 1998) http://hdl.handle.net/10986/11520 English Viewpoint CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research Latin America & Caribbean Venezuela
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CASH FLOW CENTRAL GOVERNMENT COLLECTION EFFICIENCY COMPETITIVE BIDDING COST RECOVERY CUBIC METER DELEGATION OF AUTHORITY EFFLUENT FIXED FEE FIXED MONTHLY PAYMENT INVESTMENT PLANNING LOCAL AUTHORITIES MUNICIPAL COUNCILS MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPALITIES PERFORMANCE INDICATORS POTABLE WATER PRIVATE OPERATOR PRIVATE PARTICIPATION PRIVATE SECTOR PUMPS REGULATORY FRAMEWORK SANITATION SERVICES SERVICE QUALITY TARIFF ADJUSTMENTS URBAN WATER WASTEWATER WATER DISTRIBUTION WATER PRODUCTION WATER QUALITY WATER SECTOR WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SUPPLY WATER UTILITIES WATER UTILITY WATER UTILITIES WATER SANITATION SERVICES WATER SECTOR INCENTIVES TECHNICAL ASSISTANCE WATER QUALITY WATER COLLECTION SYSTEMS INFRASTRUCTURE
spellingShingle	CASH FLOW CENTRAL GOVERNMENT COLLECTION EFFICIENCY COMPETITIVE BIDDING COST RECOVERY CUBIC METER DELEGATION OF AUTHORITY EFFLUENT FIXED FEE FIXED MONTHLY PAYMENT INVESTMENT PLANNING LOCAL AUTHORITIES MUNICIPAL COUNCILS MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPALITIES PERFORMANCE INDICATORS POTABLE WATER PRIVATE OPERATOR PRIVATE PARTICIPATION PRIVATE SECTOR PUMPS REGULATORY FRAMEWORK SANITATION SERVICES SERVICE QUALITY TARIFF ADJUSTMENTS URBAN WATER WASTEWATER WATER DISTRIBUTION WATER PRODUCTION WATER QUALITY WATER SECTOR WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SUPPLY WATER UTILITIES WATER UTILITY WATER UTILITIES WATER SANITATION SERVICES WATER SECTOR INCENTIVES TECHNICAL ASSISTANCE WATER QUALITY WATER COLLECTION SYSTEMS INFRASTRUCTURE Mariño, Manuel Stein, John Wulff, Fransico Management Contracts and Water Utilities : The Case of Monagas State in Venezuela
geographic_facet	Latin America & Caribbean Venezuela
relation	Viewpoint
description	The management contract for water and sanitation services in the Venezuelan state of Monagas, awarded in early 1997 to a Spanish firm, is one of very few signed and active management contracts in the water sector. Management contracts pose design challenges. Their built-in incentives do not include equity at risk, so surrogate incentives must be designed, such as a performance bonus. Deciding how to award these contracts is also a challenge, because they lie somewhere between technical assistance (which should be awarded on the basis of skill and experience) and a lease (which should be awarded on the basis of price). It is too early to say whether management contracts can evolve into a more high-powered form of private participation like a concession. But the early operational results are very positive, and the experience sheds light on when a management contract is the right choice, how it should be designed to introduce the right incentives for the contractor and the public representatives, and what steps to take in awarding it.
format	Publications & Research :: Viewpoint
author	Mariño, Manuel Stein, John Wulff, Fransico
author_facet	Mariño, Manuel Stein, John Wulff, Fransico
author_sort	Mariño, Manuel
title	Management Contracts and Water Utilities : The Case of Monagas State in Venezuela
title_short	Management Contracts and Water Utilities : The Case of Monagas State in Venezuela
title_full	Management Contracts and Water Utilities : The Case of Monagas State in Venezuela
title_fullStr	Management Contracts and Water Utilities : The Case of Monagas State in Venezuela
title_full_unstemmed	Management Contracts and Water Utilities : The Case of Monagas State in Venezuela
title_sort	management contracts and water utilities : the case of monagas state in venezuela
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/1998/12/2529401/management-contracts-water-utilities-case-monagas-state-venezuela http://hdl.handle.net/10986/11520
_version_	1764417031995654144

Management Contracts and Water Utilities : The Case of Monagas State in Venezuela

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