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The Inter-American Development Bank (IDB), in cooperation with the International Water Association (IWA), has developed a rating system that assesses the performance of water and sanitation service providers in a comprehensive way. AquaRating: An international standard for assessing water and wastewater services aims to provide an industry standard for utilities. The innovative rating system seeks the improvement of the service delivered by means of a rigorous and systematic assessment. AquaRating comprises more than 100 assessment elements organized in eight rating areas: Service Quality, Efficiency in the Planning and Execution of Investments, Operating Efficiency, Business Management Efficiency, Financial Sustainability, Access to Service, Corporate Governance, Environmental Sustainability. Each of the assessment elements and consecutively rating areas is assigned a rating (from 0 to 100), which in turn are aggregated into a single rating for the utility. Assessment elements consist of qualitative good practices and quantitative indicators. The total compliance with practices and achievement of the most demanding indicators levels means delivery of an excellent service and, therefore, awards a maximum rating of 100 points. AquaRating takes into account the quality of the information supporting the ratings results by correcting the rating for the reliability level of such information. The rating results are certifiable thanks to an independent audit of the supporting information. The expected benefits of the system are manifold: • Utilities - Identify areas of improvement, receive guidance and monitor progress over time. - Obtain an external and credible performance rating, which contributes to foster reputation, accountability and acceptance by key stakeholders, gain access to new markets and finance, and attract qualified staff. - Get access to a knowledge and assessment framework that fosters continuous learning. • Governments, regulators and development agencies - Use the system to stimulate utilities to maintain or improve their performance and to target technical assistance and finance according to the specific opportunities for improvement identified. • Consumers - Obtain better services in terms of access, quality, efficiency, sustainability and transparency.
'Public-Private Partnerships for Urban Water Utilities: A Review of Experiences in Developing Countries' analyzes the market growth of Public-Private Partnerships (PPPs) in the developing world since 1990, and the performance of more than 65 large water PPP projects representing more than 100 million people for access, service quality, operational efficiency, and tariff levels. Although a relatively small portion of the water utilities in the developing world are operated under PPPs (about 7 percent in 2007), the urban population served by private water operators has grown every year since 1990. Despite many difficulties encountered by PPP projects and a few contract terminations, a large majority of contracts awarded since 1990 are still in place. The track record for improving service and efficiency reaffirms the value of PPPs to help turn around poorly performing water utilities, even though the level of private financing did not match initial expectations. Over time, a more realistic market has developed, the number of private investors from developing countries has grown, and contract designs have become more pragmatic concerning risk allocations between partners. The water sector has many features that set it apart from other infrastructure sectors. This book suggests the need for careful consideration of those specificities to successfully involve private operators. Although concessions with private financing have worked in a few places, contractual arrangements that combine private operation with public financing appear to be the most sustainable option in many countries. Policy makers, stakeholders, and donors need to remain heavily engaged in the water sector, especially in the poorest countries and during a global financial crisis. This book contributes to a better understanding of the various options to tackle the many challenges of providing water and sanitation services to urban populations in the developing world.
Examines key issues related to water resources management including governance and inadequate investment and maintenance, the need for an integrated policy approach, and the need for a strong evidence base to support policy development.