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IDB – Case Study for NRW Reduction and Control (New Providence, Bahamas)

Performance-based contracts can, under conditions delineated in this document, be a very effective, and, ultimately, cost-efficient mechanism for implementing NRW projects.The case of the WSC-Miya PBC in New Providence, Bahamas is a very good illustration of the attributes and benefits of a well designed PBC – 1) baseline study and target/plan adjustment period; 2) a “minimum scope” combined with flexibility for the contractor to adjust specific plans to the evolving situation, to both exceed targets and receive additional performance-based remuneration; 3) rapid NRW reduction, with its technical, financial and political benefits and results; 4) reduced project risk for the utility; 5) a lengthy maintenance phase to promote sustainability of the NRW reductions and 6) overall improvement of technical and financial performance at a competitive price.