Performance-based Contract for Water and Sanitation Utility, Mexico
Mexico City was experiencing inadequate water service quality and poor technical and commercial efficiency. SACMEX, the public utility providing water and sanitation services to Mexico City, sought to replace existing commercial out-sourcing contracts with performance-based PPP contracts to improve service quality and affordability.
How Castalia helped
Assessed options for performance-based PPP arrangements
Developed the PPP contract, including performance monitoring indicators and compensation schemes to cover the cost of service, and strategies to reduce non-revenue water
Reviewed the tender documents and identified potential bidders.
The outcome of our work
Our analysis informed SACMEX’s decision to procure non-revenue water reduction contracts using a results-based compensation scheme.