The draft agreement contains exemption provisions (C.1.10) and contains a well-developed dispute resolution provision (CL 9). Contract for the operation and maintenance of water and sanitation systems in a city in the medium term (7 to 15 years) Private operator`s participation in the commissioning and maintenance of a municipal water and sanitation system, in which the owner seeks to improve the supply and quality of services (focused on water service) and to reduce losses and deficits. The host government`s objective is (i) to improve and expand the current drinking water system to ensure a 24-hour water supply, improve drinking water quality, expand the customer base, ensure effective wastewater treatment and disposal, improve water supplies to poor and backward communities, and ensure financial self-sufficiency. This form of contract is useful as the first management contract, as part of a private sector participation process, in which the performance of a water system is uncertain and the government is prepared to maintain and maintain the risk of operating assets. It has clear incentives to improve standards and efficiency. Owners to provide electricity (increased rates will reset the balance of the contract). In most contracts, the operator will get his own electricity system – an important issue, because electricity is one of the biggest costs for operating a water system. Management contract based on the performance of the water and sanitation operator for the operation, management and maintenance of municipal water facilities (raw and drinking) and certain sewage treatment plants. Experience Since coming into force (including possible amendments) / project, if applied: clear provisions on changes in circumstances and changes (Article 20) of dispute resolution – the contract provides for negotiation, mediation and arbitration. Circumstances in which the contract may be appropriate: significant investments are needed to improve assets, reduce leakage and increase frequency (with the aim of increasing the load by 24/7) based on the performance associated with reducing the utility`s deficit each year (by reducing leaks and non-revenue links, increasing revenue through better billing and higher rates). Possible additional provisions to be included, if any, are: Existing workers are transferred (or seconded to the operator) to manage and carry out capital transactions in accordance with an agreed investment programme.

Calibration period (point 5) – particularly useful when data or wealth records are not available or unreliable under the contract In order for the count to be carried out on behalf of the operator, the wording must reflect it.

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