Case Study: Performance-based Contract for NRW Reduction and Control New Providence, Bahamas

Jan 2018
Riquelme, Rodrigo;Mellinger, Yvon;Cayetano, Evan
The purpose of this case study is to review the context, preparation and implementation progress of the Bahamas Water and Sewerage Corporation’s (WSC) Performance-based Contract (PBC) for Non-Revenue Water (NRW) management in New Providence, Bahamas. This innovative contract was implemented as part of the IDB Loan Project: WSC Support Program – New Providence Water Supply and Sanitation Systems Upgrade (BH-L1028). Specialists at IDB, at other international organizations and managers and policymakers at the country / utility levels in the LAC Region will gain an in-depth look into how this project was formulated, and how it was, and is still, being implemented and monitored. They can also gain lessons of experience on NRW and the use of PBCs from the experience of the Bahamas. The Bahamas is overstressed on water availability, and New Providence is one of the most overstressed areas in the Caribbean. WSC began operations in 1976 under times of water stress and rationing, but in good financial condition. Looking forward, WSC’s main development strategy was to continually add small increments of production capacity to be able to meet demand with a narrow margin. As time went on, wells and barged water supplies became far less attractive, due to salinization of many aquifers and logistical difficulties with barging. At this time, desalination is the only viable source of water for New Providence, in spite of its cost.