Performance of management contracts in small towns water services

Although national and international institutions have put much effort in the field of water supply improvement during the last few years, coverage figures are still low. Many developing countries are taking initiatives to develop mechanisms of improving delivery of water supply services. One of the initiatives being employed is delegated management of water services to the private sector, through management contracts. Uganda started water sector reforms in 1997 and took steps to increase involvement of the private sector in management of its urban water services through management contracts in 2001. In Uganda, only 60% of urban areas and 55% of rural areas have access to improved water services. Against this background, this paper reports on research undertaken in Uganda, with the objective of analysing the performance of management contracts in the recent and still on-going reform and private sector participation process of the water sector. The research, which was undertaken as part of an MSc study, followed a case study methodology, and comprised a literature review, customer surveys, focussed group discussions and key informant interviews. The paper presents the research findings, and concludes that well planned and designed management contracts can potentially improve performance of small towns water systems for the benefit of the users of services.