Management Contracts and Water Utilities: The Case of Monagas State in Venezuela
Author: Manuel Marino, John Stein, and Francisco Wulff Date: 12/1/1998 (PDF, 200KB)
The management contract for water and sanitation services in the Venezuelan state of Monagas, awarded in early 1997 to a Spanish firm, is one of very few signed and active management contracts in the water sector. The early operational results are very positive, and the experience sheds light on when a management contract is the right choice, how it should be designed to introduce the right incentives for the contractor and the public representatives, and what steps to take in awarding it.