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  • Volume 9, Issue 3

Using internal incentive contracts to improve water utility performance: the case of Uganda's NWSC

Silver Mugisha, Sanford V. Berg, William T. Muhairwe
Published June 2007, 9 (3) 271-284; DOI: 10.2166/wp.2007.010
Silver Mugisha
Institutional Development and Performance Management Expert, National Water and Sewerage Corporation Plot 23, Jinja Road, PO Box 7053, Kampala, Uganda
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Sanford V. Berg
Corresponding author. Public Utility Research Center, University of Florida, Warrington College of Business, 318 Matherly Hall, PO Box 117142, Gainesville, FL .32611-7142, USA Tel: 352-392-0132Fax: 352-392-7796. Email: sberg@ufl.edu
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William T. Muhairwe
Institutional Development and Performance Management Expert, National Water and Sewerage Corporation Plot 23, Jinja Road, PO Box 7053, Kampala, Uganda
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Abstract

The achievement of Millennium Development Goals (MDGs) by 2015 requires significant managerial innovation and creativity, especially in low-income countries where utility inefficiencies are still most prevalent. This paper describes approaches that have been used in Uganda's National Water and Sewerage Corporation (NWSC). We outline the potential for internal incentive contracts in delivering efficiency gains under public–public water management settings. No simple recipe for promoting efficiency exists. However, this paper highlights useful ingredients, including proper contract framework design, competition for managerial responsibility, effective business planning, performance monitoring and the use of managerial incentives. We conclude that these factors require careful consideration during the planning and implementation of incentive contracts.

  • Contracts
  • Incentives
  • Performance
  • Uganda
  • Water utility
  • Received April 26, 2005.
  • Accepted March 29, 2006.
  • © IWA Publishing 2007

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Water Policy: 20 (2)
  Volume 9, Issue 3

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Using internal incentive contracts to improve water utility performance: the case of Uganda's NWSC
Silver Mugisha, Sanford V. Berg, William T. Muhairwe
Water Policy Jun 2007, 9 (3) 271-284; DOI: 10.2166/wp.2007.010
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Using internal incentive contracts to improve water utility performance: the case of Uganda's NWSC
Silver Mugisha, Sanford V. Berg, William T. Muhairwe
Water Policy Jun 2007, 9 (3) 271-284; DOI: 10.2166/wp.2007.010

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Keywords

Contracts
Incentives
Performance
Uganda
Water utility
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