Independent Assessor for Performance Based Water Operator Partnership Contract

Country: Malawi

Project period: 10/2015 - 09/2019

Client: Lilongwe Water Board (LWB)

Investment amount: EUR 62,500 (consulting)


The aim of this assignment is to monitor and assess the services provided by Vitens-Evides International (VEI) to Lilongwe Water Board (LWB), the utility of the capital of Malawi serving almost a population of 1 million, through a Performance Based Water Operations Partnership (PBWOP) agreement.

The objective of this agreement is to improve the operational and financial efficiency of Lilongwe’s water service provider, to extend its service area and to reduce non-revenue water. To secure the future water supply situation LWB is planning to implement investments for more than USD 100 million over the next years and in the light of these challenges ahead was seeking the support of an international advisory firm.

The role of P&P as the Independent Assessor is to check yearly the performance of VEI, monitor the overall progress within the various tasks and ultimately to calculate the performance based compensation which VEI is entitled to according to their agreement with LWB.

Services provided:
  • At the start of the assignment, assist LWB and VEI with regard to the methodology for annual performance assessment;
  • Once every year for four years, following the end of each Agreement Year (AY), assess the performance within the PBWOP;
  • Based on the Annual Performance Assessment, determine the PBC payable to VEI;
  • After the second AY review of Performance Targets for the remaining years, if so initiated and proposed by one of the PBWOP parties;
  • Resolve any disputes between VEI and LWB on the calculation of the PBC.

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