2007
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

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. Howev… Show more

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Cited by 28 publications
(18 citation statements)
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References 8 publications
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“…The findings have policy implications for goal setting and the design of managerial incentives. Mugisha et al (2007) pointed out the role of target-based incentives in enhancing performance; the current study reinforces this fact and calls for careful setting of goals that promote 'best in class' performance. Procedurally, the findings point towards a need to distil targets from a set of actual performance metrics, using DEA (for example), and incorporating these baselines in a negotiation process to obtain 'efficient' targets.…”
Section: Resultssupporting
confidence: 70%
“…The findings have policy implications for goal setting and the design of managerial incentives. Mugisha et al (2007) pointed out the role of target-based incentives in enhancing performance; the current study reinforces this fact and calls for careful setting of goals that promote 'best in class' performance. Procedurally, the findings point towards a need to distil targets from a set of actual performance metrics, using DEA (for example), and incorporating these baselines in a negotiation process to obtain 'efficient' targets.…”
Section: Resultssupporting
confidence: 70%
“…This has increased the concerns for the water quality in the bay (Birungi et al, 2007;Bomo et al, 2011;Kyambadde et al, 2006;Mugisha et al, 2007). In the present study, data are presented from both before and after the widening of the channel.…”
Section: Study Areamentioning
confidence: 97%
“…In turn, NWSC has developed a set of delegated management area contracts through which it monitors performance of its various urban centres. Through these arrangements, NWSC management and staff have incentives to perform efficiently, since their performance will affect their own compensation (Mugisha et al, 2007). less consistent payment behaviour, this problem would require some additional cost to maintain NWSC"s strong collections record (e.g.…”
Section: Problem Definitionmentioning
confidence: 99%