Improving Utility Performance in Fragile Environments : Lessons from Liberia Water and Sewer Corporation in Liberia and Guma Valley Water Company in Sierra Leone
This note summarizes lessons from theWater and Sanitation Program’s (WSP) technical assistance toimprove performance and cost-recovery at the Liberia Waterand Sewer Corporation (LWSC) and Sierra Leone’s Guma ValleyWater Company (GVWC). The focus on cost-recovery reflectsits critical importance to the viability of utilities. Thereare ‘almost no examples in developing countries’ ofutilities ‘whose operating revenues are significantly belowO&M costs and that are nevertheless able to develop andmaintain their infrastructure and provide a reliable andefficient service’. (McPhail, et al., 2012). WSP’s technicalassistance sought to strengthen reform efforts initiated bythe management teams at LWSC and GVWC by improving theutilities’ ability to sustainably fund their operations.Three aspects of cost-recovery were prioritized: (a)improving metering, billing and collection processes (b)reducing commercial non-revenue water and (c) investigatingoptions to expand the utilities’ revenue base by connectingnew customers more effectively.