PMR cover.psd - ppiaf

a piece of legislation that aims to promote PPPs by providing an offi cial framework for public and private entities to
enter into such agreements.
PPIAF is expected to spearhead private participation in infrastructure activities in the region by piloting cutting-edge
interventions and consolidating know-how that will benefi t initiatives worldwide. A good example of this is a recent
activity with the Brazilian Forestry Service, which is in charge of awarding concessions for forest management of
federal public forests in Brazil. Forest concessions on publicly-owned land can play a crucial role in the promotion
of sustainable forest management and the reduction of illegal logging or forest conversion. The Brazilian federal
government’s Forest Concession Program intends to create a new paradigm for forestry production in the Amazon,
ensuring social control over this activity, fi ghting illegal land occupation, and inducing players in the logging sector
to adopt a sustainable and business oriented behavior in their activities.
Honduras: Support to Non-Revenue Water Performance-Based Contracting
PPIAF Funding: $75,000
Background: Access to water and sanitation services improved in
Honduras in the 1990s, in both rural and urban areas. However, the
sector’s weak institutional framework and competition between
national, state, and municipal actors led to a lack of planning,
inadequate regulation of operators, and poorly-defi ned policies.
In 2003 the government of Honduras passed the Drinking Water
and Sanitation Sector Framework Law, which created a central
policy-making council (CONASA) and an independent regulatory
agency (ERSAPS). The law also decentralized water and sanitation
services, shifting the responsibility for operations from the national
water and sewerage agency (SANAA) to municipalities.
PPIAF’s Contribution: PPIAF assistance was requested in 2008 to support a non-revenue water (NRW)
performance-based management contract for SANAA’s operations in Honduras’ capital city, Tegucigalpa
Metropolitan District. The contract was piloted by a World Bank project to demonstrate how the private sector
can be used as an effi cient means to achieve signifi cant improvements in operational and fi nancial performance.
PPIAF funded several elements to ensure the contract design refl ected international best practice in NRW
management, including training for SANAA staff on management and NRW contracts and a report on the
lessons learned from the design and bidding process.
Outcomes: The $6.5 million NRW contract went into effect July 1, 2011, and was awarded to a consortium
made up of ACC Ingenieria SAS, Radian Colombia SAS, and Veritec Consulting Inc. The consortium’s obligations
under the contract include: assessing the current conditions of the water supply; implementing minimum cost
interventions to improve service reliability and hours of service; and reducing both physical and commercial
losses to improve the utility’s income.