Designing effective contracts for small-scale service providers in urban water and sanitation

Extending water and sanitation services to the urban poor will often involve contractual relationships between small-scale entrepreneurs and municipalities or utilities. The expectation is that poor communities are more likely to receive improved services when delivery is formalised under contractual agreements that provide clarity to all parties, as well as systems for enforcement of contractual obligations. This Topic Brief draws on WSUP’s experience in the six-city African Cities for the Future (ACF) programme to illustrate ways of dealing with the challenges that arise when developing contracts between large and small service providers in the urban setting. The Topic Brief gives practical guidance for programme managers on how to make contracts of this type more effective and more enforceable. [authors abstract]