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Management contracts and water utilities : the case of Monagas State in Venezuela (英语)

The management contract for water and sanitation services in the Venezuelan state of Monagas, awarded in early 1997 to a Spanish firm, is one of very few signed and active management contracts in the water sector. Management contracts pose design challenges. Their built-in incentives do not include equity at risk, so surrogate incentives must be designed, such as a performance bonus. Deciding how to award these contracts is also a challenge, because...
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