March 2015: The Inter-American Development Bank (IDB) and the International Water Association (IWA) have jointly developed and established the world’s first rating agency for the water sector. The agency, called AquaRating, helps water and sanitation utilities improve management and performance; establishes the international standard for assessing water and sanitation services provision; and provides an impartial and credible evaluation of performance and management practices.

AquaRating assesses water and sanitation service providers based on performance indicators, best practices and information quality. It evaluates providers using 112 elements across eight areas: service quality; investment planning and implementation efficiency; operating efficiency; business management efficiency; financing sustainability; access to service; corporate governance and environmental sustainability. It validates information through an independent auditing process to improve accountability and transparency.

IWA and IDB pilot tested AquaRating in 13 utilities in nine countries in Europe and Latin America and the Caribbean. A global launch is expected later in 2015.

Ger Bergkamp, IWA Executive Director, said the rating system will improve utility performance, which is critical to delivering more effective and efficient services. Sergio Campos, IDB, highlighted the role of the rating system in enabling better planning and decision-making processes for the utilities’ management to achieve sustainable and efficient outcomes. [IDB Press Release] [IWA Website] [Aquarating Website]