An alternate methodology for the evaluation of the performance of basic sanitation

Purpose - The purpose of this research is to identify and examine the main factors which have explained the sanitation companies' performance and to expand the information on basic sanitation as a way of subsidizing the planners of this important component in the population's quality of life.Design methodology approach - The methodological approach used consisted of the selection of a set of 36 indicators from the 26 sanitation companies regarding the year 2003, divided into two groups, with the intent of avoiding spurious correlations. The groups were separated, taking into account their economic, financial and operational features. Subsequently, the indicators were submitted to the factorial analysis, by using the method of the main components extraction.Findings - Based on variables examined it was possible to identify the Operational Management factors: Monitoring and control; Water demand management; Sewage coverage; Urban structure; Environmental protection; Disposition and use of the urban space; Economic and financial capacity; Tariff policies; Collection efficiency; and Liabilities quality as the most representatives ones and those which can better explain the Sanitation Companies' performance.Practical implications - The results achieved from the factorial analysis intend to be a contribution to the formulation of management actions for the sanitation companies. They may also be used in a city or in a set of cities as a subsidy to the elaboration of various policies.Originality value - This article is an innovation as far as it applies the multivariate analysis for the construction of factors which explain the sanitation companies' performance.