'Public-Private Partnerships for Urban Water Utilities: A Review of Experiences in Developing Countries' analyzes the market growth of Public-Private Partnerships (PPPs) in the developing world since 1990, and the performance of more than 65 large water PPP projects representing more than 100 million people for access, service quality, operational efficiency, and tariff levels. Although a relatively small portion of the water utilities in the developing world are operated under PPPs (about 7 percent in 2007), the urban population served by private water operators has grown every year since 1990. Despite many difficulties encountered by PPP projects and a few contract terminations, a large majority of contracts awarded since 1990 are still in place. The track record for improving service and efficiency reaffirms the value of PPPs to help turn around poorly performing water utilities, even though the level of private financing did not match initial expectations. Over time, a more realistic market has developed, the number of private investors from developing countries has grown, and contract designs have become more pragmatic concerning risk allocations between partners. The water sector has many features that set it apart from other infrastructure sectors. This book suggests the need for careful consideration of those specificities to successfully involve private operators. Although concessions with private financing have worked in a few places, contractual arrangements that combine private operation with public financing appear to be the most sustainable option in many countries. Policy makers, stakeholders, and donors need to remain heavily engaged in the water sector, especially in the poorest countries and during a global financial crisis. This book contributes to a better understanding of the various options to tackle the many challenges of providing water and sanitation services to urban populations in the developing world.

There is no question that water pricing and public-private partnership can improve water management practices in the future. However, this concept is neither the cure-all many proponents argue, nor the disaster its opponents forecast. Providing a comprehensive and objective assessment of what does and does not work, where, why and under what circumstances, this informative collection assesses the social, economic, equity and institutional implications. This cohesive set of carefully selected essays, the result of The Third World Centre for Water Management and the Inter-American Development Bank's decision to objectively and critically assess the experiences in these areas, transcends the current dogmatic debate on these complex issues. Providing an in-depth analysis and assessment of the main issues and constraints of water pricing, private sector participation and their affect on water supply, the collection draws on illustrative case studies from Argentina, Brazil, the USA and Western European countries amongst others. This is a special issue of the Journal of Water Resource Development.

Ensuring quality and affordability in the water services is a fundamental requirement for the social, economic and environmental development of modern societies. Achieving this goal requires dealing with a large diversity of challenges, such as efficiency, investment, governance, procurement and sustainability, while ensuring the alignment of the stakeholder's objectives, often with conflicting expectations. Public-private Partnerships (PPPs) have emerged as a desirable model for Governments to develop and improve water services, particularly due to the shortage of public financing. Although PPPs have proven to be able to deliver value for money in public services provision, the empirical evidence also shows that there are significant risks in the use of this procurement model. Public-Private Partnerships in the Water Sector: From Theory to Practice provides an integrated overview of the life-cycle process for successfully developing and managing PPPs, from the preliminary studies and public tender stage to the contract management and regulation, and also addressing the critical issues on contract design. It provides the theoretical background for the use of PPPs, and addresses the challenging question of implementing and managing PPPs in developing economies. This is a unique manual for those engaged in the water sector and, particularly for Central and Local Governments, private sector operators and academics dealing with the provision of water services and private sector participation in public services. Contents Introduction to the PPPs; The Water sector and the potential use of PPPs; The design of the PPPs contracts: the major Y and N; The preliminary studies and the public tender stage; The contract risk matrix and the problem of renegotiation; The contract management and the regulation of PPPs; The case of institutionalized PPPs or the mixed companies; The use of PPPs in the developing world; The worldwide experience of PPPs in the water sector; Best practices case studies; Concluding remarks Authors: Rui Cunha Marques - Instituto Superior Técnico - Universidade de Lisboa - Lisbon - Portugal Carlos Oliveira Cruz - Instituto Superior Técnico - Universidade de Lisboa - Lisbon - Portugal

Public sector funding and resources are often inadequate to meet increasing demands for investment and effective management, and a growing case history shows increasing involvement by the private sector in provision of infrastructure and services through PPP arrangements. The objective of this book is to determine, and make recommendations on, means of optimizing the use of Public Private Partnerships (PPP) in development of infrastructure whilst ensuring the sustainable long term provision of water and waste water services. The focus is on providing detailed recommendations on contractual issues and contract structures to achieve this objective. Public Private Partnerships in the Water Sector - Innovation and Financial Sustainability: Identifies what is needed to establish effective and sustainable water and wastewater service reform when using a PPP arrangement, and importantly how those issues can be addressed contractually. Provides specific recommendations of a comprehensive and detailed approach to contract drafting to ensure effective, sustainable and long term provision of water and wastewater services, including an approach for adaptation of public procurement procedures for PPP arrangements. Recommends a proposed approach to dealing with the influence of imperfect or unavailable data on the long term effectiveness or sustainability. This is a practical and pragmatic book in which the authors share their considerable experience on devising and implementing PPPs in the water sector. It is aimed primarily at practitioners working with developing countries but its recommendations will also be suitable for application in developed countries. It is also a useful reference for postgraduates and academics studying infrastructure development. See also: Public and Private Participation in the Water and Wastewater Sector - Developing Sustainable Legal Mechanisms, Cledan Mandri-Perrott, 2009 Private Sector Participation in Water Infrastructure, Organisation for Economic Co-Operation and Development (OECD), 2009.

Infrastructural investment is critical to economic growth, quality of life, poverty reduction, access to education, health care, and the achievement of many of the goals of a robust economy. But infrastructure is difficult for the public sector to get right. Public–private partnerships (PPPs) can help; they can provide more efficient procurement, focus on consumer satisfaction and lifecycle maintenance, and provide new sources of investment, in particular through limited recourse debt. But PPPs present challenges of their own. This book provides a practical guide to PPPs for policy makers and strategists, showing how governments can enable and encourage PPPs; providing a step-by-step analysis of the development of PPP projects; and explaining how financing works, what contractual structures look like, and how risk allocation works in practice. It includes specific discussion of each infrastructure sector, with a focus on the strategic and policy issues essential for successful development of infrastructure through PPPs. This second edition includes new sections on institutional frameworks, mechanisms for leveraging public financing, small scale PPP projects and more.

Under the joint initiative of the Government of India and the Asian Development Bank (ADB), "Mainstreaming PPPs in India," ADB supports state public–private partnership (PPP) cells in several challenging sectors in state-specific activities to arrive at possible PPP structures. In Maharashtra, ADB supported the Department of Urban Development and Water Supply and Sanitation to develop possible PPP structures in the water supply and sanitation sector. After studying possible PPP structures, their applicability in the context of selected sample cities were assessed leading to the development of proposed term sheets, which were identified as suitable and feasible for implementation. This tool kit is expected to assist the relevant public entities in Maharashtra state for developing PPP-based projects in water supply and sanitation, and may also be used as reference by similar other cities across the country.

This book highlights good practices and summarises what countries should consider before entering into public-private partnerships (PPPs).