Issues of Efficiency for Public-Private Partnerships in the Water Sector (original) (raw)
Related papers
PUBLIC-PRIVATE PARTNERSHIPS AS MECHANISMS FOR RISK MANAGEMENT IN THE WATER SECTOR
have been long since used in the procurement and operation of water infrastructure, as shown in the first part of the paper. The main object of the paper is to highlight the mechanisms of PPP in the water sector and to suggest that in times of economic and financial distress, when both the public sector and the private sector face additional risks and challenges, various models of PPP may be used to manage and mitigate the risks and to improve performance in providing the public services of Water Supply and Sanitation (WSS). The economic and financial risks of the WSS sector are commonly classified in two broad categories but within these broad categories there are many more specific risks. Therefore, we shall analyse some of these main risks and their potential interrelations, by employing several methodologies: literature review, case studies, performance indicators, risk matrix, analysis and synthesis. The mechanisms, features and experiences of PPP in this branch of the water sector are summarized and comparatively analysed, from the viewpoint of risk sharing, leading to some conclusions and recommendations on the opportunity and effectiveness of implementing such arrangements especially in Romania.
Handbook of Research on Urban Governance and Management in the Developing World
The chapter examines the available designs and management styles of public-private partnership (PPP) in the water sector and how they can be used to realize the desired outcomes. The chapter applies a qualitative approach based on deductive methods where the design and management styles of PPP in water sector are analyzed through a review of documents from different sources. The chapter concludes that different PPP designs and management styles can be adopted according to the nature and objectives of the intended PPP venture. This reflects that there is not a universally perfect model that can be claimed to be the best for ensuring successful PPP. However, the success or failure of a PPP project partly depends on how the designing was done to meet the intended goal and how management of the joint venture is done to balance the interests of the parties involved.
Public Works Management & Policy, 2001
There is no empirical proof that private enterprises manage and operate facilities more efficiently than public ones. Instead of privatization, it is better to promote viable public-private partnerships and commercialization of services. The core businesses of water and sewage works should preferably be retained by a municipalityowned enterprise. In the selection of the mode(s) of water service implementation, one must consider the nature of the services, the long-term experiences, and transaction costs. The nature of water and sanitation service activity itself requires that long-term development should be considered in decision making. The institutional framework must be such that all parties benefit from cooperation. Whichever management or contract model is selected, the ownership of the utilities should preferably remain in the hands of municipalities whose decisions on services citizens should be able to influence through local democracy. The responsibility for arranging water services lies de facto with the public sector.
Applicability and Constraints of Delivering Water Infrastructure Via Public Private Partnership
Procedia - Social and Behavioral Sciences, 2014
The demand for water in the central coastal mining area of Namibia has been increasing in recent years and the public utility company responsible for bulk water supply is battling to keep pace. The study investigated whether the idea of developing a desalination plant had buy-in from stakeholders and whether they perceived Private Public Partnership (PPP) as an applicable approach to deliver the project. Methodology: The approach involved a review of literature followed up by a survey which utilised selfadministered questionnaires to collect data from 70 respondents from government, Public Utility Company and a number of water and mining consulting firms. Findings: Findings confirm the inadequacy of water sources to cater for the current and future mines' demand and to ensure long-term access to bulk water supply, the majority of respondents agree that developing a desalination plant would provide an alternative solution. However, majority of respondents indicate that to date, their institutions do not allocate sufficient budget towards new water infrastructure development and maintenance for the mines and therefore PPP would be an appropriate mechanism to develop the desalination facility. Research limitations: These include that PPP is a relatively new concept in Namibia especially in the water sector and a lack of representation from the local authority in the study. Value of the Paper: The study forms a basis to explore strategies and measures that could be put in place to facilitate the implementation of PPP as an alternative procurement route in the Namibian water sector to develop infrastructure to serve particularly the central coastal mining area. Conclusion: There is a need to develop new water infrastructure to meet the increasing demand in the central coastal Namibian mining area and alternative project delivery options must be explored.
This article reports the outcome of a performance study of the water service provision industry in Italy. The study evaluates the efficiency of 21 "private or public-private" equity and 32 "public" equity water service operators and investigates controlling factors. In particular, the influence that the operator typology and service management nature -private vs. public -has on efficiency is assessed. The study employed a two-stage Data Envelopment Analysis methodology. In the first stage, the operational efficiency of water supply operators is calculated by implementing a conventional BCC DEA model, that uses both physical infrastructure and financial input and output variables to explore economies of scale. In the second stage, bootstrapped DEA and Tobit regression are performed to estimate the influence that a number of environmental factors have on water supplier efficiency. The results show that the integrated water provision industry in Italy is characterized by operational inefficiencies of service operators, and scale and agglomeration economies may have a not negligible effect on efficiency. In addition, the operator typology and its geographical location affect efficiency.
This paper presents a framework for public-private partnerships PPP) in local government water services infrastructure. Water services infrastructure assets are key to the provision of basic services. Data were collected from various stakeholders, i.e. water boards, and private sector institutions. The framework for Public Private Partnerships (PPP) models comprises three categories, viz., state model, hybrid model and private sector model. Each of these models depends, amongst others, on the funding structure. Case studies for PPP models were drawn from the Limpopo and Gauteng provinces in South Africa. The outcome of this research confirmed that there are successful PPP models for local government water services infrastructure in South Africa. The success of such models depends to a greater extent on a number of variables such as: a. Technical/project risk, b. Financial risk, c. Contractual risk, d. Skills and knowledge transfer, e. Roles and responsibilities of state institutions...
This study evaluates the comparative advantages of public-private partnerships (PPPs) and (public-public partnerships) PuPs in urban water services. Based on literature analysis and case studies, past performance of PPPs and PuPs is reviewed against several criteria. Lessons are then identified regarding the barriers and enablers which determine the success of partnerships, and the kind of support donors could usefully provide. The study concludes that while the main determinant of performance is not public or private management but policy, institutions, finance and regulation, there are notable differences between what PPPs and PuPs can offer. In the right circumstances the private sector can improve in efficiency and management, but at high costs. PuPs generally have lower costs and greater focus on capacity building and equity, and have the potential to support more holistic approaches to urban services and the water cycle. Partnerships with local actors can also improve services...