The World Bank's Water and Sanitation Program (WSP) examined eight water utility PPPs. These PPPs varied in contract type (e.g., concession, lease, management, build-operate-transfer for bulk water supply), procurement pathway (solicited vs. unsolicited), and legal basis. They also ranged in size, from 700 connections in municipal areas to over a million connections in one of the Metro Manila concessions. Despite these differences, all eight utilities found a way to remain viable while meeting performance standards. Results from the eight case studies suggest that it is not so much who initiates a deal as much as it is how the deal is signed off and managed in the course of the PPP, including how financing flows from the public and private financing sources.
An LGU considering PPP in water supply needs to make four key decisions:
- Decision 1: What institutional arrangement is most appropriate?
- Decision 2: What do the consumers want?
- Decision 3: How will the PPP be financed? and Decision 4: What contractual arrangement is the most sustainable for this situation?
Publication Date: 05.2015