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Partnerships between private companies and governments offer benefits to both parties. For example, private sector technologies and innovations can help improve the operational efficiency of public service delivery. The public sector, for its part, encourages the private sector to carry out projects on time and within budget. In addition, the creation of economic diversification makes the country more competitive by facilitating its infrastructure base and promoting construction, equipment, support services and other related enterprises. Research has shown that, on average, governments pay more for PPP projects than for traditional publicly funded projects. [45] [46] These higher P3 costs are due to these systemic factors: the agreement, awarded in 2017 following an international call for tenders, is part of the Senegalese government`s ambitious reform strategy and will support the program to improve transport and urban mobility. Thales` end-to-end solution includes financing, design, construction, operation, maintenance, management and training with the transfer of skills to government agencies. In addition, four new sites have been created, including the main center of the country`s capital, Dakar, where documents are customized. Key functions include collecting biometrics, verifying identity, and collecting revenue on behalf of the government. The government sometimes makes in-kind contributions to a PPP, particularly when transferring existing assets. For projects aimed at creating public goods, such as in the infrastructure sector, the government may provide a capital grant in the form of a one-off grant to make the project economically viable. In other cases, the government may support the project through tax grants, including tax breaks, or guaranteed annual revenues for a given period.
In all cases, partnerships involve a transfer of significant risks to the private sector. [33] [34]. Since P3s are directly responsible for a variety of activities, they can evolve into monopolies motivated by rent-seeking behavior. [12] Nearly fifty percent of the population in developing countries – 2.5 billion people – do not have improved sanitation, and nearly 1 billion people still use unsafe sources of drinking water, and even those who do receive them often receive dangerous and inadequate services. Goal 6 for the sustainable development of safe drinking water and sanitation by 2030 sets ambitious goals: 6.1 Ensure universal and equitable access to safe and affordable drinking water for all 6.2 Achieve adequate and equitable sanitation and hygiene for all 6.4 Significantly increase water use efficiency in all sectors. Water is also crucial for food security and irrigation and is affected by climate change. In an infrastructure-intensive sector, improving access and quality of service to achieve the SDGs cannot be achieved without massive investments. In developing countries, the water sector is chronically underfunded and inefficient. In this context, public-private partnerships (PPPs) (among others) can be a mechanism to help governments finance much-needed investments and develop technologies and efficiencies that can improve the performance and financial sustainability of the water sector. Governments are increasingly using the financing and operation of bulk water supply and wastewater treatment in the water and sanitation sector. Governments are turning to PPPs to introduce new technologies and innovations where traditional sources are scarce, for example in. B desalination and water reuse.
Utilities rely on specific expertise such as reducing water without revenue management and pressure to achieve efficiency gains and improve services. Private investors and suppliers are increasingly local and regional, increasing competition and lowering prices. One of the main challenges for the sustainability of the sector is customer rates. Water utilities struggle to invest and maintain infrastructure if they cannot rely on revenue streams that cover operating and investment costs. While government grants and subsidies continue to play an important role in financing water and wastewater infrastructure, a stable source of revenue is more reliable and allows utilities to plan their activities and assets. Browse the following subsections for more information and examples of laws, regulations, and agreements. Regulation of the water sector Reform of water and sanitation companies Empresas Mixtas / Joint Ventures Urban agreements on water and sanitation Management, operation, maintenance contracts Concessions, design, construction and operation (BOD) and construction-operation-transfer (BOT) Lease and charterability agreements Rental and charterergy contracts Raw and treated water Bulk supply agreements Small water projects: Rural and Peri-Urban PPPs in Irrigation Theft / Toolkits on Non-Technical Losses – Water and Sanitation Further Reading – Case Studies and Lessons Learned Gender Mainstreaming in Water and Sanitation Projects Further Reading Case Studies Panama – Estudio de Caso – Contrato de mejoras integrales de los servicios de agua potable en el Distrito de Colón, Panama, Public-Private Infrastructure Advisory Facility (PPIAF), October 2014 (Spanish). China – Wastewater Treatment: A Case Study of Public-Private Partnerships (PPPs) in Shanghai, Asian Development Bank (AfDB) November 2010 Jordan – Water Governance in Jordan – Overcoming the Challenges of Private Sector Participation, Water Studies, Organisation for Economic Co-operation and Development (OECD), June 2014. Tunisia – Governance of Water Services in Tunisia – Overcoming the Challenges of Private Sector Participation, Water Studies, OECD, June 2014 (French). Public-Private Partnerships for Urban Water Services: A Review of Experiences in Developing Countries (2010) This report analyses the growth of the PPP market in developing countries since 1990 and the performance of more than 65 major water PPP projects representing more than 100 million people in terms of access, quality of service, operational efficiency and pricing levels. Water PPPs in Africa, World Bank Group, WSP, July 2014. Joint private-public companies “Empresa Mixta” (2011) This review of the Empresa Mixta model in Latin America was conducted to better understand its structure, applicability and strength in mitigating risks in the water and sanitation sector.
Ways To Improve Water Services by Making Utilities Accountable (2008) This review aims to help those who work in and with water utilities, as well as organized users, regulators and policy makers, improve the quality of water services by making service providers more accountable to the people they serve. Characteristics of Well-Performing Water Utilities – Working Notes on Water Supply and Sanitation (2006) This report provides an overview of the attributes of well-managed utilities and attempts to identify important factors that influence their performance. The scope is also largely focused on public services serving urban communities, but with different characteristics and service objectives. .
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