PRIVATE SECTOR PARTICIPATION IN THE WATER SECTOR: OPTIMAL ALLOCATION OF RISK

摘要

Governments throughout the world have been using public private partnerships (PPPs) over the past 20 years for three key reasons. First, PPPs have been effective in helping governments respond to the increasing demand for infrastructure-related services. Second, by shifting the burden of capital spending to the private sector, PPPs can help governments do more with less. Third, PPPs contribute to enhanced efficiency in delivering services. PPPs are not, however, the answer to all infrastructure or public service shortcomings. Successful PPPs require careful risk allocation and a strong enabling environment, which are a challenge to achieve. In addition, most PPP failures arise from poor contract preparation, inadequate risk allocation, the absence of competitive and transparent tendering procedures, and poor contract monitoring and enforcement systems. There are a wide range of approaches for enhanced private sector participation in water which have been commonly used around the world in different circumstances. Experience has been mixed: there has been considerable success but also many examples where desired outcomes have not been achieved. The purpose of this paper is to set out the scope and range of PPP models, to aid in the selection of the most appropriate form of PPP and set out options for optimal risk allocation for enhanced private sector participation.