PPPs Funding New Water Infrastructure

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PPPs Funding New Water Infrastructure

As the public sector is getting more and more limited, Public Private Partnerships (PPPs) are becoming a popular tool for funding new water infrastructure projects around the world.

In the water supply and sanitation sector, ensuring access and service quality is often challenged by a range of factors including population growth, rapid urbanization, climate change as well as aging infrastructure.

Despite governments around the world making significant amounts of investment in the water supply and sanitation sector, infrastructure investment has fallen behind with the cumulative investment gap expected to widen over the coming decades: In the United States, over $655 billion in water infrastructure is needed over the next 20 years to keep pace with projected investment needs.

The rise of Public Private Partnerships

PPPs involve the private sector exclusively operating, maintaining and carrying out the development of infrastructure or providing services of economic benefit. Governments at all levels often turn to PPPs when facing:

Overall, the goals of PPPs are to exploit synergies in the joint innovative use of resources and the application of management knowledge for the optimal attainment of the goals of all parties involved.

PPPs in Kuwait

Kuwait has embarked on a PPP program that promotes collaboration between the public and private sectors to develop quality infrastructure and services for Kuwaiti citizens. To facilitate PPPs, Kuwait has established the Partnerships Technical Bureau, which aims to utilize private sector skills and expertise in the development of projects in the water, as well as the power, sector.

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Kuwait's PPP drive

Kuwait’s PPP desalination project

One project that is underway is the Independent Water and Power Producer (IWPP) Project. The IWPP Project aims to generate power with a maximum capacity of 2,500MW through a conventional thermal steam power plant. The electricity generated will then power an on-site seawater desalination plant that will provide a total minimum capacity of 125 million gallons of water per day.

The IWPP Project will be set up as a Special Purpose Vehicle, which will design, build, finance, operate and maintain the power generation and water production facility for a fixed duration of time. The Special Purpose Vehicle will sign an Energy Conversion and Water and Power Purchase Agreement with the Ministry of Electricity and Water.

The take-out

PPPs enable the innovative use of public and private sector resources and capital to achieve social outcomes beneficial for all.

*Robert C. Brears is the author of Urban Water Security (Wiley) and founder of Mitidaption, which consults on climate change risks to business, governance and society.

Facebook: UrbanH20

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http://markandfocus.com/2017/03/01/ppps-funding-new-water-infrastructure/

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1 Comment

  1. Bonjour 

    Je pense que le problème ne tient pas dans le partenarait Public-Privé. Il tient surtout dans une réglemantation figée dépassée non fonctionnelle et non perfomante 

    Pour exemple les infrastructures de réseau d'assainissement ont un coût financier pharaonique en rapport de l'inefficacité totale et une performae épuratoire proche de ZERO avec un production de résidus de boue démentielle.

    L'infrastructure d'assainissement individuel est 1000 fois moins couteuse avec une  performance épuratoire -biologique- de près de 98%  sans aucune production de boue.

    Tant que l'on restera dans cette logique rien en changera même avec un partenariat Public-Privé

    De nos jours et votre document le priuve on ne parle pas de recherche de performance  

     

    Hello I think that the problem is not in the Public-private partnership. He holds especially in a nonfunctional exceeded frozen paralegal and no perfomance for example sanitation infrastructure have a pharaonic financial cost in relation to the total inefficiency and a purification performae close to ZERO with a production of residues of insane mud.

    Individual sanitation infrastructure is 1000 times less expensive with a - biological - purification performance of nearly 98% without any production of mud.

    As long as you remain in this logic nothing change even with a Public-private partnership

    Of our days and your the priuve document is not performance research