Private Sector Engagement in Water Supply
Effective implementation of water projects requires interventions from both the public and private sectors. Recent trends indicate a growing interest in water PPPs, and more projects are coming under its ambit. Appropriate
interventions can help the private sector play a more significant role, especially in investment and service quality improvement. This report discusses how to engage the private sector in the drinking water sector.
The overarching goal is for all the players is to support each other. It is critical for the stakeholder, for-profit corporations, concessionaires, SWEs, NGOs, and various government authorities, to collaborate seamlessly to improve service delivery and ensure affordability. Some of the key recommendations of this landscape assessment are:
- Articulated policies to allow stakeholders and utilities to strengthen their position to PPPs in the water
sector - Improving the financial health of municipalities by reducing the NRW and engaging the private sector
participation in municipal bond issues - Realistic pricing, guidance on tariff structures, and performance-linked subsidies can also help improve
the sector viability - Sharing of best practices and knowledge transfer to improve ULB capabilities for robust implementation
and monitoring of PPP performance - Provide incentives for new private impact investment with Government as the outcome funder
- Innovative instruments of finance with success-fee based models to attract private capital
In the long term, devolving service delivery to the PPPs, developing sector regulation, and competitiveness among the ULBs can strengthen the local bodies’ performance to become a focal point on objective tariff settings and targeted subsidies.
Coming Soon!
