A Governance Approach to Urban Water Public-Private Partnerships: Case Studies and Lessons from Asia and the Pacific

This publication provides insights from case studies on PPP governance in the water and sanitation sector in Asia and the Pacific, highlighting three key areas for action: establishing a water governance framework, developing an enabling environment, and embedding transaction design.

Format: Paperback / softback
Length: 56 pages
Publication date: 30 June 2022
Publisher: Asian Development Bank

This comprehensive publication delves into valuable insights from case studies on the governance of public-private partnerships (PPPs) in the water and sanitation sector across Asia and the Pacific. Its primary objective is to provide valuable support to governments and private practitioners in addressing the critical challenge of ensuring universal access to water and sanitation in the rapidly expanding cities within the region. The report offers three key areas for action to achieve this goal. Firstly, governments can establish a robust water governance framework that is underpinned by competent public institutions, a sustainable revenue system, and transparent targeted subsidies. Secondly, they can foster an enabling environment by developing a sector-specific PPP strategy, conducting thorough project preparation, and establishing a sound fiscal framework. Thirdly, they can incorporate transaction design elements that prioritize bankability, balanced risk allocation, efficient and competitive procurement processes, and clear performance metrics tied to payment. By implementing these recommendations, governments and private stakeholders can work together to create sustainable and effective solutions for water and sanitation in the Asia and Pacific region.

Introduction:
The water and sanitation sector plays a pivotal role in ensuring the health and well-being of communities across the Asia and Pacific region. With the rapid urbanization and population growth, there is a growing demand for reliable and affordable water and sanitation services. However, meeting this demand has posed significant challenges, particularly in developing countries where resources are limited and infrastructure is inadequate.

Public-Private Partnerships (PPPs):
Public-private partnerships (PPPs) have emerged as a promising solution to address these challenges. PPPs involve the collaboration of public entities, such as governments, and private companies, to provide water and sanitation services. These partnerships bring together the expertise, resources, and financing of both parties, allowing for the development and implementation of innovative solutions that can meet the needs of communities effectively.

Case Studies:
This publication explores lessons from case studies on the governance of PPPs in the water and sanitation sector in Asia and the Pacific. The case studies cover a range of countries, including India, Indonesia, the Philippines, and Thailand, and focus on different aspects of PPP governance, such as project selection, contract management, and performance monitoring.

Key Findings:
One of the key findings of the case studies is that effective PPP governance requires a clear and transparent governance framework. This framework should include clear roles and responsibilities for both public and private partners, as well as mechanisms for dispute resolution and dispute prevention. It is also important to establish a robust risk management framework that identifies and mitigates potential risks that may impact the success of the PPP project.

Another key finding is that PPPs can be successful only if they are aligned with the broader national development agenda. Governments should prioritize PPPs that contribute to the achievement of social and economic development goals, such as poverty reduction, access to clean water and sanitation, and environmental sustainability.

Recommendations:
Based on the findings of the case studies, the publication makes several recommendations for improving PPP governance in the water and sanitation sector in Asia and the Pacific. These recommendations include:

• Establishing a clear and transparent governance framework that includes clear roles and responsibilities for both public and private partners.


• Developing a robust risk management framework that identifies and mitigates potential risks that may impact the success of the PPP project.


• Aligning PPPs with the broader national development agenda to ensure that they contribute to social and economic development goals.


• Promoting public-private partnerships that involve local communities and stakeholders to ensure that the benefits of PPP projects are shared equitably.


• Encouraging the use of innovative financing mechanisms, such as public-private partnerships, to fund PPP projects.


• Improving the capacity of public institutions to manage PPP projects and ensure that they are delivered effectively and efficiently.

Dimension: 280 x 216 (mm)
ISBN-13: 9789292694135