Public Private Partnerships for Development

Public Private Partnerships for Development

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Inhaltsangabe:Abstract: Public-private partnerships are a tool that is increasingly used by development agencies to improve infrastructure in developing countries. This concept is also employed in piped water provision. The failure of some major projects suggests that there is considerable risk involved when the public and private sectors combine forces. The fact that piped water provision is a natural monopoly and therefore needs extensive regulation makes the cooperation between the public and private sector very difficult. Indeed, weak regulation is the probably the most important risk factor. Other risk factors include political instability, inadequate tariff and contract design, and lack of public support. These risk factors are analyzed using four case studies, two failed ones and two that are considered relatively successful. The analysis aims to find answers to the question whether the initiative of development agencies to heavily promote the concept of public-private partnerships in water and sanitation is justified and appropriate. Einleitung: Public-private partnerships werden im verstAcrkten MaAŸe von Institutionen fA¼r Entwicklungshilfe eingesetzt, um die Infrastruktur in EntwicklungslAcndern zu verbessern. Dieses Konzept wird unter anderem auch in der Wasserversorgung verwendet. Das Fehlschlagen von einigen wichtigen Projekten weist darauf hin, dass ein gewisses Risiko existiert, wenn der Apffentliche Sektor und die Privatwirtschaft zusammen arbeiten. Der Fakt, dass Wasserversorgung ein natA¼rliches Monopol ist und daher besonders starke Regulierung braucht, erschwert die Kooperation zwischen Apffentlichen Sektor und Privatwirtschaft. UngenA¼gende Regulierung ist mApglicherweise der wichtigste Risikofaktor. Andere Risikofaktoren sind politische InstabilitAct, ein schlecht gestaltetes GebA¼hrensystem, ein ungenauer Vertrag und fehlende UnterstA¼tzung der BevAplkerung und der Regierung. Diese Faktoren werden mit Hilfe von vier Fallbespielen analysiert, zwei gescheiterten und zwei, die als relativ erfolgreich betrachtet werden. Die Analyse soll helfen Antworten auf die Frage zu finden, ob die verstAcrkte FAprderung des Konzepts public-private partnerships in der Wasserversorgung von Seiten der Entwicklungshilfe gerechtfertigt und angebracht ist. Inhaltsverzeichnis:Table of Contents: 1.INTRODUCTION AND METHODOLOGY1 2.WATER SUPPLY SHORTAGE AND THE CONSEQUENCES FOR DEVELOPMENT4 3.THEORETICAL BACKGROUND TO WATER SUPPLY MANAGEMENT8 3.1WATER AS A PUBLIC AND ECONOMIC GOOD8 3.2WATER AS A NATURAL MONOPOLY9 3.2.1Economies of scale9 3.2.2Economies of scope10 3.3REGULATION11 3.3.1Reasons to regulate12 3.3.2Difficulties with regulation13 3.4THE PRIVATIZATION-NATIONALIZATION WHEEL14 4.THE CONCEPT 'PUBLIC-PRIVATE PARTNERSHIP'18 4.1DEFINITION18 4.2HISTORIC DEVELOPMENTS19 4.3PARTNERSHIP OPTIONS21 4.3.1Service contract21 4.3.2Management contract22 4.3.3Lease23 4.3.4Concession23 4.3.5Build-operate-transfer (BOT)24 4.3.6Divestiture24 4.4INCENTIVES AND RISKS25 4.4.1Advantages for the public sector25 4.4.2Advantages for the private sector27 4.4.3Risk associated with partnerships27 4.4.4Summary29 5.ANALYSIS OF PUBLIC-PRIVATE PARTNERSHIPS31 5.1CASE STUDY DESCRIPTIONS31 5.1.1Buenos Aires, Argentina31 5.1.2Tucuman Province, Argentina33 5.1.3La Paz-El Alto Metro, Bolivia34 5.1.4Manila, Philippines35 5.2OUTCOME INFLUENCING FACTORS37 5.2.1The bidding process and initial request37 5.2.2The partnership contract41 5.2.3The regulatory environment46 5.2.4The general political circumstances and corruption50 6.LESSONS FROM THE ANALYSIS54 7.CONCLUSION60 APPENDIX 1: IMPROVED WATER AND SANITATION TECHNOLOGIESIV APPENDIX 2: WEIGHTED RISK MATRIXV REFERENCESVIBased on the criteria that the bidding process should be as transparent as possible, the following bidding process is ... request including the form of partnership it would consider, taking into account what it wants to accomplish with the project. The government then addresses companies involved in water and sanitation provision and presents its request. ... This procedure was followed in all four cases.

Title:Public Private Partnerships for Development
Author: Tatjana Kühne - 2003-10-19

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