Public–private delivery of urban water services in Africa

Abstract

The period between 1990 and 1997 saw a record growth in the number of public-private partnerships (PPPs) for provision of water/sewerage services in developing countries. Nonetheless, PPPs have not fared well in sub-Saharan Africa, which accounted for 80% of the PPP contracts that attracted disputes or were cancelled between 1990 and 2004. Since the 1980s, management contracts between international water operators and utilities in Africa have been promoted by the World Bank and other multi-international agencies as a model that could boost management capacity in utilities of developing countries and lead to improved effectiveness and efficiency. The present study draws upon empirical data from Kampala, Uganda and uses it as a case study to show that, on the whole, these expectations were not fulfilled. It is demonstrated that the performance improvements of the National Water and Sewerage Corporation, the utility in Kampala, were not as high as expected when it was twice managed by different international operators. On the other hand, the corporation has made impressive performance improvements under the current public management model. Conclusions have been drawn from the case study on what are the drivers of performance improvement in the water utilities of developing countries.

Assessing determinants of PPP project performance

“…Most of them have a component to attract private sector participation. The correlation between application and performance of PPP projects across infrastructure sectors including water has been a mixed bag (Parker and Kirkpatrick, 2005) (Kayaga, 2008). Various research initiatives have been exploring the reasons of such performance across infrastructure sectors and geographies.…”

“…However, provision of such infrastructure in most cities to acceptable standards is a major area of concern. (Guasch et al, 2008) (Servenand Calderon 2004b, 2008. While many reasons exist for such sub optimal provision of services, low spending on infrastructure and inordinate delays in implementation/ operations & maintenance of ongoing projects has affected the performance (Ahluwalia, 2011).…”

Progress of water service providers in meeting millennium development goals in Kenya

“…These options included divestiture, in which the government relinquishes all the ownership and operation, to commercialization, where the government retains ownership of water rights and infrastructure but leases out some services to private companies (Kayaga, 2008;Nyangena, 2008).…”

“…In Kenya, several studies have adressed various aspects of the history and nature of water privatization (K'akumu, 2004K'akumu & Appida, 2006;Kayaga, 2008;Njiru, 2003;Nyangena, 2008;Okeyo, 2011). However, no study has analysed the efficiencies of WSPs.…”

Editorial: PFI/PPP: past, present and future

“…5 PPP models for involvement of the private sector in water supply and sanitation may take the form of management contracts, leases, build-own-operateand-transfer (BOOT) arrangements or outright divestiture of water supply companies. Private sector participation in water supply in sub-Saharan Africa has been advocated on the basis that it brings with it a number of distinct but complementary factors including increased efficiency in investment, management and operations, access to private finance, reduction of government expenditure and indebtedness, opportunities for capital market development and potential to stimulate foreign direct investment.…”