Table of contents
1. Project purpose
The purpose of the project is to develop a policy framework for an international standard on PPPs for water supply and sanitation. The project aims to improve the availability, quality, acceptability, accessibility, affordability of water and wastewater services while respecting the principles of equality and non-discrimination, accountability, sustainability, public participation, access to information and transparency.
The target and main beneficiaries of the project are national and local governments.
2. Project scope
Recognizing that PPPs are an available tool to provide water supply and sanitation services, the UNECE organized jointly with the World Bank, the European Bank for Reconstruction and Development and the Islamic Development Bank, an International Conference on Water and Sanitation PPPs on 21-22 October 2014. The conference recommended that the UNECE International PPP Centre of Excellence should focus on the identification of international PPP best practices and the development of relevant guidance tools that could contribute to the achievement of the SDG on water with a focus on safe, efficient and affordable water and sanitation services.
This project aims to provide guidance in the development and implementation of PPPs for water supply and sanitation. This project will assess different models of PPPs in water and sanitation, using the Project Team members’ experience in markets where PPPs are effectively used to deliver water services, to develop a standard on PPPs for Water Supply and Sanitation. It is foreseen that the project will provide guidance on at least four categories related to the use of PPPs in the Water and Sanitation sector:
• Overall policy framework for water governance – what is specific to water PPPs?
• Economic context and subsequent choice of the type (models) of PPPs and their relation to risk allocation;
• The life of the PPP contracts from initial stages through completion;
• Transparent procurement and management processes;
• The role and control mechanisms including the performance indicators; and
• The payment schemes.
The project will examine PPPs from early service levels analysis, financial analysis, scenario development, tendering, awarding, the relationship between the authorities and the private entity, the evolution if needs be, and the contract termination. The aim of the standard is to clarify a number of aspects in a PPP (inter alia, the goals, roles of the parties, impacts on risk allocation and financing, and the necessary control mechanisms depending on the contract type) depending on the contract type: management contract, lease, affermage, concession, or divestiture.
3. Project deliverables
The project deliverables are:
• A review of the existing PPPs in water supply and sanitation: this review will identify their goals, set-up, and their impacts along the four suggested categories;
• A Standard on PPPs in water supply and sanitation: The Standard will set out best practice recommendations to policy makers in the development, implementation and control of water-related PPP programmes and projects.
4. Geographical focus
The focus is global.
5. Project team membership and required functional expertise
The membership is open to experts with expertise in the area of water related PPP projects, especially in low and middle income countries. The team may also require the involvement of experts involved in water PPPs in mature markets.
6. Project leadership
7. Resource requirements
Participants in the project shall provide resources for their own participation. The existence and functioning of the project shall not require any additional means from the UNECE secretariat.
Estimated Completion Date
Developing the initial draft
2015 December-2016 January