Financial Sustainability of Water Treatment and Distribution: Using a Public Private Partnership Toolkit to Evaluate Project Costs

Author(s): Werner, R.; Surbeck, C.

With population growth and an increasing need for water supply and distribution, innovative ways to sustainably finance capital, operation, and maintenance costs of water projects must be found. A Public Private Partnership (PPP) between government and one or more private companies is an underused means of financing such projects. PPPs in the United States are common in the energy and solid waste industries. However, in the water sector, governments have been the entities solely responsible for funding water services. PPPs in water projects would enable a larger variety of capital investments and a balanced share of risk between government and private companies. Further, PPPs enable public services to be provided when there are public budget constraints.

The principal objective of this presentation is to show scenarios in which PPPs are beneficial for funding water projects. The analysis will include data from municipalities in the state of Mississippi, and results from a case study will be reported. The method used will be a toolkit software developed by The World Bank for use in road and highway projects. This existing toolkit, which has been applied to PPP projects worldwide, will be adapted for the water sector. For example, existing input parameters, such as average daily traffic and toll rate per vehicle, will be changed to water-related parameters, such as average daily water use and water use fees per household.

Overall, the goal of a PPP project in the water sector is a sustainable investment for both the government and private entities in terms of balance of risk and financial return on investment.
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Technical Sessions

1 Best Management Practices #1
2 Delta Water Assessment
3 Flood Assessment & Mgmt.
4 Wetlands
5 Watershed Mgmt. #1
6 Non-Point Source Assessment
7 Modeling
8 Water Quality
9 Best Mgt. Practices #2
10 Delta Water Conservation
11 Sedimentation
12 Storm Water
13 Watershed Mgt. #2
14 Public Water Systems
15 Surface Water Assessment & Evaluation

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