The study also analyses the direction in which the sector is heading with respect to private sector participation. Since most PPPs are at early stages of operation, this study focuses only on learnings from PPP design and transaction. This study does not seek to assess the operating or financial performance of PPPs.
The study covered 26 successful as well as failed attempts in both industrial and domestic water supply in urban areas since 1990. It covered all water PPPs that were in the public domain, except those which had been abandoned at the concept stage. Information gathered for these projects was based on primary and secondary data.
Primary information on these projects, and the sector as a whole, was collected on the basis of consultations with government and private sector stakeholders, directly or indirectly involved in the development of the projects. Information was also collected from PPP experts from the sector and from the academia. Seventeen consultations were undertaken that involved one-on-one interviews and roundtable discussions. Secondary information on the projects was collected from publicly available documents and relevant project case studies. The study found that:
The emerging trends in the Indian urban water supply PPP revealed an:
The following factors contributed to the success or failure of PPP projects in the urban water supply sector
Analysis of Failed Projects
Analysis of Successful Projects
Emerging issues that had an impact on water sector PPPs
Way forward and possible interventions
The report ends by arguing that the recent trends indicate a growing interest in water PPPs, with more projects reaching the contracting stage, supported largely by increased availability of public funding for water PPPs. If the private sector is to play a significant role in addressing the investment and service backlogs in the sector, suitable interventions are necessary to scale up this momentum while ensuring projects that deliver the desired service outcomes on a sustainable basis.
A copy of the report can be accessed from this link