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Recommendations of the Panel

 

11 proposals deal with "Promoting Private Sector Participation (PSP)"

 

# 5 - Governments should create an enabling environment for the participation of the private sector in the delivery of infrastructure services.

 

# 14 - Contracts for private sector participation should be standardised and promoted, enabling sub-sovereigns to employ private companies under incentive-driven contracts to raise efficiency and performance.

 

# 21 - A Revolving Fund should be created, using grants to finance the public preparation and structuring costs of complex projects such as private participation projects and other innovative structures.

 

# 22 - Sub-sovereign entities should consider the option of retaining assets in public ownership, with continuing public responsibility for investment finance, and with operations privately financed and managed.

 

# 38 - ODA technical cooperation should be used to help the preparation, structuring and implementation of private participation contracts, such as BOT and other concessions, management contracts, and leases, as a means of enhancing on-the-job capacity building.

 

# 40 - A study should be funded for the preparation of best practice and model clauses in the legal agreements for private participation, with particular reference to the water sector.

 

# 42 - The decentralised nature of water services is an opportunity for different mixes of public, private and self-help options, and for competition between them. The choice between them should be pragmatic, eschewing ideology.

 

# 74 - Governments should include SSWSPs in their national water supply strategies and service development plans, including incentives for them to improve their services.

 

# 75 - SSWSPs should be encouraged to improve their access to finance to increase their capacity to invest in the sector and reduce their cost of capital.

 

# 76 - Where public authorities are considering reforms of the water sector, or tenders of various kinds are being drawn up, private participation should be included as an option, to be decided on specific grounds of efficiency, cost and effectiveness. Procurement decisions should as a rule be made on the basis of open and transparent competition, typically through bidding.

 

# 77 - Donors and governments should be open to financing water projects by combining public funds with private financing in transparent and acceptable ways.

 

# 78 - ODA should be available to facilitate water projects managed by private operators under public control—for example output-based aid could be used to expand networks or fund revenue shortfalls on a diminishing basis under a concession. ODA could also be used to finance investment in assets owned by the public and operated by the private sector.

 

 

 

 

 
 

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Full report

English (236 KB) "Financing Water for All"

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