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Evaluation of water services public private partnership options for mid-sized cities in India (Inglês)

Successful mid-sized cities will be vital to India’s growth and prosperity in the coming decades. Indian cities are home to over 375 million people now, and their population is likely to double by 2035. Yet water supply in most mid-sized cities falls short of Government of India benchmarks for service, efficiency and cost recovery. In many of them water flows in the pipes for 2 hours a day or less, its quality is poor, and it is provided by utilities that cannot even cover their operating costs. Following a brief introduction to the three city case studies (section two), the report lays out the Indian water sector’s unique challenges, and using case examples to substantiate findings (section three). The challenges include day-to-day operational issues associated with running a utility, as well as policy and planning issues that affect the utility’s governance and investment planning to meet current and future demand. The results of a financial viability gap analysis, applied to Bhubaneswar and Coimbatore reveal the magnitude of improvements required, and the key drivers that affect the utilities’ financial performance (section four). These complex challenges make traditional PPP models, Management Contracts, Concessions and Leases, less amenable for use in mid-size Indian cities. As section five describes, this is because the traditional models are too risky for the operator or government or too limited in scope to create lasting improvements. The remaining sections focus on explaining the design and procurement strategy for the two innovative PPP models, the phased performance based contract and the Joint Venture (JV) Partnership (section six and seven). These models have the potential to deliver better results than the traditional PPPs and business as usual scenarios. This is because in addition to reforming dysfunctional utilities into focused and accountable organizations, they are able to respond to information uncertainty, include strong incentives, have clear sources of funding, and promote capital efficiency.


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    Ehrhardt,David, Gandhi,Riddhima Gaurang, Mugabi,Josses, Kingdom,William D.

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    Evaluation of water services public private partnership options for mid-sized cities in India

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    public-private partnership;urban water supply and sanitation;capital expenditure;business as usual scenario;average increase in tariff;responsibility for water supply;cost of finance;Water Services;cost of capital;financial viability;present value;concessional finance;bulk water supply;private sector operator;public private partnership;physical water losses;city water utility;water distribution system;hours of service;urban water sector;tariff increase;capital expenditure efficiency;Supply of Water;revenue collection system;water supply network;population growth rate;water service quality;reliance on outsourcing;delegation of responsibility;increase in capital;information management systems;water service provision;volume of water;net present value;cost recovery rate;water and sewage;operations and maintenance;rapid population growth;access to capital;improved living standard;international water operator;city case study;source of funding;firm or consortium;return on capital;quality of asset;responses to growth;maintenance and repair;rapid urban growth;urban population growth;increase tariff;rate of inflation;transfer of water;water utilities;investment need;illegal connection;capital work;water company;gap analysis;private finance;private investor;concessional loan;operational improvement;funding source;base case;water tax;tariff rate;chemical use;capital efficiency;water provider;city limits;capital program;



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