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Public-Private Partnerships (PPP) (= involvement of the Private Sector, particularly investment partners, in Water related projects and development activities) is a relatively new approach. UNDP/RBEC, in cooperation with BDP/EEG-LEF (Local Entrepreneurship facility), is engaged in pilot activities with first partners.
The issue of involving private investors (including Private and Develppment banks) in water-related projects in EECCAA countries is also discussed in the framework of the [[EAP Task Force]] (mandated to implement the <b>E</b>nvironmental <b>A</b>ction <b>P</b>rogramme in the framework of the "[[Environment for Europe]] initiative".
== Privatization & Involvement of private utilities ==
=== Issues ===
==== The "Privatization" and "Water as Public Good" Debate ====
On the <b>CSO advocacy front</b>, Public Services International has looked at evidence to support the case for [http://www.world-psi.org/TemplateEn.cfm?Section=Water&CONTENTID=10168&TEMPLATE=/ContentManagement/ContentDisplay.cfm public sector water undertakings] and [http://www.world-psi.org/TemplateEn.cfm?Section=Water&Template=/TaggedPage/TaggedPageDisplay.cfm&TPLID=32&ContentID=2404 campaigns worldwide to resist privatization of water services]. <br>
[http://www.foe.org/ Friends of the Earth], [http://www.wdm.org.uk World Development Movement], and [http://www.citizen.org Public Citizen] are just a few of many international [[CSO]]s making the case for water as a public good, and presenting successful efforts in developing countries. Some of these campaigns and experiences are catalogued on the [http://www.world-psi.org PSI site]. <br>
(<i>Source: Bharati Sadasivam, Policy Advisor, [[UNDP/BRSP]] - Civil Society Organizations Division</i>)
[[Transboundary Water Management as a Regional Public Good]]
See also article on [[Globalization and the Water Sector]]
; Controversy over the World Bank's [[PPIAF - Public-Private Infrastructure Advisory Facility]]
: Over 130 groups from 48 countries will today (15 May 2007) call on donor governments and agencies to abandon support for the Public-Private Infrastructure Advisory Facility ([[PPIAF - Public-Private Infrastructure Advisory Facility|PPIAF]]), a highly controversial element of the World Bank’s water privatization agenda.
: The call comes a week ahead of a crucial meeting of the 13 donors to [[PPIAF - Public-Private Infrastructure Advisory Facility|PPIAF]]. In an open letter, campaigners argue that aid spent on PPIAF’s water projects could and should be better spent. Earlier this year, the '''Norwegian government''' stated that it will not support [[PPIAF - Public-Private Infrastructure Advisory Facility|PPIAF]] in the future as it no longer believes it is increasing access to water for the poor.
: [http://www.wdm.org.uk/news/pulltheplugonprivatisation15052007.htm More...] (''Source: Abdullah Alshankiti [alshanki@yahoo.com], contribution on 'mena-water' e-list 16 May 2007'')
<br>
==== Specific Issues for the Region ====
* Low investment climate in EECCA region
* Question of [[Water Pricing]]:
** Currently too low [[Tariffs]], not covering even Maintainance & Operation (M&O);
**In South Africa, first 30 L / capita / day are free of charge --> idea of a progressive tariff structure.
* But WHO calculated that the social return in investment into the water sector is 13:1 (if externalities are internalized). (see also [[HDR 2006]])
* Need for small local banks (for investments in rural areas) -> through NGOs?
* Soviet Legacy: Over-sized systems, heavy metal, huge losses
* Subsidizing should go to output (connection), not the input (pipes)
* Needed Water Sector reform is not only about tariffs
* "Blending funds" (combining loans and grants); criteria needs to be adjusted that this works (Vanessa Celosse)
<br>
<b>Questions & Discussions</b>:
* Progressive [[Tariffs]]? -> In S. Africa for example, the first 30 L of Drinking Water per household are free of charge, ensuring safe access to (minimal) DW for everybody.
* <b>Partnerships</b> with private companies can be used to also change companies' understanding and attitude towards environmental issues (e.g. Coca Cola cooperation in [[Danube Regional Project]]: Public Awareness Building on the example of empty CC-bottles NOT to be thrown into the Danube...)
<br>
<br>
=== National and Local private sector involvement ===
"<i>Local private sector ("the other private sector") is already delivering services to between 20 to 50% of the poor in urban areas throughout the world. This reality cannot be ignored</i>" (source: [[Carlos Linares]]'s response to draft "[[Poverty Reduction and Water Management - Joint Agency Paper on Poverty Environment Partnership|Poverty Reduction and Water Management]]")
<br>
=== Resources ===
==== Reports and papers ====
[[Privatisation in Deep Water?]] - INEF Report 84/2006 on "Water Governance and Options for Development" (Annabelle Houdret & Miriam Shabafrouz)
Background papers and materials of the OECD Global Forum on Sustainable Development on "[http://www.oecd.org/document/22/0,2340,en_2649_34343_37456726_1_1_1_1,00.html#Background Public-Private Partnerships in Water Supply and Sanitation – Recent Trends and New Opportunities]" (Paris, 29-30 Nov 2006)
[[Policy Principles for Private Sector Participation in Sustainable Water Supply and Sanitation Services]]
[[Implementation Guidelines for Private-Sector Participation in Sustainable Urban Water Supply and Sanitation Services]]
[[Policy Principles and Implementation Guidelines for Private Sector Participation in Sustainable Water Supply and Sanitation Service|Fact Sheet on Policy Principles and Implementation Guidelines]]
;Reports by [[Farkhad Mukhtarov|Mukhtarov F.G.]], 2006.
[[Private Sector Participation in Water Supply And Sanitation of the Secondary Towns of Azerbaijan]]
[[Privatization of Social Policy of Water Supply in South Caucasus]]
<br>
==== UN's "Unleashing Entrepreneurship" Initiative ====
[[Unleashing Entrepreneurship – Making Business Work for the Poor]]
<br>
== Financing the Water Sector ==
''See also separate Article on [[Financing the Water Sector]]''
=== Involving Private (and Development) Banks ===
==== "Bankability" of projects ====
<i><b><small>What does [[Bankability]] mean?</small></b></i>
(Strategic Approach of [[KfW Development Bank]] in WSS Sector)
[[Case Studies of Bankable Water and Sewerage Utilities]]
<br>
==== UNDP Partnerships in the region ====
[[Workspace - UNDP Partnership with SNS Bank|UNDP Partnership with SNS Bank]]
<br>
==== Other UNDP PPP projects with banks ====
[[Banking the Unbanked in Fiji: The ANZ Bank and UNDP Partnership]]
[[UNDP/BFV-SG (Societe Generale) Partnership in Madagascar]]
<br>
=== CSR - Corporate Social Responsibility ===
'''''<small>[[CSR|What is CSR]]?</small>'''''
==== Concrete UNDP Partnerships and projects ====
; [[Coke|UNDP Partnership with Coke]]
<br>
==== The UN Global Compact ====
[[HOW TO GUIDE on Facilitating Global Compact Local Networks]] - If you would like to find out more about the Global Compact, in particular GC national chapters, role and interests of UNDP in facilitating GC local initiatives.
==== The [[CEO Water Mandate]] ====
See [[CEO Water Mandate]]
<br>
=== (Donor-) Initiatives, Events, Links ===
; [[UNEP-FI]]
: [[UNEP FI Expert Workshop on Water & Finance]] (Quarter One 2006, Davos, Switzerland) - Coordinated by [[UNEP FI]]’s Water & Finance Project to begin its work on a set of water-related risk management guidelines for financial institutions and policy makers. The guidelines are meant to serve as a basis to build capacities in the financial sector and at policy level into what and how water-related risks should be assessed, thus encouraging new sources of long-term sustainable investments in the sector.
: Workshop ("Founders Workshop") planned at the [[Stockholm World Water Week]] 2007 (see [[UNEP-FI]] for details)
For further information, please contact: [mailto:water@unepfi.org water@unepfi.org]
; [[Swiss Public-Private Partnerships for Water Supply and Sanitation]]
: Initiative launched by the Swiss State Secretariat for Economic Affairs (seco), the Swiss Agency for Development and Cooperation ([[SDC]]) and the re-insurer Swiss Re; focus on [[Public-Private Partnerships]]. The [[Swiss Public-Private Partnerships for Water Supply and Sanitation]] initiative has issued a set of hands-on instruments, among which the Policy Principles and Implementation Guidelines, which are designed to support decision-makers and practitioners engaging in water sector restructuring and Public-Private Partnerships PPP in achieving high governance standards throughout preparation, planning and operations. (For further information, also visit: http://www.partnershipsforwater.net)
; OECD Global Forum on Sustainable Development : [http://www.oecd.org/document/22/0,2340,en_2649_34343_37456726_1_1_1_1,00.html Public-Private Partnerships in Water Supply and Sanitation – Recent Trends and New Opportunities”], Paris, 29-30 Nov 2006
: Background papers, presentations, proceedings (to be published in due time), list ofparticipants, etc.
<br>
=== External (non-UNDP) examples of PPP ===
* <b>International Development Enterprises UK (IDE-UK)</b> has launched its new website in Nov 05: http://www.ide-uk.org. IDE-UK uses an enterprise-based strategy to tackle poverty among poor farmers in Africa and Asia.  Through developing and promoting simple, low-cost technology IDE-UK enables poor farmers to access and control water thereby increasing crop production and profit. IDE- UK establishes sustainable private-sector supply chains, working with small and medium enterprises, and specializes in market creation.  It also support farmers to access local and regional markets, and become active market participants.
* <b>[[Swiss Public-Private Partnerships for Water Supply and Sanitation|Public private partnerships (PPP) for water supply and sanitation]]</b> are demanding ventures. A set of hands-on instruments, policy principles and implementation guidelines could support decision-makers and practitioners with PPP processes. The website <b>http://www.partnershipsforwater.net</b> makes such instruments available for everybody with access to internet. The instruments are the result of a Swiss initiative that included extensive involvement of experts and stakeholders from the public and private sector as well as from civil society.
<br>
== Documents and References ==
[[Small-Scale Private Service Providers of Water Supply and Electricity]] <br>
[[Financing and Provision of Basic Infrastructure: Synthesis, Commentary and Policy Implications of Water and Electricity Service Case Studies]] (Commonwealth Foundation, Jul 2003) <br>
<br>
=== External References and Toolkits ===
The [[World bank]]'s '''[http://www.worldbank.org/html/fpd/wstoolkits/Kit1/frame.html Toolkits for Private Participation in Water and Sanitation]''' -
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[[Category:Article]]
[[Category:Public-private partnership]]
[[Category:Water Sector]]
== References ==
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