Public Private Partnerships in Water Sector: Partnerships or Privatisation?

Public-Private Partnerships (PPPs) are supposed to provide solutions to many of the existing problems related to infrastructure projects in both execution and operation. Currently, there are PPP projects in almost all the sectors including roads, ports, airports, water, sewerage, solid waste management and transport among others. It is, therefore, important to do a reality check on PPP projects and their efficacy in addressing the problems faced by the public sector water supply services and other infrastructure sectors as well.

The report looks at various aspects of PPPs, beginning from why PPPs have come to be regarded as the major approach for infrastructure development in the country, the circumstances that lead to the change in approach from direct privatisation to public-private partnerships, the current status of the PPP projects that are being executed in India, especially in the water sector, to the current estimates and projections of investment requirements for infrastructure development in India by governments and International Financial Institutions (IFIs).

Further, the report analyses the arguments given in favour of PPPs, the structural issues with PPPs and the larger governance issues associated with PPPs like transparency, people's participation, access to information and regulation. It also looks for evidence and experiences of PPP projects in various parts of the world. It draws lessons that need to be learnt and cautions that need to be taken on board when advocating PPPs in public services like water and sanitation.

The report also studies the impact of the PPPs on some of the social obligation issues like the responsibility of provision, service delivery and equity when the private sector is involved in delivery of public services like water.