French Affermage Model - A New Model for Leasing Contract of Public Drinking Water Distribution Services
For more information, please visit the Water and Sanitation section of the PPPLRC.
For more information, please visit the Water and Sanitation section of the PPPLRC.
THIS DOCUMENT HAS BEEN PREPARED FOR THE PURPOSES OF THE PPP IN INFRASTRUCTURE RESOURCE CENTER FOR CONTRACTS, LAWS AND REGULATIONS. IT IS A CHECKLIST FOR GENERAL GUIDANCE PURPOSES ONLY AND SHOULD NOT BE USED AS A SUBSTITUTE FOR SPECIFIC LEGAL ADVICE FOR A PROJECT.
It is envisaged by the ministry that it would be used alongside an operation contract that the AUE would enter into with a private service provider to delegate functions to the provider rather than the AUE carrying out all of these functions itself.
There is no need to have any specific obligations in this contract regarding increases in connections as the provider takes the net revenues and so is incentivized naturally to increase connections. The provider is responsible for repair and maintenance but not major renewal and replacement and extension (which will be funded out of the rehabilitation fund that comes out of the licence fee). The provider implements/ oversees any major renewal or extension of the water facility and pump, as per the annual capital investment plan. While this contract is developed in a c
Unlike the simple bipartite affermage (model 1), the monitoring of the contract is by the AUE (and by the Commune for technical and financial aspects). The AUE is also responsible for making sure that the users pay for the water used. The tariff is revised with the approval of the Community Council. The various fees for rehabilitation and budget are paid into a joint account of the Commune and the AUE. There are very few service requirements set in the contract but there is a curious requirement to ensure the operation of the facilit
While this contract is developed in a civil law context using the affermage model, it could be easily adapted to a common law context where it was possible to assume full cost recovery.
Asset ownership
Parties |
The Community and the Service Provider |
Date |
N/A |
Duration |