When the prolonged civil war in Mozambique ended in 1992, water supply infrastructure had deteriorated. In 1998, the Government adopted a comprehensive institutional reform for the development, delivery and regulation of urban water supply services in large cities. The new framework, known as the Delegated Management Framework (DMF), was inaugurated with the creation of two autonomous public bodies: an asset management agency (FIPAG) and an independent regulator (CRA).

There are at least 1,200 small water service providers in Kenya’s rural and peri-urban areas. These community- managed projects generally serve between 50 and 2,500 connections, including both household and shared connections. Many of these systems need to improve both the quality and quantity of water that they supply. Yet given the country’s developmental needs, public and donor funds are unable to meet the national demand for widespread and decentralized infrastructure investment.

KEY FINDINGS

Medium-sized cities are growing rapidly. It is crucial to explore the real challenges and limits of water supply in these cities and to define sustainable management solutions. Key challenges include:

• Difficulty mobilizing the private sector. The private sector is reluctant to engage in partnerships with communities in the management of water services in medium-sized cities for diverse reasons..

This report diagnoses the main governance and financing challenges to private sector participation in the water supply and wastewater sector of Tunisia, and provides ways forward to address these challenges. It has been developed as part of a water policy dialogue conducted by the OECD jointly with the Global Water Partnership-Mediterranean (GWP-Med) in the context of the project labelled by the Union for the Mediterranean (UfM) "Governance and Financing for the Mediterranean Water Sector", with the support of the FEMIP Trust Fund of the European Investment Bank.

In 2006, the Government of Jordan awarded a 25 year build-operate-transfer (BOT) contract to Samra Wastewater Treatment Plant Company (WWTP). It is the first BOT and public-private partnership in the country. The project directly addresses Jordan’s capacity to address its severe water deficit of about 450 cubic meters annually and thus, its growth capacity. When completed the As-Samra wastewater treatment plant will be the largest facility of its kind in the country.

Egypt’s first public-private partnership will have a major impact on the quality of basic services in a satellite city on the outskirts of Cairo. With IFC’s help, the government has awarded a land-mark concession for a wastewater treatment facility that will improve sani- tation services in New Cairo, as well as accommodate projected population growth. The project was awarded in June 2009.

Convenio modificatorio al contrato de concesion de los servicios publicos de agua potable y saneamiento de la ciudad de Guayaquil, que celebran la empresa municipal de agua potable y alcantarillado de Guayaquil EP, EMAPAG EP y la empresa Internactional Water Services (Guayaquil) Interagua C. Ltda. 

The 1990s saw a big drive to increase private sector participation in water services especially in Latin America. While there is currently less enthusiasm for the use of concessions and other public-private partnerships (PPPs), it is still instructive to inquire as

The concession of Bucharest’s water utility has brought its citizens higher-quality water services, at a lower cost, than they could have had under continued municipal provision. The credit for this goes to the leadership of the municipality and the municipal utility in the late 1990s, which saw that private finance and management were needed to reverse the cycle of poor performance.

The Bucharest concession was Romania’s first public-private partnership in the water and sanitation sector and one of the first such transactions in the sector in Europe. IFC’s role in structuring and implementing the transaction provided assurances to international operators and the municipality about this pioneering transaction. The transaction was completed in March 2000.