Toolkit: Structuring Private-Sector Participation (PSP) Contracts for Small Scale Water Projects

Precedent Contracts
Sample Clauses
Sample Contracts
Sample PPP Agreements


Toolkit: Structuring Private-Sector Participation (PSP) Contracts for Small Scale Water Projects by Victoria Rigby Delmon, Water and Sanitation Program (WSP), May 2014.


What is the Toolkit?

This toolkit is a resource designed to assist practitioners working on the next generation of PSP contracts for smaller water projects. Building on a review of PSP contracts developed in over 14 countries -- as well as recent survey data -- the toolkit provides actionable guidance on how best to structure contract and bidding documents.


Why use the Toolkit?

Water user associations, co-operatives, and local private operators may be better placed to provide services to rural, peri-urban, and small communities than the government. These local organizations are located closer and are potentially more accountable to users. Local operators may also be able to attract finance from commercial banks, as well as support from donor organizations.


What’s in the Toolkit?

  • General issues - project designers should consider before drafting a contract.
  • Key contractual provisions - of a PSP contract and examples of language drawn from real contracts
  • Annexes, including a comparison of key provisions in the contracts reviewed by WSP, as well as a sample Build-Own-Transfer/Concession agreement for constructing and operating a small scale scheme and sample term sheets for Design, Build and Operate (DBO) and Operation and Maintenance Contracts.


Summaries and copies of contracts reviewed in preparation of the toolkit can be found at Small Scale Water Projects: Rural and Peri-Urban. For further information on the sector, please visit Water and Sanitation PPPs.  

It is also available in Spanish - Guía Práctica: Estructuración de contratos de participación del sector privado para proyectos de agua en pequeña escala and French - Structurer les contrats de participation du secteur privé (PSP) aux petits projets d’approvisionnement en eau : Une boîte à outils


Related Information:

Risk Mitigation Mechanisms


Tracking Reference:

 Global_Final Toolkit for Structuring PSP Contracts for Small Scale Water Projects_EN.pdf

Last Updated : Wed,2017-07-26