Local governments now allowed to privatize water, sanitation systems

LOCAL governments can now pursue public-private partnerships (PPPs) for water and sanitation projects.

The PPP Center and the World Bank recently launched the PPP knowledge toolkits for local governments, which provide standardized set of guidelines used to structure PPP projects and in going through the PPP procurement process for water and sanitation projects.

“The water and sanitation sector is a major local development area where PPPs can prove to be viable. We gratefully acknowledge the support of the World Bank’s Water and Sanitation Program, as well as the cooperation of the sector’s key institutions.

This will surely facilitate the necessary build up of PPP capacities within WDs [water districts] and local governments,” PPP Center Deputy Executive Director Eleazar E. Ricote said.

The toolkits are part of the PPP Center and World Bank-Water and Sanitation Program (WB-WSP).

The PPP toolkits presented include a guide to business case analysis; model terms of reference for water source assessment, feasibility studies and transaction advisory services; and prequalification requirements and instruction to bidders.

The toolkits also include contract management checklist; generic preferred risk-allocation matrix (GPRAM) for a water-supply project; and template bulk water agreement.

“This is consistent with the center’s holistic PPP Program approach covering project development and structuring along with PPP capacity building, as well as policy and process enhancements,” Ricote said.

The development of the toolkits and its launching are aligned with the memorandum of understanding jointly initiated by the PPP Center and WB-WSP in September, enjoining the Local Water Utilities Authority, National Water Resource Board, Philippine Association of Water Districts, and Department of the Interior and Local Government, to harmonize and reconcile their respective interventions to local governments and WDs in the pursuit of PPPs.

Currently, the PPP Center provides technical assistance to the local government of Baggao, Cagayan, in the competitive PPP bidding of its P84-million water-supply project.

At the national level, the PPP pipeline includes the P24.4-billion Bulacan Bulk Water Supply Project and the P18.72-billion New Centennial Water Source-Kaliwa Dam Project, that are both under procurement stage.

source:  Business Mirror