Public Private Partnerships need consideration

Metito has warned that global lessons in Public Private Partnerships (PPP's) in regards to water utilities must be considered if the Middle East and North Africa are to improve the water services.

"Water touches everybody's life and it is the responsibility of the governments to provide a framework that allows the water provider to perform and thereby improving the service to the communities. In the past, there has been lack of finance on the water infra structure and services have declined.  It is our belief that the private sector can work with the governments in improving services so that all communities have access to safe drinking water and sanitation.," said Rami Ghandour, executive director of Strategy and Investment, Metito.

The comments were made at the second annual PPP Middle East and North Africa summit in Amman, Jordan.

He added: "There is a global trend to promote water utility PPP's however the dynamics of PPP's alone do not guarantee success. International experience in Jakarta, Manila and Buenos Aires are examples where PPP's were poorly structured so there was limited success.  To some extent they were, producing investment into infrastructure, an increase in the number of connections, water quality improvements, customer service improvements and distribution pressures increases, among others.  However these three examples failed because the local communities were not involved, regulation was not independent and tariff increases were not properly implemented.

"By contrast, there have been water utility PPP projects in the region such as Metito's concessions at Dubai Investments Park, United Arab Emirates and Sharm el Sheikh, Egypt, where public and private organisations have partnered together to produce very successful water plants that benefit the social and economic fabric of their communities."

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