WIT Press

A Model For Private Sector Participation (PSP) For The Water And Sanitation Sector In India


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WIT Press


A. R. Perks, P. Eng, S. Devnani & K. A. Morrison


Private Sector Participation is increasingly recognized as an important mechanism for improving the operating efficiency of municipal infrastructure. However, attempts to privatize municipal water and waste water facilities may be frustrated by a lack of sufficient competition among private operators, resistance from public sector owners and staff to loss of control, and inadequate technical, financial and administrative capacity in the owner's organization. This paper outlines a Private Sector Participation (PSP) model established by Anderson Operations Inc. (AOI) to improve operating efficiency, implement best practices and then transfer O&M responsibility back to the owner, along with a trained and experienced staff complement. Anderson Operations Inc. is an affiliate of R. V. Anderson Associates Limited (RVA), a major Canadian consulting firm founded in 1948. Initial experience indicates the model could be effective for many small and medium sized municipalities who wish to improve operational performance and efficiency through Private Sector Participation. Keywords: water, operations & maintenance, private sector, capacity building, partnership. 1 Introduction Basic water and wastewater services are essential for the social and economic welfare of all human settlements; and therefore efficient investment in, and operation of, these services is a key aspect of Sustainable Development. Yet, despite major efforts by financing and donor agencies, the number of people without access to water and wastewater service continues to rise. Even in areas with functioning water and wastewater facilities, poor system performance and inadequate O&M often result in a downward spiral of declining


water, operations & maintenance, private sector, capacity building, partnership.