Public Private Partnerships
What is PPP (Public-Private Partnerships)?
Whilst building a wealth of experience in water and wastewater services for people around the world over the last 150 years, Veolia Water has forged efficient partnerships models with municipalities. In particular, public-private partnerships (PPP), originally developed in France, are becoming increasingly successful in other countries, especially in major cities such as Berlin, Indianapolis and Shanghai.
PPP Principles
The facilities remain within the municipality ownership; the private operator is working as a subcontractor under the operation contract for a certain period of time.
This leads to a very high flexibility as every detail can be negotiated between the two parties during the contract redaction period to serve the best interest of both parties and so that the final agreement will be the most adapted to the local situation and to the municipality expectation.
In particular, the municipality sets the drinking water or rejected treated water standard level as well as the water price.
Advantages of the Public-Private Partnerships (PPP)
- Gives to municipalities access to specialized expertise and latest technologies
- Combine public and private financing for projects which requires high investment
- Benefit from the efficiency of the private sector through an optimized and tailored contract
- Retain control of strategic orientations and water policy
- Better customer service as private operator have a more client oriented culture
- In the event of a crisis, private operator is able to mobilize more personnel and experts to solve the problem
- Introduction of competition, with periodical bidding, that drives the performances toward excellence
Key Elements for Public-Private Partnerships success
Efficient water and wastewater services can be provided to the population through truly transparent partnerships agreement:
- A clear definition of the role and responsibility of each partner
- A tailored contract to fit local conditions and expectations
- Strong technical and financial commitments
