A Comparative Evaluation of Public-Private and Public-Public Partnerships for Urban Water Services in ACP Countries

This study evaluates the comparative advantages of PPPs and PuPs in urban water services.
Based on literature analysis and case studies, past performance of PPPs and PuPs is reviewed
against several criteria. Lessons are then identified regarding the barriers and enablers which
determine the success of partnerships, and the kind of support donors could usefully
provide. The study concludes that while the main determinant of performance is not public
or private management but policy, institutions, finance and regulation, there are notable
differences between what PPPs and PuPs can offer. In the right circumstances the private
sector can improve in efficiency and management, but at high costs. PuPs generally have
lower costs and greater focus on capacity building and equity, and have the potential to
support more holistic approaches to urban services and the water cycle. Partnerships with
local actors can also improve services by allowing more flexible approaches to service
provision to meet the needs of different households. The involvement of civil society and
community groups in particular often helps to improve services for poor households. A key
conclusion is that governments should have a choice of different partnership options and
the ability to end failing partnerships.