The document discusses public-private partnerships (PPPs) for water infrastructure projects. It outlines the objectives of explaining the PPP model, reflecting on developments in the water sector, and explaining why PPPs are essential for the water sector. The presentation defines PPPs as long-term contractual partnerships between public and private stakeholders to develop or manage public assets or services, particularly infrastructure. It lists benefits like risk-sharing, innovation, efficiency, and access to private funds. The document also categorizes different types of PPP structures and explains the typical process from identifying potential projects to commissioning and operation.

1. Public Private Partnership (PPP)
for Global Water Business
Understanding and Investing
in Opportunities
Osama Al Attawneh
Director, Utilities
NESMA UNITED INDUSTRIES

2. The objectives of this presentation are:
1.Briefly explain the PPP model and its various functional
components
2.Reflect on the visionary developments and the need to
parallel the water sector.
3.Explain PPP as an essential model for the water sector.
4.Set an achievable Gateway processes with Summary
Presentation Objectives

3. What is PPP
A LONG TERM
CONTRACTUAL PARTNERSHIP
PUBLIC
STAKEHOLDERS
PRIVATE
STAKEHOLDERS
TO DEVELOP / MANAGE VARIOUS
PUBLIC ASSETS OR SERVICES
PARTICULARLY INFRASTRUCTURE
PPP is Not Privatization

4. Benefits of PPP
Public to Private
Partnership
Risk Shared Among
Partners
Creativity &
Innovation
Reduce
Public
Budget
Constraints
Efficiency &
Timeliness
Availability
of Private
Funds
Enhanced
Public
Control &
Monitoring
Reduce
Service
Costs Integration
Among
Stakeholders

5. A THRIVING ECONOMY Through
1. Rewarding Opportunities
2. Investing for the Long-term
3. Open for Business
4. Leveraging its Unique Position
5. Boosting the private sector
Wastewater and Desalination
As the government looks to increase its annual
production of water to meet growing demand, PPP
served as untraditional Procurment Methodology for “
Win–Win “ agreement satisfying the required
services as per an agreed key performance
indicators.
PPP is definitely Needed
Why to procure the PPP

6. PPP Structure Classification
PPP Infrastructure ( Greenfield New infrastructure ) :
BOT ( asset ownership transfer to Government upon construction completion ) ,
BOOT ( Owner transfer at contract End ) ,
DBFMO , DBOM ( Government pay ) ,
DBFM ( For Government to operate like school and Hospitals, ..etc).
PPP Infrastructure ( Brownfield Existing infrastructure ) :
ROT ( Rehabilitation , asset ownership with Government only) ,
Lease (Contractor lease existing structure from Government by fixed rate) .
NOTE : All Could be also through concession ( User Pay ).
PPP Services ( no capital investment ) :
Service contract ( Contractor will deploy his team for O&M ) ,
O&M Contract ( similar to service but also use equipment , tools , vehicles )
Management contract (uses Government manpower) ,
Lease ( Government lease the Asset at fixed rate )
Affermage contract (Risk Balance as O&M is compensated from the Revenue).

7. •Economy & technically sound feasible , taken
investment decision
Identify & Screen
•Viable as PPP so , taken Procurment Decision
Appraise & Prepare
•Process with Tender , Green light for launch
Structure & draft
•Sign the final agreement and contract , Award
decision
Procurment
•Build to standard and codes , commission &
acceptance
Develop & Commission
•Obtain the deliverables and benefits
Operation & Hand Back

8. PPP advantages
Efficient manpower utilization with focus on creative
and innovated concepts and ideas (AI) .
Risk transfer to Subject Matter Experts for control and
mitigation
Enhanced Cost management with access and
boosting the private sector finance.
Maximum utilization of assets , Enlarging the focus on
service availability by proper maintenance of the
infrastructure asset during its operating lifetime
Cash availability , additional fund ( for emerging
market ) & enhanced VFM
Focus to create incentives to reduce infrastructure full
life-cycle costs
PPP disadvantages
Complex and complicated Procurment process.
Gateway Process associated with high transaction
costs.
Private finance is more expensive.
Contract management subject to conflict ( Principle-
Agent problem )
Fiscal impact and management ( PPP is not subject to
budget reduction )
Contract uncertainties
Summary of PPP
Reference : ADB, EBRD, IDB, IsDB, and WBG. 2016. The APMG , Public-Private Partnership (PPP)
Certification Guide. Washington, DC: World Bank Group. License: Creative Commons Attribution CC BY 3.0
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