Risk factors and mitigation measures in public-private water sector partnerships: lessons from the Asutifi North District, Ghana

Abstract

Public-private partnerships (PPPs) are promoted as a practical option for developing countries to meet their water sector infrastructure gaps. Despite their appeal, PPP projects have been described as complex and challenging, and the water sector PPPs are particularly associated with high failure rates. Risk analysis and evaluations have been identified as critical to the success of PPPs. In this paper, we examine an on-going PPP arrangement for piped water supply in the Asutifi North District of Ghana under a Build, Operate, and Transfer arrangement. Safe Water Network will provide the supply systems and transfer ownership to the District Authority at the end of the contract. We reviewed key project documents to ascertain the measures that would minimize the likelihood of risk occurring during the project cycle. Of 11 risk factors, 7 were anticipated in the project documents. We recommend that project documents be reviewed and amended to address the unanticipated risks. Highlights Public-private partnership (PPP) projects could enable developing countries to bridge water supply gaps.; Risk analysis could enhance PPP projects for water supply.; The PPP water supply project documents anticipated major risks and proposed mitigation strategies to minimize their occurrence.; Most of the project risks could occur during the service delivery phase.; Gaps in the proposed risk mitigation measures need to be addressed.;

Keywords

• ghana
• mitigation
• public-private partnership
• risk
• sustainable development goals
• water supply