Page 86 - Urban water supply handbook

IMPROVING URBAN WATER INFRASTRUCTURE THROUGH PUBLIC-PRIVATE PARTNERSHIPS

TABLE 3.1 The Public-Private Partnership Industry

Typical Responsibility
term, for capital
Type Scope years improvements Fee structure
Concession Full service and 20–30 Private company Revenue from
system responsibility handles debt billing and
including billing refinance, collection
and collection facility renewal,
concession fee
Lease/delegated Full service and 10–20 Moderate Fixed fee,
services system investment by ASA service
responsibility private company, ROE
facility
renewal fund
Design, build, Design, build, operate 15–25 Municipality Fixed price for
operate and maintain provides capital plant, fixed fee
new facility for new facility for operations
Contract Full service O&M, 5–15 Moderate Fixed fee, ASA
operations CIP management investment by service ROE
with capital private firm,
improvement facility
renewal fund
Contract Full service O&M, 3–5 Municipality Fixed fee, ASA
operations plant management service
Operations Particular service, 1 Municipality Fixed fee
assistant e.g., plant startup
Asset transfer Facility ownership 15–20 Private firm Base take or
transfer; wholesale pay, variable
service agreement component
with municipality
BOOT Build, own, operate 15–30 Private firm Wholesale
new facility service
agreement
BOOT Build, own, operate, 15–30 Private firm Wholesale
transfer at service
specified date agreement
Purchase, Facility returned after 5–10 Private firm Base take or
renovate, operate plant upgrade and pay, variable
transfer operations period component
Joint ownership “Mixed company” 30 Private and public Percentage of
or water authority additional
with private revenue
service provider
ASA additional services agreement; ROE return on equity.
Source: Bob Siemak, Presentation at “Water/Wastewater” session at the Washington Institute
Foundation conference, Bellevue, Wash., June 22, 1999.

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