Many countries experience water insecurity which has a significantly negative impact, up to -6%, on annual GDP ratios. It is suggested that the public sector use alternative procurement methodologies to tap into private sector technical- and financial resources. In this way governments can continue playing an oversight role ensuring service delivery across income groups.
At the same time the public sector procures integrated financial- and asset management that contributes to the optimisation of value for money (VfM).
As governments continue seeking new finance mechanisms to remedy water services, the public sector is increasingly making use of the private sector to deliver water solutions to its utilities. PPPs, in essence are long term performance-based contracts.
Andre Kruger, CEO, PPP Training, South Africa