Private Participation in Infrastructure: Analysis and a look in depth to the Sub-Saharan Africa Case in water distribution

Abstract

The purpose of this dissertation is to provide an overview of Public Participation in Infrastructure projects, with a final focus on projects undertaken in the Water and Sewerage sector in Sub-Saharan Africa. This dissertation is structured in five Chapters. Chapter 1 provides an overview of the history of PPI implementation, with a definition of the topic and an illustration of the advantages and disadvantages of involving private parties in public utilities management. Chapter 2 depicts the overall PPI situation in the world, based on data provided by the World Bank. It includes a description of the Principles issued by OECD to be applied to the PPI projects in the Water and Sewerage sector, of the PPI situation in different regions of the world, and of the main sectors in which PPI are applied. Chapter 3 presents the categories in which contracts can be divided, with a focus on the risk allocation process. The modules and the different types of contracts already functioning, the risk allocation process, the risk estimation techniques and the available mitigation measures are outlined. Chapter 4 introduces my personal analysis: I examine the history of PPI projects in Africa and the main features of the water sector, together with specific related risks. Chapter 5 is the core of the analysis I made: I start introducing the analysis of the available projects on the basis of data provided by the PPI Database of the World Bank, then I consider the private companies involved in PPI projects concerning Water and Sewerage in Sub-Saharan Africa and the funds that provide financing resources to private companies and public authorities, in order to begin or complete a PPI project in this field. Finally, I summarized the decisional processes undertaken by the different funds and the risk assessment processes, providing my proposal about the decisional process and risk evaluation criteria applicable to PPI projects concerning the water sector in Sub-Saharan Africa.