Skip to main content

Advertisement

Log in

Domestic Private Sector Participation in Small-Town Water Supply Services in Ghana: Reflections on Experience and Policy Implications

  • Published:
Public Organization Review Aims and scope Submit manuscript

Abstract

Public-private partnerships (PPPs) with domestic private operators were introduced in Ghana to improve water supply services, to ensure management and operational efficiencies, and to expand access. Based on two case studies carried out in the Ghanaian small-town water subsector, this paper explores the specific characteristic of the applied management model, takes stock of the experiences of projects implemented under the model, and provides useful lessons and policy actions for policy-makers and urban planners. The experience of domestic private sector’s involvement in small-towns’ water supply of Ghana raises the very issues that feature in the urban water PPP debate, including financing, cost coverage, water demand, regulatory and monitoring issues, stakeholder relationships, and risks and risk allocation. The current study contributes to filling the knowledge/research gap that exists in evidence-based reporting of the issues around domestic private sector participation in small-town water supply services.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

References

  • Adinyira, E. (2008). Selection of appropriate private operators for sustainable water service delivery in small towns and rural communities of Ghana. Published doctoral dissertation. Ghana: Kwame Nkrumah University of Science and Technology.

  • Advani, R. (2011). An innovative program to finance small piped water systems in Kenya. Washington DC: World Bank.

    Google Scholar 

  • Arndt, R. H. (2000). Getting a fair deal: Efficient risk allocation in the private provision of infrastructure. Doctoral dissertation. Australia: University of Melbourne.

    Google Scholar 

  • Boland, J.J., & Whittington, D. (2000). The political economy of water tariff design in developing countries: Increasing block tariffs versus uniform price with rebate: In A. Dinar (ed.), The political economy of water pricing reforms. World Bank.

  • BPDWS, Building Partnerships for Development in Water and Sanitation (2011). Emerging PPP trends in the water & sanitation sector, available at: www.bpd.org (accessed 12 Nov. 2011).

  • Castro, V. (2009). Improving water utility services through delegated management, Field Note No. 48881. World Bank.

  • Cowen, P.J.B., & Komives, K. (1998). Expanding water and sanitation services to low-income households. Public policy for the private sector No. 178, World Bank.

  • Cromwell, J. E., & Jordan, J. L. (1999). Linking full-cost recovery and sustainability. In F. Cotruvo et al. (Eds.), Providing safe drinking water in small systems: Technology, operations and economics. London: Lewis.

    Google Scholar 

  • CWSA, Community Water and Sanitation Agency (2005). Strategic investment plan (2005–2015). Ghana.

  • CWSA, Community Water and Sanitation Agency (2008). Strategic investment plan (2008–2015). Ghana.

  • Dinar, A. (2000). The political economy of water pricing reforms, World Bank.

  • Eguavoen, I., & Youkhana, E. (2008). Small towns face big challenge: The management of piped systems after the water sector reform. University of Bonn.

  • Ehrhardt, D., & Irwin, T. (2004). Avoiding customer and taxpayer bailouts in private infrastructure projects: Policy toward leverage, risk allocation, and bankruptcy. World Bank Policy Research Working Paper No. 3274. World Bank.

  • Evans, D.S. (2003). The public interest in private water. In Revisiting the public interest in private water, by Alex Tsybine, 4–5. Los Angeles, CA: Reason Public Policy Institute.

  • Fonseca, C., et al. (2010). Life-cycle costs approach: Glossary and cost components. Briefing Note 1, IRC International Water and Sanitation Centre, The Netherland.

  • Fuest, V., & Haffner, S. A. (2007). PPP – policies, practices and problems in Ghana’s urban water supply. Water Policy, 9, 169–192.

    Article  Google Scholar 

  • GII, Ghana Integrity Initiative (2011). Ghana’s national water supply integrity study. Report Ghana.

  • Haarmeyer, D., & Moody, A. (1998). Tapping the private sector: approaches to managing risk in water and sanitation. Journal of Project Finance, 4(2), 7–23.

    Google Scholar 

  • Harris, C., Hodges, J., Schur, M., & Shukla, P. (2003). Infrastructure projects: A review of canceled private projects. Public policy for the private sector note 252. World Bank.

  • Harris, D., Kooy, M., & Jalloh, G. (2012). The political economy of the urban water-pricing regime in Freetown, Sierra Leone. Working Paper 348, Overseas Development Institute, London.

  • Harvey, P. (2007). Cost determination of and sustainable financing for rural water services in sub- Saharan Africa. Water Policy, 9, 373–391.

    Article  Google Scholar 

  • Idelovitch, E., & Klas, R. (1995). Private sector participation in water supply and sanitation in Latin America. World Bank: Directions in Development.

    Book  Google Scholar 

  • International Finance Corporation (2011). The market for small-scale piped water systems in Kenya. Issue No. 1. World Bank.

  • Irwin, T., Klein, M., Perry, G. E., & Thobani, M. (1997). Dealing with public risk in private infrastructure. Viewpoints – World Bank Latin America and Caribbean Studies. Washington DC: World Bank.

    Google Scholar 

  • Kayaga, S. and Sansom, K. (2003) PPP in small towns’ water supply in Uganda, Paper presented at 29th WEDC International Conference: Towards the Millennium Development Goals, Abuja, Nigeria.

  • Ke, Y. J., Wang, S. Q., Chan, A. P. C., & Cheung, E. (2010). Risk allocation in Public-private partnership infrastructure projects: a comparative study. Journal of Infrastructure Systems, 16(4), 343–351.

    Article  Google Scholar 

  • Kleemeier, E. (2010). Private operators and rural water supplies: Can it work? World Bank.

  • Larbi, E. (2005). Public-private partnerships and the poor in water supply projects: The Ghanaian experience. Ghana: Well Fact Sheet.

    Google Scholar 

  • Lazarte, E., Boulenger, P., & Jain, N. (2011). Promoting Public-Private Partnership (PPPs) in Rwanda’s rural water supply: Lessons learnt. Paper presented at 6th Rural Water Supply Network Forum 2011 Uganda, Water and Sanitation Program, Uganda.

  • Li, B., Akintoye, A., Edwards, P. J., & Hardcastle, C. (2005). Critical success factors for PPP/PFI projects in the UK construction industry. Construction Management and Economics, 23, 459–471.

    Article  Google Scholar 

  • Lobina, E. (2005). Problems with private water concessions: a review of experiences and analysis of dynamics. International Journal of Water Resources Development, 21(1), 55–87.

    Article  Google Scholar 

  • Mehta, M., & Virjee, K. (2003). Financing small water and sanitation service providers: Exploring the microfinance option in Sub-Saharan Africa. Nairobi: WSP-Africa, World Bank.

    Google Scholar 

  • Moriarty, P., Patricot, G., Bastemeijer, T., Smet, J., & Van der Voorden, C. (2002). Between rural and urban: Towards sustainable management of water supply systems in small towns in Africa. The Netherlands: Working paper, IRC International Water and Sanitation Centre.

    Google Scholar 

  • Mugabi, J., & Marin, P. (2008). PPP in urban water: lessons from Yerevan, Armenia. Management, procurement and law. Issue MP4, 171–178.

    Google Scholar 

  • Mugabi, J., & Njiru, C. (2006). Managing water services in small towns: challenges and reform issues for low-income countries. Journal Urban Planning and Development, 132(4), 187–192.

    Article  Google Scholar 

  • Nickson, A. (1996). Urban water supply sector review. Papers in the Role of Government in Adjusting Economies. University of Birmingham.

  • Nyarko, K. B. (2004). Institutional challenges for small towns: A water supply delivery in Ghana. In T. R. Chaoka, D. Stephen, & E. M. Shemang (Eds.), Water resources of arid areas. Botswana: Garborone.

    Google Scholar 

  • Nyarko, K. B. (2007). Drinking water sector in Ghana: Drivers for performance. The Netherlands: Published Doctoral Dissertation, UNESCO-IHE Institute for Water Education.

    Google Scholar 

  • Payson, W. H., & Steckler, S. A. (1996). Developing public-private partnerships in infrastructure. In S. Hakim, P. Seiderstat, & G. W. Bowman (Eds.), Privatizing transportation systems (pp. 33–51). Westport: Praeger.

    Google Scholar 

  • Quiggin, J. (2005). Public-private partnerships: options for improved risk allocation. The Australian Economic Review, 38(4), 445–450.

    Article  Google Scholar 

  • Rivera, D. (1996). Private sector participation in the water supply and wastewater sector: Lessons from six developing countries. Directions in Development Series, Washington D.C.: World Bank.

  • Ryan, P., & Adank, M. (2010). Global best practise in the management of small town water supplies. TPP Working Document.

  • Savas, E. S. (2000). Privatization and public-private partnerships. New York: Chatham House.

    Google Scholar 

  • Valfrey, V. B., David, S. J., Bernard, C., & Chaponnière, E. (2006). Access through innovation: Expanding water service delivery through independent network providers; Considerations for practitioners and policymakers. London: Building Partnerships for Development in Water and Sanitation.

    Google Scholar 

  • van-Ess, R.K.D. (2009) Ghana: Role of private operator in small towns water supply. World Bank Water Week, 17–20 February, Community Water & Sanitation Agency, Ghana.

  • WaterAid. (2008a). Urban water sector assessment, report. Ghana: WaterAid.

    Google Scholar 

  • WaterAid. (2008b). Ghana – effective financing of local governments to provide water and sanitation services, Report. Ghana: WaterAid.

    Google Scholar 

  • Water and Sanitation Program (2010). Public-private partnerships for small piped water schemes—a review. World Bank.

  • World Bank (2002). Small towns, special challenge. International conference on water supply and sanitation for small towns and multi-village schemes, Addis Ababa, 11–15 June.

  • World Bank (2010a). Water supply and sanitation in Ghana: Turning finance into services for 2015 and beyond. African Ministers Council on Water (AMCOW) conference.

  • World Bank (2010b) Sustainable management of small of water supply systems in Africa. Practitioners’ Workshop Report, World Bank.

  • Youkhana, E. (2004). EU financed small towns water supply project (STWSP) in Ghana: The case study of Bekwai. GLOWA Volta W3, Bonn: Center for Development Institute.

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ernest Ameyaw Effah.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Ameyaw Effah, E., Chan, A.P.C. & Owusu-Manu, DG. Domestic Private Sector Participation in Small-Town Water Supply Services in Ghana: Reflections on Experience and Policy Implications. Public Organiz Rev 15, 175–192 (2015). https://doi.org/10.1007/s11115-013-0266-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11115-013-0266-3

Keywords

Navigation