Conceptual framework for public-private partnerships model for water services infrastructure assets: case studies from municipalities in the Limpopo and Gauteng provinces

Abstract

This paper presents a framework for public-private partnerships PPP) in local government water services infrastructure. Water services infrastructure assets are key to the provision of basic services. Data were collected from various stakeholders, i.e. water boards, and private sector institutions. The framework for Public Private Partnerships (PPP) models comprises three categories, viz., state model, hybrid model and private sector model. Each of these models depends, amongst others, on the funding structure. Case studies for PPP models were drawn from the Limpopo and Gauteng provinces in South Africa. The outcome of this research confirmed that there are successful PPP models for local government water services infrastructure in South Africa. The success of such models depends to a greater extent on a number of variables such as: a) Technical/project risk, b) Financial risk, c) Contractual risk, d) Skills and knowledge transfer, e) Roles and responsibilities of state institutions, f) Affordability and revenue flows, g) Value for money; h) Ownership of infrastructure; i) Socio-political concerns/issues, j) Funds following functions, k) Technology and innovation, and l) Open and transparent procurement process.