Guidelines out for PPP in LGU water sanitation

MANILA, Philippines - The Public-Private Partnership (PPP) Center and the World Bank-Water and Sanitation Program (WB-WSP) have launched guidelines for local government units (LGUs) and water districts (WD) in pursuing PPPs for water and sanitation projects.

The PPP Center said yesterday the so-called knowledge toolkits provide templates that would assist project proponents and implementing agencies in going through the PPP procurement process.

The toolkits include a business case analysis, model terms of reference for water source assessment, feasibility studies and transaction advisory services, pre-qualification requirements and instruction to bidders, contract management checklist, and generic preferred risk allocation matrix for a water supply project.

The development of the toolkits are aligned with the Memorandum of Understanding (MOU) signed between the PPP Center and WB-WSP in September enjoining the Local Water Utilities Authority (LWUA), National Water Resource Board (NWRB), Philippine Association of Water Districts (PAWD), and Department of Interior and Local Government (DILG) to harmonize their policies related to the public-private partnerships in the water sector.

“The water and sanitation sector is a major local development area where PPPs can prove to be viable. We gratefully acknowledge the support of the World Bank’s Water and Sanitation Program as well as the cooperation of the sector’s key institutions. This will surely facilitate the necessary build up of PPP capacities within WDs and s,” said PPP Center deputy executive director Eleazar E. Ricote.

The PPP Center is providing technical assistance to the LGU of Baggao, Cagayan in the competitive PPP bidding of its P84 million Water Supply Project.

Local water districts are government-owned and controlled corporations that operate and maintain water supply systems in provinces or municipalities. These companies are run by a five-man board through a general manager.

Many water districts in the country currently lack the technical expertise to lower non-revenue water and deliver adequate wastewater treatment services, making them fertile ground for investments by the private sector.