Private sector participation in the water sector – optimal allocation of risk
Mike Woolston, leader of the water practice at Frontier Economics, has co-authored an article on public private partnerships, which has been published by the Australian Water Association’s Water e-journal.
Governments throughout the world have been using public private partnerships (PPPs) over the past 20 years for reasons including responsiveness and efficiency. PPPs are not, however, the answer to all infrastructure or public service shortcomings. Successful PPPs require careful risk allocation and a strong enabling environment, which are a challenge to achieve.
The paper sets out the scope and range of PPP models, to aid in the selection of the most appropriate form of PPP and set out options for optimal risk allocation for enhanced private sector participation in these kinds of arrangements in the water sector.
Mike Woolston co-authored the paper with Stella Saris, ANZ Banking Group and Paul Smith of the Australian Water Association. Frontier Economics advises a range of public and private sector clients in the water sector.