Practical Considerations on the Implementation of Public–Private Partnership in Water Utilities in Emerging Markets of Central Asia

The purpose of the chapter is to develop the pragmatic logical framework for safeguarding successful Public–Private Partnership (PPP) implementations in water supply in emerging markets. The case analysis related to the research question of how efficacy of PPP implementations could be improved revealed considerable shortfalls within the current modus operandi. The research was limited to urban water utilities of Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan with implications most relevant for emerging markets conditions. The proposed logical framework could improve efficacy and sustainability of PPP undertakings in water supply in developing countries. The framework is centred on the simple question: ‘What would constitute a meaningful quid pro quo within the envisioned PPP arrangement to eligible counterparts?’ The framework would necessitate properly answering many complex and uncomfortable questions of PPP arrangements, especially in terms of performance management, public accountability and underlying benefits to the parties. PPP in water utilities is a popular notion amongst governments and the international financial institutions (IFIs). PPP is commonly considered to be a tool for providing an optimal solution to chronic problems of water utilities in terms of underperformance and underinvestment. In-spite of massive efforts of modernization and institutional upgrade of the water utilities in Central Asia, success rate with PPP modalities is still rather low.