Skip to ContentSkip to Navigation
About usNews and EventsNews articles

Optimising project finance solutions in the water sector. Suggestions for enhanced public private partnerships in developing countries

19 October 2009

PhD ceremony: X.C. Mandri Perrott, 14.45 uur, Academiegebouw, Broerstraat 5, Groningen

Thesis: Optimising project finance solutions in the water sector. Suggestions for enhanced public private partnerships in developing countries

Promotor(s): prof. H. Folmer

Faculty: Spatial Sciences


Public-private partnerships (PPP’s) have become an increasingly important mechanism in the provision of infrastructure and in particular for long term water and waste water services. This research is based on a detailed analysis of considerable international case history and sector experience in PPPs since the late 1980’s. Data is collected through an examination of the historical evolution of PPPs, the implications of PPPs against the national legal contexts in which they are set, and the contractual structures available for private sector involvement in the provision of water and wastewater services. The key findings and recommendations are based on a broad interpretation of sustainability which includes adequately addressing human, social, economic and environmental issues. The long term success of the PPP arrangement will in a very large part be determined by the way that these factors are dealt with contractually. Suggested improvements for clauses that can potentially influence contractual and scheme performance are provided. The importance of ensuring the continuing success of PPP schemes during their long term implementation and operation phases is recognized by providing specific recommendations on how to maintaining the economic and financial equilibrium. Also related to the long term nature of the PPP arrangements, suggestions are made on how flexibility can be introduced to the contract but at the same time do not open the door for full re-negotiation of basic terms.Other recommendations include effective ways to transfer risks of underground asset condition and other imponderables to the Developer in a systematic and sequential manner. This is taken one stage further by providing suggestions to improve public bidding and procurement procedures to deal with imperfect data. The research finishes by building on some of the contractual and structural limitations of the ‘traditional’ contract forms, proposing new contractual models, namely Output Based PPP agreements and long term arrangements incorporating the use of Trust structures to more effectively leverage financial resources.


Last modified:15 September 2017 3.38 p.m.

More news

  • 15 April 2019

    Fysische-geografisch veldwerk in Denekamp: The Lion Sleeps Tonight

    Jan Delvigne was al vroeg naar bed zoals altijd. Maar daar komt ie. Zachtjes gaat de deur naar de grote slaapzaal open. Een bril en baard komen de hoek om en bestuderen de stille slaapzaal. Ook daar zie ik voorpret: opgewonden fonkelen de ogen van Jan...

  • 09 April 2019

    Home is where the family lives

    Eight years ago, ‘Professor of Moving’ Clara Mulder followed her heart and moved from Amsterdam to Groningen. A typical case of scientific theory being put into practice. ‘I research subjects that affect everyone at some point in their life: relationships,...

  • 04 April 2019

    Disaster management principles widely ignored after the L'Aquila earthquake 2009

    The major earthquake in L’Aquila, Abruzzo, happened on 6 April 2009, leaving 309 people dead. Using the disaster risk reduction (DRR) paradigm and the United Nations principles for post-disaster interventions, University of Groningen researcher Angelo...