Two-thirds of water transactions approved by the Asian Development Bank's Private Sector Operations Department (PSOD) had to be canceled due to disputes between project promoters and authorities, limitations of the build-operate-transfer modality, and unresolved tariff issues. This highlights PSOD’s particular difficulties in identifying viable transactions in this sector despite numerous attempts to become more engaged. a special evaluation study concludes [1].

Opposition to change and fear of consequences (job losses, higher tariffs, loss of political control) and resistance by non-governmental organisations (NGOs) opposed to private sector entry have thwarted many attempts to introduce public-private partnerships (PPP), particularly in the water sector. The development of PPPs was also derailed in several countries, e.g., Indonesia, Nepal, and Sri Lanka, due to changes in (local) government commitment. Sustained political will and support of key stakeholders is therefore seen as the ultimate determinant of PPP success.

ADB's support for public-private partnerships (PPPs) in infrastructure development in general was rated “successful".

[1] Feig, H. and Finlayson, B. (2009). ADB assistance for public-private partnerships in infrastructure development : potential for more success : evaluation study. Manila, The Philippines, Asian Development Bank. ix, 65 p. : fig., tab. 15 ref. Download full report [PDF file]

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Tags: east asia & pacific, financing, governance, monitoring & evaluation, policies & legislation, sanitation, south asia, water supply