HOW PPP’s CAN HELP ACHIEVE SDG GOAL 6 IN

NIGERIA

Oluwatobi OluBori

IntroductionWater and sanitation financing, in particular,

are different from other infrastructure sectors!Many Governments are trying to figure out how

to strike a balance between roles of the public and private sector in water.

Direct Private Investments should not be the focus in the water sector.

Combining efficient private operation with public/ IDA financing is more appropriate PPP approach.

INSTITUTIONS IN THE NIGERIAN WATER SECTOR

THE FEDERAL MINISTRY OF WATER RESOURCES

STATE MINISTRY OF WATER RESOURCES

STATE URBAN WATER UTILITIES

SMALL TOWN WATER SUPPLY AGENCIES

RURAL WATER SUPPLY AGENCIES

WATER SERVICE REGULATORY BODIES

Access to Clean Water Improves…

Health: Safe water, clean hands, healthy bodies. Time lost to sickness is reduced and people can get back to the work of lifting themselves out of poverty.

Access to Clean Water Improves…

Education: Students miss class to go fetch water, or to care for sick parents or siblings. Schools cannot run programs if they cannot provide water to students.Lack of water = Lack of equality

For girls, the situation is especially troublesome. If schools do not have toilets , girls drop out once they reach puberty.

What’s The ValueTechnologies vary and so do costs. An US $11,000 water project in one village might cost US$27,000 in the next due to geology, local climate and the technology used. Catching rain or repairing a pump might be less expensive and just as valuable as digging a well.

PPP’s IN WATERPromoting Public-Private Partnerships in the Water Sector requires striking the right balance between capabilities that public and private entities bring to the table.

1. Public SectorAbility to provide commercial frameworks for infrastructure acquisition, financing, licensing – as well as creating the enabling environment to assist private firms operate and achieve full cost recovery.

2. Private SectorAbility to invest and produce innovative, affordable products and reliable, efficient services based on profit motives.

3. PartnershipEnabled through the Public Sectors Ability to regulate and facilitate operations contracts to private firms while not burdening them.

KEY CHALLENGES OF WATER PPP’s Access to Water is considered a

Fundamental Human right. People still reluctant to pay

Absence of proper Preparation of suitable PPP structure and viable Financial Models

Governments need be willing to share the associated risks

The Political economy Lack of access to affordable finance

RECOMMENDATIONS AND CONCLUSION As the Nigerian Water Sector continues to implement reforms

new prospects and opportunities shall continue to emerge for Private Sector participation.

o There has to be political will at State Level to reform and also to create the enabling environment for Private Sector participation

o Sector Regulation at State Level must be in place and enforcement evident

o State Governments must still be willing to invest in Infrastructure costs as and when required

o Development funding should be structured to encourage the Private sector access at affordable rates for investment in the water and sanitation sector. In the water Sector one solution does not fit all. Understand

your environment and structure the PPP to the unique environment.

THANK YOU WATER IS LIFE! SANITATION IS DIGNITY!!

LET’S BUILD PARTNERSHIPS!!!