Private Sector Participation in Water Sector From the Perspective of Service Provider

1. Private Sector Participation in Water Sector • From the Perspective of Service Provider

2. Jerusalem Water Undertaking Jerusalem Water Undertaking (JWU) is a non-profit, independent, civil organization established in 1966 under the Jordanian law No. 9. According to the stated law, JWU is empowered to provide drinking water for domestic and municipal use, develop new water resources, and to implement all water projects relevant to its mission. This responsibility entails developing all bye-laws, water tariff, and collection procedures to maintain financial balance. • JWU is supervised by a BOD comprising representatives from: • the three main municipalities in the area; Ramallah, Al-Bireh and Deir Dibwan, • Representative from Kufr Malik village, • and an assigned official from the Government. • Eng. Fawi Abed • Eng. Musa Hadid • Eng. Tawfiq Al Budiri • Dr. Hassan Musabeh • Dr.Issam Al-Taweel • Eng. Kamal Diebis • Mr. Hikmat Ghniemat BOD Chairman BOD Members JWU

3. JWU Service Area The Service Area • The Service Area extends: north to the Ramallah-Al Bireh Governorate border and south to BeitHanina village, west to the KufrNe’meh village and east to EinSamia village. • It includes 10 Municipalities including Ramallah & Al-Bireh twin cities, 40 Villages & 5 Refugee Camps. • The Municipalities of Betunia is supplied in bulk by JWU. • The number of JWU customers is about 65000. • The number of served population is about 350,000people. Municipality Village City with Bulk Supply COMPANY

4. What's The Potential Benefits of Private Sector Participation? • Generating Financial Resources • Innovative Ideas. • Improving Benchmarking. • Improving Service Efficiency and Accountability To Users.

5. Defining PPP in the context of water sector requires • determining the responsibility for; Assets Accounts Receivable Operation and Maintenance Capital Investment Management Defining The Legal Status of The Operator.

6. PPP Should Be Taken Into Consideration In • The Sector Reform Service Providers Participation Policy By Laws Strategies • Regulate the • utilities Providing Autonomy To Service Providers

7. Forms of private involvement and responsibilities in water and sanitation service.

8. PSP-JWU Experience Service Contract is the best option IQC Contracts Annual Value; 2.5-3 Million $ and Increasing

9. PSP-JWU-(BOT) Contract WWTP Project Total Value; 27 Million Euros

10. PSP-JWU-Potential Partnerships • Accumulated water loss = 40 MCM • Value of lost water =70 Million $ NRW Reduction

11. PSP-JWU-Potential Partnerships Service Contract to reduce NRW by 7%

12. Risk –Concerns Associated With PPP • Increased Operation Cost. • Service Prices Increased. • Donors Support Reduced-Stopped. • Customers (Groups) Perception of PPP. • Operators Capacity and Experience. • Losing ownerships • Performances Deterioration.

13. How Risks can be mitigated? • Government Support to PPPs Donors Support to PPPs • Selection of Operator: • Prequalification • Bid Evaluation Link between fees and achievements “Collection”