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Private Sector Participation in Water Sector From the Perspective of Service Provider. Jerusalem Water Undertaking. Jerusalem Water Undertaking (JWU) is a non-profit, independent, civil organization established in 1966 under the Jordanian law No. 9.

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Presentation Transcript
slide1

Private Sector Participation in Water Sector

  • From the Perspective of Service Provider
slide2

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

slide3

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

slide4

What's The Potential Benefits of Private Sector Participation?

  • Generating Financial Resources
  • Innovative Ideas.
  • Improving Benchmarking.
  • Improving Service Efficiency and Accountability To Users.
slide5

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.

slide6

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

slide8

PSP-JWU Experience

Service Contract is the best option

IQC Contracts

Annual Value;

2.5-3 Million $ and

Increasing

slide9

PSP-JWU-(BOT) Contract

WWTP

Project Total Value;

27 Million Euros

slide10

PSP-JWU-Potential Partnerships

  • Accumulated water loss = 40 MCM
  • Value of lost water =70 Million $

NRW Reduction

slide11

PSP-JWU-Potential Partnerships

Service Contract to reduce NRW by 7%

slide12

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.
slide13

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”