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Economic Solutions for Water Services in Urban and Rural Areas

This report by ENVECOLOGIC delves into applying economic logic to understand and propose solutions to environmental challenges in urban and rural water services. It discusses public-private partnerships and various options such as BOT, affermage, concession, and IOU. It analyzes partnership risks, including the investor-owned utility model, and highlights the increasing level of risk and irreversibility. The report also covers market size data and service contracts for water supply, distribution, sewage, sanitation, and other related services.

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Economic Solutions for Water Services in Urban and Rural Areas

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  1. ENVECOLOGIC Applying Economic Logic to Understand and Propose Solutions to Environmental Issues Public Private Partnership in urban & Rural Water Services September 13, 2013 www.envecologic.com +91 981-165-4229 agupta@envecologic.com This report has been prepared by ENVECOLOGIC meant for a specific purpose to facilitate proposal discussion with the client. It may not be appropriate for other purposes or audiences.

  2. Water Supply Demand Gap Envecologic Analysis, 2013

  3. PPP Options in India • Operation and Maintenance (O&M) • Build-Operate-Transfer (BOT) • Affermage • Concession • Investor-Owned Utility (IOU)

  4. Partnership Risks Investor Owned Utility Concessions Build, Operate, Own Approach Increasing level of risk and irreversability Leases or Affermage BOT Approach O & M Contracts Service Contracts

  5. Market Size ($ billion) Water Collection & Treatment Distribution & Supply 1750 32 29.5 0.8 Sewage & Sanitation Services Other Services 1300 45 12.16 3.5

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