Public-private partnerships as investment models for water infrastructure in South Africa

Abstract

Developing countries, such as South Africa, have no choice but to look at innovative and/or alternative approaches, such as public–private partnerships (PPP) as investment models, to ensure that they eliminate their water infrastructure backlogs. The primary objectives for the research were: (i) to develop a PPP framework; (ii) the identification of PPP investment models for water infrastructure; and (iii) to determine key categories, criteria, and characteristics for cost-effective PPP investment models to ensure the sustainability of the water infrastructure value chain in South Africa. The framework for PPPs identified five broad categories of investment models for water infrastructure value chain in South Africa. The research results highlight the aspects of PPP in addressing i) water infrastructure needs; ii) implementation strategy for water infrastructure projects; iii) investment policies; and iv) for the eradication of water infrastructure backlogs. The total investment estimates in the past 20-year period (1998/1999 – 2019/20) have been ca. US$48.36 billion with the public sector contributed ca. US$44.32 billion (91.64%) and the private sector only US$4.04 billion (8.36%). Furthermore, the analysis exemplified that ca. US$2.75 billion/annum is available based on the current financial arrangements leaving a finance gap of US$2.83 billion/annum in the water infrastructure value chain.