Mr Sering Jallow, director of the African
Development Bank (AfDB) said that Public finance is not enough to meet
Africa’s growing need for better water and sanitation, private funding
must also play its part, at a conference held in Dakar, Senegal. The
Infrastructure Consortium for Africa (ICA), G8 initiative was hosted by
by the African Development Bank (AfDB), co-organized the public-private
partnership (PPP) conference with the International Finance Corporation
(IFC) and other World Bank organizations.
With over 120 participants from across sub-Saharan Africa gathered to
discuss ways to increase the capacity of key policy makers in
accelerating access to safe and reliable water and sanitation services
through targeted and well-structured PPP projects. Ministers of water
and sanitation, senior government officials in charge of water and
sanitation; executives from water and sanitation utilities; financiers,
and international private operators from from Senegal, Uganda, Malawi,
Sudan, Mauretania, Gambia and Madagascar participated in this
conference.
The Senegalese Prime Minister, Abdoul Mbaye, in his speech hailed the
PPPs and the progress they have made in his country. He stated that
PPPs are not a panacea, but a powerful tool that guarantees better
services via shared investments.
A true PPP places emphasis on
‘partnership’, as guaranteeing better services requires considerable
effort and commitment from both the public and private sectors. Private
sector participation provides a promising solution to sustainable
management and financing of water services.
Mr Jallow reiterated the importance of PPPs, “A number of recent
studies put the annual water supply and sanitation investment, and
operation and maintenance requirements at between USD18 and USD 29
billion annually. According to the best estimates, we are mobilizing
only about USD 8 billion through tariffs, domestic taxes and government
subventions as well as transfers from development partners. As public
sector funds are insufficient to cover resource requirements, there is a
need for collaboration and strong involvement of the private sector as
implementers, financiers and providers of services.”
Africa is one of the world’s fastest growing economies and this
growth has invited private sector investment opportunities that include
water-related infrastructure. However, in most African countries, the
possibilities for attracting market-based private finance to support
water utility operations are limited.
The Infrastructure Consortium for Africa (ICA) proved to be an
opportunity to review the progress made in water and sanitation PPPs in
Africa and to learn from successful African and international models.
African Development Bank Group promotes economic and social
development in Africa. It is owned and funded by member governments, and
has a public-interest mandate to reduce poverty and promote sustainable
development.
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