Session 3– Revisiting Public-Private Partnerships for water: focusing on results and balancing risks

The 12th Roundtable on Financing Water on “Strengthening the sustainability of water investments: alternative financing approaches and models,” was wo-convened by the OECD and the Islamic Development Bank (IsDB), in collaboration with the government of the Netherlands, the World Water Council and the World Bank.

Session 3 – Revisiting Public-Private Partnerships (PPPs) for water: focusing on results and balancing risks

There is potential for scaling up Public-Private Partnerships (PPPs) effectively in water, provided certain conditions are met. Looking beyond financial transactions, the ultimate goal should be leading the world to a greater water security. As private entities seek to maximise returns, adequate preparation, governance mechanisms and regulation are essential to mitigate potential pitfalls (to prevent adverse outcomes such as privatisation of benefits of water investments through dividend payouts). Recent work (including from the GCEW) supports the development of new modalities for PPPs in water, with the idea that the structure of finance (patient, mission-oriented finance) is as important as the quantity of finance. PPP models for water should be designed in such a way that risks and benefits are shared in a balanced way between public and private actors, and that PPPs achieve good outcomes, including reductions in water losses (non-revenue water - NRW), long-term network resilience as well as equitable and affordable access. Adequate regulatory frameworks are key to providing the right incentives for operational efficiency and investment in the long-term resilience of the system and create long-term value for the public.

Please visit the dedicated event webpage for more information: https://www.oecd.org/en/events/2025/0...