Jordan: Stakeholders examine private sector participation in water sector

Representatives from the Kingdom's water institutions, the private sector and the donor community convened last 11 June to consider public and private sector cooperation in water distribution.

According to the GTZ, the Kingdom's water sector offers a vast number of opportunities for private sector participation.

Pressured by increasing public deficits, governments across the world often struggle to cope with the costs of operating and managing their water networks, according to GTZ water experts.

Having worked on behalf of the German government in Jordan for more than 30 years, GTZ was recently involved in several PSP projects.

In order to facilitate the transition from project to commercial contract, a micro PSP model was introduced in the city of Madaba in 2006, where a local private company handled the billing and collection process, normally undertaken by the Water Authority of Jordan (WAJ).

A recent performance study conducted by the GTZ indicated that the city's billing system improved by 50 per cent since the PSP was initiated.

According to Rothernberg, ensuring subscribers pay for their services is essential to manage already-scarce resources.

 In addition to Madaba, other PSP water projects included the Al Samra Wastewater Management Plant, the Aqaba Water Company, the Amman Management Contract and the Northern Governorates Managing Consultant.

Future plans between WAJ, GTZ and private companies include replicating the Madaba experience in other governorates such as Balqa, as well as introducing new pumping stations, improving household connections and repairing networks.