Sharing PPP Best Practice for Wastewater

Sector: Water Partners: World Bank, IFC, MoE  GIF Activity: PPSA - Gaborone Wastewater Funding: $750,000 Reuse Project  

 

Challenge Access to an adequate and clean water supply is central to the well-being of human beings, for good health, productivity, and socio-economic development. However, many countries like Botswana face severe water scarcity issues, further exacerbated by climate change. Gaborone was chosen in 1965 as the nation’s capital because, at that time, it had adequate freshwater resources. Over the last few decades, climate change-induced drought and rising demand for freshwater depleted an already vulnerable resource. According to Gaborone’s Water Supply Master Plan, the city already faces a structural water deficit, which could soon exceed available resources by nearly twofold.

Solutions Wastewater reuse has been identified as an least-cost, reliable, new source of water. Through the IFC, the GIF is financing the preparation, structuring and procurement of a public-private partnership (PPP) project that will bring in private sector expertise and capital for the rehabilitation of the existing Glen Valley Wastewater Treatment Facility (90MLD capacity) and the development and construction of a new indirect wastewater reuse facility (up to 50MLD capacity).  In addition to the direct capital investments, the proposed Build-Operate-Transfer (BOT) concession contract will mandate the private sector with the responsibility for the operation and maintenance of both facilities over the 25-year term of the proposed contract in exchange for annual performance-linked payments.

Impact GIF’s support will lead to the development of a robust and bankable project structure with appropriate payment security mechanisms to attract international investors—marking the project as the first major PPP in Botswana. Its success will act as the benchmark for future PPP projects in the country and wastewater reuse projects in the region.  The project is expected to mobilize an estimated $140 million in private investment and provide access to water for up to 115,000 people, helping to improve the health and well-being of the community. By sharing GIF’s global expertise and best practices for implementing PPPs, as well as supporting public institutional capacity development in Botswana, the project’s success can be replicated in other sectors drawing more private investment into the country. 

 

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