1. Private Sector Participation in Water Sector From the Perspective of Service Provider

2. Jerusalem Water Undertaking 2 JWU Jerusalem Water Undertaking (JWU) is a non- profit, independent, civil organization established in 1966 under the Jordanian law No. 9. According to the stated law, JWU is empowered to provide drinking water for domestic and municipal use, develop new water resources, and to implement all water projects relevant to its mission. This responsibility entails developing all bye- laws, water tariff, and collection procedures to maintain financial balance. Jerusalem Water Undertaking (JWU) is a non- profit, independent, civil organization established in 1966 under the Jordanian law No. 9. According to the stated law, JWU is empowered to provide drinking water for domestic and municipal use, develop new water resources, and to implement all water projects relevant to its mission. This responsibility entails developing all bye- laws, water tariff, and collection procedures to maintain financial balance. JWU is supervised by a BOD comprising representatives from: the three main municipalities in the area; Ramallah, Al-Bireh and Deir Dibwan, Representative from Kufr Malik village, and an assigned official from the Government. JWU is supervised by a BOD comprising representatives from: the three main municipalities in the area; Ramallah, Al-Bireh and Deir Dibwan, Representative from Kufr Malik village, and an assigned official from the Government. Eng. Fawi Abed 1.Eng. Musa Hadid 2.Eng. Tawfiq Al Budiri 3.Dr. Hassan Musabeh 4.Dr.Issam Al-Taweel 5.Eng. Kamal Diebis 6.Mr. Hikmat Ghniemat BOD Members BOD Chairman

3. The Service Area JWU Service Area COMPANY 3  The Service Area extends: north to the Ramallah-Al Bireh Governorate border and south to Beit Hanina village, west to the Kufr Ne’meh village and east to Ein Samia village.  It includes 10 Municipalities including Ramallah & Al-Bireh twin cities, 40 Villages & 5 Refugee Camps.  The Municipalities of Betunia is supplied in bulk by JWU.  The number of JWU customers is about 65000.  The number of served population is about 350,000 people. Municipality Village City with Bulk Supply

4. What's The Potential Benefits of Private Sector Participation?  Generating Financial Resources  Innovative Ideas.  Improving Benchmarking.  Improving Service Efficiency and Accountability To Users.

5. Capital Investment Assets Management Operation and Maintenance Accounts Receivable Defining The Legal Status of The Operator. Defining PPP in the context of water sector requires determining the responsibility for; Defining PPP in the context of water sector requires determining the responsibility for;

6. Policy Regulate the utilities StrategiesBy Laws Providing Autonomy To Service Providers Service Providers Participation PPP Should Be Taken Into Consideration In The Sector Reform PPP Should Be Taken Into Consideration In The Sector Reform

7. Option Setting performanc e indicators Asset ownership Capital investment Design and build Operation and maintenance Commercial risk Oversight of performanc e &fees Duration (Years) Service contractPublic Shared P/PPublic 1-2 Management contractPublic PrivatePublic 3-5 Lease ContractPublic Private Shared P/PPublic10-12 Build-Operate – TransferPublic Private bulk servicesPrivate Public20-30 Concession contractPublic Private Public25-30 Joint VenturePublic Shared P/P Shared P/P Shared P/P Shared P/P Shared P/PPublicIndefinite DivestiturePublicPrivate PublicIndefinite Forms of private involvement and responsibilities in water and sanitation service.

8. IQC Contracts Service Contract is the best option PSP-JWU Experience Annual Value; 2.5-3 Million $ and Increasing Maintain independence and ownerships Achieve Goals within time. Improve benchmarking Repair- Maintenance. Vehicles 'Maintenance. Other types of IQC Contacts.

9. PSP-JWU-(BOT) Contract WWTP Project Total Value; 27 Million Euros Project Total Value; 27 Million Euros We don't have the Know How We don't have the Capacity Donors Support the project

10. NRW Reduction PSP-JWU-Potential Partnerships Annual Water Loss around 4.2 Million Cubic Meters Per day loss around 11,000 Cm3 Annual Financial Loss around 7.5 Million $ We cannot substantially reduce NRW without external support. We don’t have the capacity to substantially reduce NRW Accumulated water loss = 40 MCM Value of lost water =70 Million $

11. 1.1 Million cubic meters of water quantities became available per year. 3,000 Cubic meters additional quantities per day Supplied water increased by 7% Annual sales increased by 2 Million USD PSP-JWU-Potential Partnerships Service Contract to reduce NRW by 7% Private operator have the capacity and the know how to reduce NRW. Opportunity to gain contract with total value estimated at 25-30 Million$

12. Risk –Concerns Associated With PPP  Increased Operation Cost.  Service Prices Increased.  Donors Support Reduced-Stopped.  Customers (Groups) Perception of PPP.  Operators Capacity and Experience.  Losing ownerships  Performances Deterioration.

13. How Risks can be mitigated? Selection of Operator: Prequalification Bid Evaluation Selection of Operator: Prequalification Bid Evaluation Development of Regulation for PPPs Enabling environment By-Laws and enforcement to compact illegal consumption and Consumption and enhance collection. Water Tariff Government Support to PPPs Donors Support to PPPs Sponsorships, Projects Support Advocate for Service contracts and BOT. Link between fees and achievements “Collection” Link between fees and achievements “Collection”