The Failure of Public Private Partnerships in Water Delivery Services

Water is an important public good which every individual in a community has the right to access. About 25 to 30 percent of the urban population in Latin America, Africa and Middle East lack access to water services. More than 48% of Dar es salaam population they lack access to water services. The government decides to enter into lease contract of 10 years with the Bi-water, a British private company to address water shortage in Dar es Salaam city but the contract was terminated after two years. The study aimed at exploring the factors that led to the failure of the institutional arrangement of PPP in water delivery services in Dar es Salaam City. The findings indicate that the main reasons for the contract termination were the failure to install the required number of meters, failure to follow procurement procedures as required by the procurement act, failure to pay the required level of equity contribution and failure to replace performance guarantee as required by Article 47.1 of lease contract.