Towards improved partnerships in the water sector in the Middle East : A case study of Jordan

Abstract

This dissertation focuses on the use of public-private partnerships (PPPs) in the water sector in Jordan, a Middle East pioneer with respect to experimenting with different approaches to delivering water services in both cities and rural areas. Jordan's efforts to decentralize water services began in the late 1990s at the prodding of the World Bank. A management contract was awarded to a private consortium to operate and maintain Amman's water system. One major stumbling block has been finding the right organizational and legal arrangements. In this inquiry, I selected four cases that vary in terms of the institutional arrangement which I hypothesize impacts the effectiveness of partnerships. These were (i) the Greater Amman water supply and wastewater services management contract; (ii) the Northern Governorates Water Administration Managing Consultant contract; (iii) the water user cooperatives in the Jordan Rift Valley; and (iv) the Red Dam Cooperative for Agricultural Water Reuse in Wadi Mousa. I selected four indicators to assess effectiveness: water quality, sustainability of the water supply, affordability and financial arrangements, and efficiency of the water services. My initial expectations were confirmed: institutional arrangements did have a significant impact on partnership effectiveness. The factors that appear to have the most impact are the contracts, the structure of governance arrangements, and the legal context. Contracts embodying clearly defined targets are deemed crucial in ensuring accountability to customers receiving water services.

(cont.) However, sufficient flexibility in order to allow for a considered review and possible adjustments of initially set targets is also important. Contracts must also allow the service provider adequate autonomy to operate effectively. Second, in the case of governance structures, it is those which encourage consistent and inclusive participation of partners in decision-making and information sharing that bring a positive effect to bear on PPP arrangements. And third, relevant laws and regulations need to enhance accountability to customers in urban partnerships, and farmers as irrigation water users through cooperatives in rural partnerships. My findings also suggest that failure to implement knowledge transfer and the impact of troublesome historical relationships and events can thwart even well designed partnerships in the water sector.