AMMAN - Representatives from the Kingdom's water institutions, the private sector and the donor community convened on Wednesday to consider public and private sector cooperation in water distribution.
"Private Sector Participation (PSP) in the water sector is a mechanism of great relevance for a country like Jordan," said Joachim Prey, director of the German Agency for Technical Cooperation (GTZ) in Jordan.
"Private companies can contribute with state-of-the-art management methodologies and technologies that enable water institutions and consumers to use the available water more efficiently," he added.
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.
"Transferring those tasks to private companies, who have the financial resources and the expertise, would result in a more efficient system that combines business interests with development policy goals," GTZ Water Programme Manager Dieter Rothenberg explained.
"This way the state would act as a referee and not as a player in the game," he added, noting that the government would draw up the legal framework under which private companies would implement their projects.
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.
"Nonpayment for water leads to overuse of water resources and a country like Jordan cannot afford to have nonpaying customers," Rothernberg argued.
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.
By Maria Font de Matas
© Jordan Times 2008
