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Public and Private Participation in the Water and Wastewater Sector

Public and Private Participation in the Water and Wastewater Sector

Cledan Mandri-Perrott

(2009)

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Book Details

Abstract

Public and Private Participation in the Water and Wastewater Sector provides practical guidance on applying Public Private Partnership structures within the constraints of European legislation, with examples on how to ensure consistency with EU procurement, competition law and the Water Framework Directive. It reconciles the need for adequate regulation within the context of a monopoly provision of service – a major concern of the European competition policy. 
The purpose of this book is to provide practical guidance on how to introduce a Public Private Partnership (PPP) as a strategy towards helping meet the demands for massive capital investments and improved management and performance in the water and wastewater sector. The introduction of PPPs within a European context needs to be assessed against compliance with basic EU law principles related to Competition and the Water Framework Directive. International legal structures in the management, distribution and treatment of water are discussed. There is a brief overview of the present realities of European integration, the political and legal aspects involved in the water sector and two cases in which a viable solution was reached and which form the basis of this research. The book examines the general principles of EU law in terms of competition and procurement and how other directives have an impact on PPP. It then assesses the specific rules applicable to PPP in the EU context, and their implications in designing water PPPs. The book concludes with a review of two case studies (the City of Sofia, Bulgaria and the City of Tallinn, Estonia) that show how the Public Private Partnership structure chosen provides a sound legal basis and a viable way to achieve compliance with Community law and the Water Framework Directive, thus assisting the process of accession to the EU for each country. 
Public and Private Participation in the Water and Wastewater Sector: Developing Sustainable Legal Mechanisms is principally aimed at supporting municipal, provincial, and central governments and other policy makers seeking to improve water services. It is a must read for policymakers and practitioners seeking to navigate through the intricacies of EU legislation and the complexities of public private partnerships. The principles addressed in this book will also be useful outside the European context.   
See also: Private Sector Participation in Water Infrastructure, Organisation for Economic Co-Operation and Development (OECD), 2009; Public Private Partnerships in the Water Sector, Innovation and Financial Sustainability, Cledan Mandri-Perrott and David Stiggers, 2012 

Table of Contents

Section Title Page Action Price
Half title
Series
Title
Copyright
Contents
Table of Abbreviations
Acknowledgements
About the Author
Abstract
Chapter 1: Introduction
Chapter 2: The impact of European Union accession on water utilities
2.1 EU AND ITS IMPLICATIONS FOR THE WATER SECTOR OF ACCESSION COUNTRIES
2.2 CONTEXT OF EUROPEAN INTEGRATION
2.3 EUROPEAN ENLARGEMENT AND ITS ACCESSION PROCESS
2.3.1 General Accession Criteria
2.3.2 Drivers for implementing Accession Criteria
Chapter 3: Public Private Partnership as an instrument to EU accession
3.1 PUBLIC PRIVATE PARTNERSHIPS: A POSSIBLE SOLUTION?
3.2 CONSIDERATIONS FOR PPP IN THE PROVISION OF WATER AND WASTEWATER SERVICES
3.3 PROJECT FINANCE, PPP OPTIONS AND IMPLICATIONS
3.3.1 Service Contracts
3.3.2 Management Contracts
3.3.3 Lease Contracts
3.3.4 Concession Contracts
3.3.5 BOOT Contracts
3.3.6 Joint Ownership
3.3.7 Outright Sale/Divestiture
Chapter 4: A summary on Economic Regulation and its implications on PPPs in the EU
4.1 BASIC PRINCIPLES OF REGULATION
4.2 REGULATION OF PUBLIC AND PRIVATE SERVICE PROVIDERS
4.3 REGULATION, NATIONAL POLICY AND THE EU LEGISLATIVE CONTEXT
4.4 DEVELOPING A REGULATORY FRAMEWORK FOR EFFECTIVE PPP
4.4.1 Predictability
4.4.2 Adequate alignment of the PPP contract with national law
4.4.3 A well defined PPP contract
4.4.4 A degree of flexibility to deal with long contract periods
4.4.5 Independence, accountability and transparency of regulation
Chapter 5: European Legal framework and its implications on PPP
5.1 EU’S APPROACH TO PPP
5.2 RELEVANCE OF EU LAW IN THE WATER SECTOR
5.2.1 EU Utilities Directive
5.2.2 Implications of public involvement & ownership under EU
5.2.3 Implications of State Aid
5.2.4 EU Competition Law
5.2.5 Other considerations related to EU Competition Law
5.3 EU LEGAL POSITION ON PPP
5.4 EU CONTRACTING OPTIONS FOR PPP
5.4.1 Implications of PPP, national law and concessions
5.4.2 Purely Contractual PPP
5.4.3 PPPs as concessions
5.4.4 Institutionalised PPPs (IPPPs)
5.5 WATER FRAMEWORK DIRECTIVE – BACKGROUND & DEVELOPMENT
5.5.1 Brief analysis of the WFD
5.5.2 Summary of environmental objectives of the WFD
5.5.3 Summary of Managerial objectives of the WFD
5.5.4 Framework for analysis of WFD in Water & Wastewater Utilities
WFD 1. Water Quality – ‘‘Good Status’’
WFD 2. Management by River Basin
WFD 3. Public participation
WFD 4. Monitoring and Reporting
WFD 5. Cost recovery
Chapter 6: Framework to achieve consistency between a PPP structure and EU law
6.1 RATIONALE BEHIND THE PROPOSED FRAMEWORK TO ACHIEVE CONSISTENCY BETWEEN A PPP STRUCTURE AND EU LAW
6.2 OVERVIEW OF THE PROPOSED FRAMEWORK FOR PPP COMPLIANCE WITH EU LAW
6.2.1 Framework 1: EU Competition Law
6.2.2 Framework 2: Regulatory Provisions
6.2.3 Framework 3: Water Framework Directive
Chapter 7: The Sofia, Bulgaria Concession Contract
7.1 BULGARIA – HISTORICAL BACKGROUND TO PPP
7.2 PRIVATE SECTOR PARTICIPATION IN SOFIA
7.3 OVERVIEW OF PPP DEVELOPMENT & PROCESS
7.4 APPLICATION OF FRAMEWORK 1: EU COMPETITION LAW
7.5 APPLICATION OF FRAMEWORK 2: REGULATORY PROVISIONS
7.6 APPLICATION OF FRAMEWORK 3: WATER FRAMEWORK DIRECTIVE
7.7 BULGARIA SOFIA SUMMARY OF FINDINGS
Chapter 8: Tallinn, Estonia partial divestiture/sale contract
8.1 ESTONIA – HISTORICAL BACKGROUND TO PPP
8.2 PRIVATE SECTOR PARTICIPATION IN TALLINN
8.3 OVERVIEW OF PPP DEVELOPMENT & PROCESS
8.4 APPLICATION OF FRAMEWORK 1: EU COMPETITION LAW
8.5 APPLICATION OF FRAMEWORK 2: REGULATORY PROVISIONS
8.6 APPLICATION OF FRAMEWORK 3: WATER FRAMEWORK DIRECTIVE
8.7 ESTONIA TALLINN SUMMARY OF FINDINGS
Chapter 9: Conclusions
AREAS FOR FUTURE RESEARCH
Annex 1
FRAMEWORK 1: EU COMPETITION LAW
Annex 2
FRAMEWORK 2: REGULATORY FRAMEWORK FOR ANALYSIS
Annex 3
FRAMEWORK 3: WATER FRAMEWORK DIRECTIVE (WFD)
Annex 4
DIAGRAMMATIC REPRESENTATION OF TEST
BIBLIOGRAPHY
A. PRIMARY SOURCES
A.1 Treaties
A.2 EU directives
A.3 Other EU measures
A.4 Legal documentation of PPP processes (Sofia and Tallinn)
B. SECONDARY SOURCES
B.1 Books
B.2 Articles and presentations
B.3 Reports and periodicals
B.4 Interviews
B.5 EU cases and European Court of Justice decisions
B.6 Internet resources