Professionalization Contracts for Small Municipal Water Service Providers in India : Business Model Development
Professionalization contracts are a new concept. The aim of these contracts is to enlist the support of specialized private firms in turning public water utilities into competent professional operators. This report looks at how the business model f...
| Main Authors: | , , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/06/24624565/professionalization-contracts-small-municipal-water-service-providers-india-business-model-development http://hdl.handle.net/10986/22043 |
| Summary: | Professionalization contracts are a new
concept. The aim of these contracts is to enlist the support
of specialized private firms in turning public water
utilities into competent professional operators. This report
looks at how the business model for such contracts may work.
This report builds on fieldwork and consultation in India.
The model described in this report reflects two weeks of
meetings with water sector stakeholder in India, including a
workshop held at the World Bank country office in Delhi on
22 March 2011. The report gives introduction in section one.
It describes briefly the need for professionalization
contracts in India, and the target market section two. It
then summarizes what the contractor will do, and how this
differs from traditional capacity building, as well as from
traditional public private partnership (PPP) concepts such
as management contracts section three. The report then
describes the complementary policy and institutional reforms
that will be needed at the state and local government levels
to make professionalization contracts successful section
four. Section five looks at the political economy of
professionalization contracts, identifying risks, and how
these risks can be mitigated through design of the
institutional reforms and the business model. Section six
then turns to the true business model aspects by describing
indicative costs of the professionalization contract and the
complementary investments required. Section seven considers
what the sources of funding for these costs would be, and
section eight goes on to explain how the contractor will be
paid, and hence the incentives under which it will operate.
Section nine looks at the market of potential contractors,
and examines their incentives to participate. Finally,
section ten sets out some considerations for developing the concept. |
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