2017 Water and Sewerage Sector : Private Participation in Infrastructure
In 2017, 30 projects in the water and sewerage sector received a total of USD 1.9 billion in investment—a decline of seven percent from 2016 levels. This not only marks the second-lowest level of investment in the previous 10 years (after the USD 1...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/153791544122745982/2017-Water-and-Sewerage-Sector http://hdl.handle.net/10986/31036 |
| Summary: | In 2017, 30 projects in the water and
sewerage sector received a total of USD 1.9 billion in
investment—a decline of seven percent from 2016 levels. This
not only marks the second-lowest level of investment in the
previous 10 years (after the USD 1.2 billion recorded in
2011), but is also 55 percent lower than the five-year
average investment level of USD 4.2 billion. The investment
peak of USD 6.0 billion in 2012 was due to a substantial
amount of investment (USD 5.4 billion) in LAC. A second peak
in 2015 was the result of USD 3.1 billion worth of
investment in LAC and a USD 1.2-billion investment in
Russia. The declining levels of sectoral investments in
recent years are largely explained by the muted investments
in these regions. The PPI investment commitment in this
sector in 2017 accounted for only two percent of the total
PPI investment, compared to 3.8 percent over the previous
five years, and three percent over the previous 10 years. On
the brighter side, 2017 marked a 21-percent increase in
investments in water-treatment plants, which accounted for
84 percent of sectoral investments (USD 1.6 billion out of
USD 1.9 billion). It is also 50-percent higher than the
average investment in water-treatment plants in the previous
five years. China accounted for four-fifths of investments
in water-treatment projects, with the majority of these
being greenfield projects. 2017 WATER & SEWERAGE SECTOR
On the other hand, the water-utility subsector received the
lowest level of investment of the previous 10 years; this
was the primary cause for the drop in sectoral investments
in recent years. There were only three water-utility
projects, with a total worth of USD 291
million.Interestingly, the water sector saw a large
percentage of contracts granted at the local or municipal
levels. Over the previous 10 years, an average of 77 percent
of contracts were granted at the local and municipal levels,
whereas for other sectors, a majority of contracts were
granted at the national level. In 2017, 22 of 30 projects
were contracted by local or municipal governments.
Twenty-one of these projects were in China; they amounted to
USD 1.06 billion, and 20 of them were treatment plants. Of
the four projects that were contracted by state or
provincial governments, three were from China and amounted
to USD 365 million. Brazil had one project (worth USD 3.4
million) contracted by a local or municipal government, and
one project (worth USD 215 million) by a state or provincial
government. There were also individual projects seen in
India, Indonesia and Rwanda that were commissioned by the
national government. |
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