PPPUE: Tools for pro-poor municipal PPP: Mod 04/4-Collecting Information

4.1 What types of information are required?

4.2 How is the information collected?

4.3 Who collects the information?

4.4 Using information (what is needed and when?)

4.5 What are the underlying issues to keep in mind?

Module 04: Collecting Information

4.4. Using information (what is needed and when?)

Summary of Actions...
...Review the regulatory and institutional issues
...Assess the state of the utility (financial, technical and performance)
...Conduct consumer surveys (perceptions, willingness and ability to pay)
...Assess the present and future efficiency and capacity of the private sector to participate in service provision
...Identify stakeholders that support and oppose private sector participation

The information collected from various sectors can be used during the analysis and planning stages of developing the PPP. This information also needs to be conveyed to the potential partners by a champion, who might originate from within either of the (public or private sector) parties to the partnership.
The information collected can be used for the processes outlined below:

◊ Identification of problems that need to be solved. This stage identifies the weaknesses within the services currently being provided by the municipality. The information needed to identify problems includes:

• an assessment of the performance of the utility/agency; and
• an assessment of consumer perceptions.

◊ Overview of existing political, legislative and legal framework. This will help to determine if the existing framework supports private sector participation and the areas that require modification.

◊ Identification of key stakeholders that support and those who are likely to oppose private sector participation. This information will highlight:

• processes and policies that may be put in place to meet stakeholders’ concerns; and
• procedures that can be put in place to minimise the risk of political interference.

◊ Study of implications of increased coverage and service levels for the tariffs that consumers will pay. For this, the information needed includes:

• assessment of the performance of the utility (coverage area, service levels, cost of service provision and tariffs);
• appraisal of the efficiency of the private sector to perform better than the utility, but without increasing tariffs greatly; and
• analysis of consumers’ willingness and ability to pay for improved services.

◊ Assessment of viability of the assets of the utility/agency. This information will be used to determine if the utility’s existing assets are good enough to form the basis for long-term private sector participation.