Funding evaluation model for the implementation of wastewater treatment projects through public private partnerships

Abstract

This paper examines the assessment and funding rate estimation process for the implementation of wastewater treatment (WT) projects through Public Private Partnerships (PPPs). The study, having as strong theoretical foundation the Cost Benefit Analysis (CBA) methodology and the quantitative Value for Money (VfM) assessment process, develops a new algorithmic type model, in order to present a process for the funding evaluation of PPP type WT project's initial investment. The model applies in those projects that are considered to be financed by both public and private sectors and further could be potentially co-financed by the European community. The model is tested in a WT project case study and calculates the upper and lower limits of the public and private sectors' funding rates in the initial investment. Due to the fact that a PPP is not a solution option but may be the procurement choice for a preferred solution option, the new model can be a useful tool to project examiners during the feasibility stage of WT projects, in order to evaluate alternative funding scenarios and propose the most suitable in each case option to decision-makers.