Public–Private Partnerships in the Water Sector: The Case of Desalination

Public–private partnerships (PPPs) have grown in popularity as a method to leverage private sector actors in the production of government services. With the global challenge of water insecurity, PPPs are becoming more common for large scale water infrastructure projects. One prominent example is the water desalination industry. Global desalination capacity has grown in recent decades driven by demand for alternative water sources. However, desalination facilities remain complex and expensive operations. In this paper, we examine the role of private actors working in partnership with public entities in the delivery of drinking water using the case of desalination. We examine global trends in PPPs and discuss implications for the desalination industry as well as water infrastructure more broadly. Additionally, detailed data on desalination facilities were collected in Israel, Australia, and the United States including key stakeholder interviews. Results demonstrate an increase in PPP use in the water sector over time along with significant regional variation. We also find that the public sector partners often rely on private sector partners in the design, build, and operation stages of the project regardless of the amount of public financing.