Conceptual Framework and Transaction Model for a Public-Private Partnership In Irrigation in the West Delta, Egypt
The public-private partnership for the West Delta Project is designed as a hybrid scheme based largely on the design-build-operate (DBO) model. The transaction essentially involves contracting a private operator to take over a concession area consisting of about 79,800 hectares in the southern part of the West Delta, to design and construct the system, and to assume full operational responsibility for 30 years, including the associated demand and commercial risks. The public sector will assume ownership of the assets and take on most of the financing-related responsibilities and risks. These include the currency risk associated with a potential devaluation of the Egyptian pound. The decision process from design to execution is innovative in that it involves users from the conception, incorporates a water user council, and adopted a two-part tariff: farmers would bay both an annual fixed fee based on the land area connected and a volumetric fee based on the amount of water use.