Public-Private Partnerships (PPP) and Their Impact on Borama City

Public-Private Partnerships (PPPs) are collaborative arrangements between government entities and private sector organizations aimed at improving the delivery of public services and infrastructure. This document focuses on the PPP model implemented in Borama City, Somaliland, through the SHABA Water Company, illustrating its benefits, initialization process, and transformative impact.

What is a Public-Private Partnership (PPP)?

A PPP is a framework where the public and private sectors join forces to achieve shared objectives, typically involving the development, financing, and operation of public infrastructure or services. The private sector brings technical expertise, financial investment, and efficiency, while the public sector ensures that the partnership aligns with public needs and policy goals.

PPPs are widely used in sectors such as water and sanitation, power generation, transportation, and healthcare. They are particularly beneficial in contexts where public resources alone cannot meet the growing demand for essential services.

The Need for a PPP in Borama

In 2000, Borama City faced a severe water crisis characterized by:

• Inadequate Infrastructure: The existing water supply system could not meet the city’s growing needs.
• Mismanagement: A lack of stakeholder involvement and poor oversight led to inefficiencies and unsustainable operations.
• Water Scarcity: Residents experienced water shortages, with supply limited to alternate days.
• Health Risks: Frequent outbreaks of waterborne diseases, such as diarrhea, underscored the urgent need for improved water services.

The crisis prompted a workshop organized by Amoud University, bringing together community leaders, business representatives, civil society organizations, and regional authorities to identify solutions. One key recommendation was to adopt a PPP model to address the city’s water challenges.

Initialization of the PPP in Borama

The establishment of SHABA Water Company as a PPP was a participatory and transparent process. Key steps included:

1. Stakeholder Engagement: Public meetings were held to inform all stakeholders about the selection process for the private operator.
2. Call for Applications: Interested parties were invited to submit applications, resulting in 19 eligible candidates out of 73 initial applicants.
3. Formation of SHABA: The selected private operator partnered with the public sector to form SHABA Water Company, ensuring accountability and transparency in its operations.

The PPP model was supported by sensitization workshops funded by UNICEF and facilitated by the Ministry of Water Resources. These workshops raised awareness among stakeholders and garnered support from the business community and donors.

How PPP Helped Borama City

The PPP model transformed water service delivery in Borama, addressing the city’s longstanding challenges. Key achievements include:

• Reliable Water Supply: Water availability improved from alternate days to a 24-hour service.
• Expanded Coverage: Household connections increased dramatically, from 180 in 2000 to 19,675 by May 2023.
• Health Improvements: Waterborne diseases were significantly reduced, with no major outbreaks reported in recent years.
• Operational Efficiency: SHABA implemented advanced management systems, such as the Billing Information Management System (BIMS) and Asset Information Management System (AIMS), to streamline operations.
• Social Responsibility: SHABA supported community initiatives, including monthly contributions to Amoud University.

Benefits of the PPP Model in Borama

The adoption of the PPP model brought numerous benefits to Borama City, including:

1. Improved Service Delivery: The private sector’s involvement enhanced efficiency, reliability, and responsiveness in water services.
2. Financial Sustainability: SHABA ensured sustainable operations, including maintenance and repairs, while keeping water prices affordable.
3. Increased Access for Vulnerable Communities: The PPP expanded water access, particularly for low-income households.
4. Economic and Social Development: Reliable water services supported economic activities and improved the overall quality of life for residents.
5. Replicability: The success of SHABA’s PPP model has inspired similar initiatives in other sectors, such as solid waste management and slaughterhouse operations.

Key lessons from Borama’s experience include the importance of stakeholder engagement, a clear regulatory framework, and ensuring sufficient resources before launching PPP initiatives. Proactive planning and donor support are also critical.

Conclusion

The PPP model implemented through SHABA Water Company has significantly improved water services in Borama, making it a replicable success story for other regions. By leveraging the strengths of both public and private sectors, the model has addressed longstanding challenges, improved quality of life, and laid the foundation for sustainable development. With continued investment and support, PPPs can play a transformative role in meeting public service needs in Somaliland and beyond.