Prospects of Private Sector Participation for Sustainable Water and Sanitation Services in the Gaza Strip

Abstract

Gaza Strip is considered one of the poor and limited water resources areas in the region. According to PWA strategy, water and wastewater services provision requires large investments in order to secure sustainable development and meet future needs. Municipalities of Gaza Strip as the main water service provider suffered from financial and managerial problems including lack of financial resources, deficiency in operation and maintenance and high level of water losses. Despite of large donations directed to the water and wastewater infrastructure, Gaza Strip is still facing a chronic deficiency in water resource and wastewater treatment and disposal. Until now the regulating bodies in the Palestinian Authority do not have clear picture about the private sector options of involvement and participation in the water sector development and management to achieve sustainable water and wastewater services. This study highlights all aspects and options related to private sector participation in the water sector in the Gaza Strip in the light of the international trends for water sector privatization and the existing water and wastewater service situation. The study also reviewed and discussed the Management Contract of "Gaza I project" practiced between the years 1996-2001 which was considered an indicative exercise for PSP in the study. The instruments of the study are reviewing the international literature and field survey using questionnaire and interviews with key persons in the water sector. The study resulted in a conclusion that, in the prevailing unstable economic and political situations, the potential successful forms of PSP in the Gaza Strip are short or medium term contracts (e.g. Management Contracts). Enforcing of water regulations and enhancing the role of the regulating bodies are essential to overcome many constraints hindering the development of a successful PSP in the water sector. Finally, from the analysis of the PSP in the Gaza Strip the study concluded some recommendations oriented to the decision makers in the related authorities and institutions.