Potential benefits of public-private partnerships to improve the efficiency of urban wastewater treatment.

ABSTRACT

For emerging economies lacking public budgets, continuous improvement of urban wastewater treatment efficiency (UWTE) requires effective government supervision of wastewater treatment infrastructures (WTIs) and participation of private capital seeking to profit-maximising. However, to what extent this public-private partnership (PPP) model, aimed at a reasonable sharing of benefit and risk, in delivering WTIs can improve the UWTE is unknown. We evaluated the impact of the PPP model on the UWTE by collecting data from 1303 urban wastewater treatment PPP projects in 283 prefecture-level cities in China from 2014 to 2019 and used data envelopment analysis and Tobit regression model. The UWTE was significantly higher in prefecture-level cities that introduced the PPP model in the construction and operation of WTIs, particularly those with a feasibility gap subsidy, competitive procurement, privatised operation, and non-demonstration. Moreover, the effects of PPPs on UWTE were limited by the economic development level, marketisation, and climatic conditions.