Puntland government at the time (2012) keen on Public Private Partnership.
In Puntland, the Government has a more positive opinion of private sector involvement in public service delivery, but, like Somaliland, the public sector has weak capacity and plays a very minor role in carrying out its duties under the nominal ‘PPP’ arrangements. Under current arrangements, strong private sector control of the market could be damaging, particularly as certain actors in the sector are enriched, while poor communities fail to benefit from improved water services. While PPP arrangements can lead to vast improvements in reliability, efficiency, financial management, revenue collection and maintenance of key equipment including generators and pumping gear, this relies on a well-defined framework and responsibilities for the various stakeholders.
Furthermore, private sector financing can be leveraged to improve sustainability of operations, though this can only be enabled if both public and private sectors engage effectively and assume their roles. The project should propose an approach, working closely with the Government, PSAWEN, the private sector and urban communities to develop a common framework to govern the implementation of appropriate service delivery mechanisms, to address weak capacity of the public sector, to define responsibilities in service delivery framework and contract agreements and to establish an oversight system to monitor the implementation of such Service delivery arrangements. This approach should draw on lessons learned and on the draft WASH sector strategy implemented under the Joint Programme on Local Governance and the associated draft paper on service delivery mechanisms. A review of the regulatory framework and associated legislation should also be carried out.