Applying Public Private Partnership on Water Projects:Espirito Santo, Brazil

Abstract

In Brazil, the State of Espirito Santo decided to develop the water supply and sanitation in the area due to lack of clean potable water, the shortage of sufficient drainage system, and quick destruction of the environment from dumping of waste. The aim of this thesis is to express the survey result to assess the feasibility of a present project to mitigate some shortfalls of drinking water and wastewater services in the area. There are some suggestions for better investment and operating cost strategies by use of incorporated evaluation of the fiscal, distributive, economical as well as the risk, which distributes within the project. The thesis outcomes show that the plan is projecting to generate substantial economic benefits to the society by reducing the pollution although in its present state, it is not probable to be fiscally viable. In addition, the key in improvement of the financial sustainability and perhaps the profitability of the system is directly related to enhancements in operating and management performs, which concentrate on the subjects of water discharge, billing and groups. A major challenge in the survey has been the valuation of intangible profits to the environment and their involvement in the project’s evaluation of discounted net economic gains. With no assessment of these services, the general "economic value" of present project will be acutely underestimated.