PUB’s PPP journey: Learning how to make the most of a scarce resource

• Main Authors: PHANG, Sock Yong, LIM, Thomas, JOSEPH, Flocy
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Public-private Partnerships; Water Supply; Risk Management; Project Management; Business and Government Relations; Facilities; Asian Studies; Public Economics
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/323; https://smu.sharepoint.com/sites/admin/CMP/cases/SMU-20-BATCH%20%5BPDF-Pic%5D/SMU-20-0044%20%5BPUB%5D/SMU-20-0044%20%5BPUB%5D.pdf?CT=1614067212108&OR=ItemsView
• Institution: Singapore Management University

PUB, Singapore’s National Water Agency, is one of the heaviest users of the Public Private Partnership (PPP) model in the public sector. As of 2020, it had awarded seven PPP contracts for a total of five desalination and three NEWater plants. Among the key features of PUB’s PPP projects were the adoption of the Design, Build, Own and Operate (DBOO) project structure; a 25-year concession period; and small-sized project teams. The main benefits which arose from these PPP projects were value for money, the introduction of new technologies and knowledge transfers, the expansion of Singapore’s private water industry, and the blossoming of Singapore into a hydro hub. However, despite letting the private sector have a hand in running the water plants, PUB was of the view that its own officers had to obtain these companies’ expertise, so that it could evaluate whether they were technically competent, and, in the event of a default, step in to manage the plants. To further mitigate against risks to Singapore’s water supply, PUB also carried out regular operations audits, and engaged the plants’ senior management regularly. The case analyses how PUB ensures that the PPP model is successful in delivering a safe and stable water supply to the public, while reaping the benefits of the model and making certain Singapore’s private water sector develops as well.