PURSE [private participation in urban services project] project : mid-term evaluation

Mid-term evaluation covers the period 9/91-5/96. This timely project has helped to create a strong interest and commitment to private participation in the provision of urban services within both central and local governments and the private sector. Early problems, due partly to contractor staffing and management problems and partly to the project's novelty and complexity, have been mostly resolved and useful. Policy papers, overseas training of managers and policy makers, demonstration projects, and other outputs have established a good foundation for a successful conclusion to the project and sustainability thereafter. Particularly valuable have been the following recent achievements: progress in developing Project Life Cycle' materials; a clear definition of the roles and responsibilities of key central government agencies; development of risk management guidelines; increased emphasis on demonstration projects; and improvement in the project's practical orientation and its degree of engagement with local government. In addition, three technical papers have been prepared that provide practical guidance on engineering risks, unaccounted-for water loss, and performance targets; another paper addresses complex issues in water concession agreements. The project has yielded a number of lessons: (1) heightened realization of the difficulty of promoting private sector participation in ways that benefit both the public and private sectors; (2) the importance of achieving a clear consensus among project stakeholders regarding issues and priorities that can be effectively addressed; (3) the importance of an institutional framework and leadership that can resolve conflicts, set priorities, monitor and evaluate, and redirect the program if necessary; (4) the need for policy and regulatory work to lead to concrete, operational results; (5) the need for demonstration projects to reflect clients' real needs (i.e., to be demand-driven), to focus on quality not quantity, and to be relevant, replicable, and promptly disseminated; and (6) the need for training to be adapted to local conditions and provided at a relevant scale and on a sustainable basis.