The Power of Public-Private Partnerships in Water Management: Adding the fourth ‘P’

India stands at a crossroads in its water management journey.

By Arun Lakhani

Water management is no longer a challenge that governments can tackle alone. The dual pressures of rising demand and climate-induced variability have brought the global water crisis to the forefront, necessitating innovative, sustainable solutions. Public-Private Partnerships (PPPs) have emerged as a powerful mechanism to address these challenges, leveraging public sector oversight alongside private sector efficiency, technology, and investment.

In India, where water systems are strained by aging infrastructure and alarming non-revenue water losses—ranging from 37% to 50% in cities like Bengaluru—PPPs represent an opportunity to turn the tide. The combination of government guidance and private expertise can unlock scalable, sustainable water management solutions for urban and rural populations alike.

The Crucial Fourth P: People

What sets water PPPs apart from other sectors is the addition of a crucial stakeholder: People. Water, intrinsically tied to human life and welfare, requires a citizen-centric approach. Unlike other infrastructure projects, water PPPs establish a generational relationship with communities, often spanning 25-30 years. This necessitates long-term societal integration rather than transactional operations.

The success of the Nagpur 24x7 Water Supply Project exemplifies this model. As one of India’s first integrated water supply management systems under a PPP model, it has delivered equitable access, minimized wastage, and ensured consistent service. Globally, the Manila Water Project in the Philippines demonstrates the transformational potential of PPPs, where coverage expanded from 26% to 99% within a decade.

Unlocking the Benefits of PPPs

The advantages of PPPs in water management are multifaceted. By introducing performance-based operations, they address inefficiencies like leaks and non-revenue water—major issues in Indian cities. The collaborative nature of PPPs ensures that financial, technical, and operational risks are equitably shared, while enabling faster mobilization of large-scale investments compared to traditional public funding.

The infusion of private sector innovation also paves the way for advanced tools like IoT-based monitoring systems and AI-driven predictive maintenance, further optimizing water systems. Additionally, wastewater recycling, desalination plants, and aquifer recharge projects can benefit from private investment, unlocking long-term value.

Policy and Community Engagement: The Twin Pillars

For PPPs to thrive, balanced and adaptable contracts are essential. Model concession agreements with built-in flexibility for unforeseen events, coupled with regular reviews of nationwide service levels, can foster trust among stakeholders. Policy frameworks must be robust, emphasizing clear roles, transparent bidding, and accountability mechanisms. Incentives for private players to invest in projects with long-term societal benefits should also be prioritized.

Equally critical is community engagement. Transparent communication about the benefits of these partnerships, along with regular performance reviews, builds public trust. Stakeholder consultations can ensure that projects remain aligned with public welfare objectives, enhancing both acceptance and success.

Sustainable Water Management Through Collaboration

India stands at a crossroads in its water management journey. With rising urbanization and escalating water stress, models like PPPs—and more specifically, the 4P approach—are not just desirable but indispensable. These partnerships bridge the gap between policy and practice, enabling sustainable and equitable water systems that serve current and future generations.

Globally, initiatives like Singapore’s NEWater and Colombia’s Water Funds demonstrate how collaborative models can drive transformative change. In Singapore, cutting-edge technology and public-private cooperation have turned wastewater into potable water, now meeting 40% of the nation’s needs. Meanwhile, Colombia’s Water Funds secure water sources by restoring upstream ecosystems, achieving both environmental and economic sustainability.

Innovative Approaches for India

In India, treated wastewater can be mandated for industrial use, freeing freshwater for drinking purposes. This swap not only reduces reliance on freshwater but also avoids psychological barriers around treated water consumption. Agriculture, which consumes over 80% of India’s water, demands grassroots collaboration. Community-driven efforts like rainwater harvesting, watershed management, and participatory irrigation projects—aligned with government policies and supported by corporate funding—can bring transformative results.

Encouraging CSR investments in rural water programs, developing digital water management platforms for real-time monitoring, and scaling PPPs in wastewater treatment and desalination projects are pivotal steps forward.

Water: A Shared Resource, a Shared Responsibility

Water is more than a resource—it is the foundation of life and progress. Its sustainability hinges on collective action. Governments must create enabling policies and frameworks, while the private sector drives innovation and investment. Communities and individuals must also step forward to embrace sustainable practices.

The challenges of water scarcity, pollution, and inequity demand innovative, inclusive solutions. By fostering collaboration, we can ensure that water remains accessible, equitable, and sustainable for generations to come. The time to act is now, because water is not just an economic asset—it is life itself.

Arun Lakhani, Chairman & Managing Director, Vishvaraj Environment Pvt Ltd.

Views are personal, and do not represent the stand of this publication.