Taking the energy challenge into account in sanitation PPPs

The energy crisis that the world is facing in 2022 continues to push further Public and Private players into reexamining their usual practices. The financial structuring of Public Private Partnerships (PPP) in the sanitation sector is no exception.

Commissioned to assist the Tunisian Government in its studies for the development of a wastewater treatment plant in the form of a PPP, Phoenix had to ensure that the financial engineering of the project documents included mechanisms that encouraged virtuous practices in terms of energy: how to avoid making the Private Partner bear the risk of a sharp increase in the price of electricity purchased from the network while ensuring it is incentivized towards energy savings? How can we encourage bidders to incorporate innovations such as the production of biogas from sludge into their projects, without penalizing them in their financial evaluation when selecting a bidder?

It is by working in close collaboration with the technical design office and the legal advisors involved in the project that Phoenix was able to make innovative recommendations for the project. A PPP is a long-term contract: it is better to anticipate all its challenges before launching it.