| |
Public–private partnerships today
Approximately 40 percent of all U.S. drinking water systems are privately owned, regulated systems. Among the 60 percent of systems owned by local governments, contract O&M has grown rapidly in recent years. In 2001, nationwide outsourcing of water and wastewater services grew by 13 percent after growing by 84 percent in total during the 1990s.
By the end of 2001, nearly 1,300 local governments had outsourced the operation of wastewater systems and more than 1,100 had done so with drinking water systems (Source: Reason Public Policy Institute).
The future of public–private partnerships
One driving force behind the continued expansion of water partnerships is the growing need for investment in aging water and wastewater infrastructure. Private companies such as CH2M HILL and their local government partners are shaping agreements that often include provisions for major capital improvements necessary to comply with increased regulatory demands.
These innovative partnerships will play a critical role in meeting the staggering infrastructure costs confronting local governments. According to the U.S. Environmental Protection Agency, communities will need an estimated $300 billion to $1 trillion over the next 20 years to repair, replace or upgrade aging drinking water facilities, accommodate growing population, and meet new water quality standards.
An August 2002 U.S. Government Accounting Office (GAO) report hinted at some of the reasons why private partners will continue to play an important role in addressing water and wastewater needs. The GAO found that private firms are better equipped to think strategically, manage for the future and keep costs stable. The proven track record of private O&M companies such as CH2M HILL OMI — and the continued need to find creative solutions to effectively manage and improve water and wastewater systems — is expected to lead to continued growth in public-private partnerships. |
