Abstract
Abstract This chapter presents a case study of a recent water public–private partnership (PPP) in Rwanda, which has many of the hybrid features discussed in earlier chapters, including the use of blended finance. But the extensive use of blended finance needed to make this PPP commercially viable raises questions about how that blended finance was justified. How much subsidy in support of private finance is too much? Is it possible that a project like this may exceed a threshold beyond which it would be less expensive and more sustainable if implemented as a public project supported by concessional lending, rather than as a PPP with a relatively small measure of private finance (but all the costs and complexities that come with PPPs)? Are there more traditional contracting mechanisms that might work better than PPPs? Countries like India are experimenting with such alternatives to PPPs for less commercial projects in poorer regions.
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