Light Public-Private Partnerships in the water supply sector: Malawi and other case studies from Sub-Saharan Africa

The paper analyses light forms of Public-Private Partnership (PPP), namely management and service contracts, in the water supply sector of Sub-Saharan Africa, based on original research in Malawi and on a review of five additional case studies. We refer to information asymmetries and contract theory to explain the observed performances of the PPPs. The paper considers the incentives to engage in the partnership and to undertake a high effort level, jointly with the challenges preventing effort to translate into performances. The study concludes that some problems encountered by light PPP experiences are intrinsic to their incentive structure and discusses the policy implications of light PPPs promotion in the context of the Aid Effectiveness debate.