PPPs are incompatible with good public services in Nepal

Nepal has faced one socioeconomic shock after another in a relatively short period of time, be it the ten- year civil war or the devastating earthquake or the unstable government, which has changed 25 times since the restoration of democracy in 1990.

At the end of 2015, the government introduced the Public Private Partnership (PPP) policy followed by trainings and programmes emphasizing the need for private investment to finance public services, especially for the SDGs. The ultimate need of private entities to maximize profits in order to stay in business is fundamentally incompatible with protecting the environment and ensuring universal access to quality public services. This is evident in the failure of Kathmandu Upatyaka Khanepani Ltd. (KUKL), the first PPP scheme in 2008, to deliver its promise to improve the water delivery efficiency around Kathmandu Valley. High water tariffs, undersupply of water and high deficits also shows the inefficiency of the board, chaired by the representative from a private sector, along with KUKL.

Source: Nepal National Report 2017.