Outsourcing in water supply network maintenance: opportunities and risks

Water supply and sewerage networks have deteriorated in many places, and the pace of rehabilitation and maintenance has been inadequate for several years. To prevent a further increase in the renovation debt, the volume of network renovation must increase and more attention must be paid to maintenance. This requires an increase in the number of renovation and maintenance contracts between water utilities and private or public service providers. One prerequisite for the success of partnerships is that risks are managed. The results of this paper are based on a questionnaire and interview studies. The questionnaire studied the current and future rates of outsourcing of network maintenance duties. The interviews were held with both water utilities and service providers in order to establish the current situation for partnership contracts and outsourcing. The water utilities commonly outsource renovation tasks in particular based on the use of no-dig methods (a method in which an attempt is made to renovate with minimal or zero digging). However, they do not wish to outsource maintenance duties that may threaten the quality of domestic water. Service providers are interested in deeper co-operation. Cost-effectiveness and service development can be achieved via more comprehensive and longer-term contracts. Successful partnerships require contract know-how and risk management, and they must be in the line with the strategy of the water utilities