PUBLIC – PRIVATE PARTNERSHIPS
SwissQuest Public-Private Partnership
Public – Private Partnerships are a mechanism for Water Service Providers to procure and implement public infrastructure (such as our Prepaid Water Meters) or services using the resources and expertise of the Private Sector. Where such a Water Service Provider requires more efficient technology or services, a partnership with the Private Sector can foster new solutions and bring finance.There are broadly three types of Infrastructure Public Private Partnerships;
- Build – Own – Operate – Transfer (BOO) Agreement
- Build – Lease – Transfer (BLT) Agreement
- Design – Build – Operate (DBO) Agreement
We engage Water Service Providers on Model Two i.e. Lease – Transfer Agreement. This is a Financing arrangement whereby SwissQuest Co. will Finance, Acquire, Install & Lease the Prepaid Water Meters to the Water Service Provider to Operate for a very affordable monthly fee for a Term to be agreed upon, and then transfer ownership of the Prepaid Water Meters to the Water Service Provider at the end of the Lease Term. The Costs would be recovered monthly directly from the Prepaid Paybill Payments. This Public – Private Partnership between Water Service Providers & SwissQuest would enable Water Service Providers acquire our Prepaid Water Meters for its Customers at a very reasonable & affordable cost.
BENEFITS OF THE BLT PUBLIC- PRIVATE PARTNERSHIP TO WATER SERVICE PROVIDERS
1) Low Costs in the Short Term: By leasing, the Water Service Provider would get the Prepaid Water Meters they need immediately, without paying the full cost of the Prepaid Water Meters upfront. The monthly Payments would be low, regular and fixed, which makes budgeting easy
2) Leases are not Bank Loans therefore the Water Service Providers Lines of credit with the Banks would stay freed up to borrow for other needs such as Water Infrastructure Development
3) Minimal payment: The Water Service Provider would only be required to pay a minimal 10% down payment Per Prepaid Water Meter which would free up their Working Capital for other operational needs.
4) TAX Savings: Leases are not purchases and can be deducted as Business Expenses therefore significant Tax Relief to Water Service Providers
5) Easy to Upgrade the Prepaid Water Meters: Technology advances quickly, therefore the Prepaid Water Meter might have a newer model developed within another two or three years. With Leasing, a Water Service Provider would be able to exchange (upgrade) the Prepaid Water Meters.