The Profitability of Palestinian Municipal Water Projects

Mediterranean Research Meeting, European University Institute, Florence, Italy, The 13 Research Meeting Montecatini Term, 21-24 March 2012

15 Pages Posted: 9 Dec 2012

See all articles by Nidal Rashid Sabri

Nidal Rashid Sabri

Birzeit University

Dima Hanyia

Birzeit University - College of Economics

Rania Yaser Jaber

Birzeit University - Faculty of Commerce and Economics

Date Written: 2012

Abstract

This study aims to discuss the profitability and performance of the water sector in the Palestinian economy. The water utility provided for the Palestinians through two channels, either through special departments within local municipalities and village councils, or through independent specialized public authorities. The study used two research instruments to accomplish the stated purposes including financial analysis for various aspects of cost, revenues, ratio of lost, collection ratio for existing water projects. In addition a special questionnaire to get the perceptions of the related stakeholders including citizens regarding the major issues related to providing water supply, such as the price, quality of services and about the concept of private sector participation of running the water project sector in the Palestinian economy.

The study found that water projects provide about one quarter of the total revenues for local governments including municipalities and village councils, In addition almost all water projects which offer water supply to Palestinian citizens in West Banks produced revenues at district level, with profit ratio ranged between 15% up to up to 37% annually. The price of water is varied in the Palestinian municipalities and districts, it ranged from 6.66 NIS in Ramallah district (almost 2 $) to 1.23 NIS (30 cents) in Qalqilia municipality. This is due to various reasons including the cost of production and distribution; administrative cost and the ratio of water lose. Thus, the margin contribution of water m3 is also varied for individual water projects, but the majority has positive return. The output of water projects will be more profitable if the water lost ratio reduced and the collection ratio of account receivable improved.

Keywords: water projects, local government, Palestine, municipal business activity

Suggested Citation

Sabri, Nidal Rashid and Hanyia, Dima and Jaber, Rania Yaser, The Profitability of Palestinian Municipal Water Projects (2012). Mediterranean Research Meeting, European University Institute, Florence, Italy, The 13 Research Meeting Montecatini Term, 21-24 March 2012, Available at SSRN: https://ssrn.com/abstract=2186892 or http://dx.doi.org/10.2139/ssrn.2186892

Nidal Rashid Sabri (Contact Author)

Birzeit University ( email )

Birzeit, West Bank
Palestine
972 2 2810396 (Phone)
972 2 2982963 (Fax)

HOME PAGE: http://home.birzeit.edu/commerce/sabri

Dima Hanyia

Birzeit University - College of Economics ( email )

birzeit
Palestine

Rania Yaser Jaber

Birzeit University - Faculty of Commerce and Economics ( email )

Birzeit, West Bank
Palestine

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