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model and decomposition using LMDI. It was found that the external water footprint contributes a small volume compared to the internal supply. However, improving water security is critical as there is a growing dependency on it. The decoupling results indicated that the water service contributes approximately a quarter to the municipal GDP. However, external PPP schemes make a minimal contribution to the overall GDP due to the small volume of water introduced. The decomposition results indicated that approximately 50% of external supply supports economic development.
These results indicate that there is great potential for PPP schemes to improve the socio-economic aspect of the municipality. There is a growing dependency, which indicates its positive value add. Based on the system dynamic model, it can be realised that PPP schemes have multiple benefits, spanning economic development, employment contribution, social development, municipal revenue creation, and improved tax contributions. Therefore, it can be concluded that water provision through PPPs has critical success factors and socio-economic benefits that support the municipality in meeting its constitutional mandate.
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