Joint Venture Vs Consortium

What is best for one company is not always best for the consortium.

Today we’re going to explain the differences between the main collaboration models used by water companies.

They mainly differ in management, profit sharing, and risk allocation.

Think of a Joint Venture (JV) as a swimming pool. Everyone shares the same water. Whatever happens inside the pool affects everyone. If someone jumps in, everyone feels the splash.

Now think of a Consortium as a firewall. A forest may be burning just a few metres away (your partners inside), while your own trees remain green. You’re not completely isolated—wind and smoke will still affect you—but the firewall provides much greater protection from events outside your own expertise or control.

Let’s use a practical example based on a PPP project.

Imagine a client—for example, the government of a country—awards a developer or private equity company (TAQA, Acciona, ACWA Power, Engie, etc.) a 25-year Water Purchase Agreement (WPA). The tariff has been calculated based on the project’s lifecycle cost.