Private sector participation in water supply and sanitation - download pdf or read online

By Emanuel Idelovitch

ISBN-10: 0821332198

ISBN-13: 9780821332191

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As a result, successful PSP requires public education and the consensus of all stakeholders. In most PSP options, many obstacles can be overcome by procuring the services required through a transparent bidding and award process. The bidding procedures should include, at a minimum, the establishment of sound qualification criteria and procedures, a clear definition of the evaluation methodology, and preparation of the documents well enough in advance to permit open and universal bidding. Page 3 A Case Study: The Buenos Aires Concession The government of Argentina, with the World Bank's support and assistance, embarked in 1990 on a massive and ambitious privatization program, encompassing virtually all the public services and federally owned enterprises.

Under such circumstances, service expansion is rather limited and cannot cope with population growth. Commercial and Financial Problems Consumption metering is limited or does not exist at all. Even when it does, regular meter reading and billings based on actual consumption are rarely practiced. In many cases, water charges are based on lot size and property value, regardless of the amount of water consumed. The unmetered system creates distortions in consumer charges, which Page 9 result in legitimate consumer protests.

The unfortunate result has been the opposite of what was intended: in unmetered systems with underpriced water, the wealthy who consume more water enjoy the largest subsidies. The poor are rarely connected because utilities view them as commercially unattractive at the low prevailing tariffs. Chile represents an exception because water charges reflect full economic costs and subsidies are provided for the low-income population directly from the central budget rather than through cross-subsidies.

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Private sector participation in water supply and sanitation in Latin America by Emanuel Idelovitch


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