A study by the Asian Development Bank (ADB) shows that private sector participation (PSP), has not shown encouraging results in the water supply and sanitation (WSS) sector.
Published on: 10/10/2008
In particular, private resources have not been adequately mobilized to solve WSS sector problems as anticipated by the proponents of PSPs. PSPs in the WSS sector managed to succeed in environments where effective regulation, good governance, and contract enforcement were prevalent. Effective demand for improved WSS services and innovative approaches for competition also paid an important role. Experience also showed that public water utilities can work well when anchored on reforms with ingrained internal and external accountability, customer orientation, and autonomy. While ownership itself hardly influences the efficient provision of WSS services, the interdependence of the public and private players should not be overlooked; a reasonably well-functioning public sector is a precondition for the success of private provision of WSS.
Gunatilake, H. and Carangal-San Jose, M.J.F. (2008). Privatization revisited : lessons from private sector participation in water supply and sanitation in developing countries. (ERD working paper ; no. 115). Manila, Philippines, Asian Development Bank. 49 p. Download here [PDF file, 2 MB]
At IRC we have strong opinions and we value honest and frank discussion, so you won't be surprised to hear that not all the opinions on this site represent our official policy.
