Global water scoping process : is there a case for a multistakeholder review of private sector participation in water and sanitation? : scoping report : full report

In the past two decades of expansion of private sector participation in the water sector, there have been many public scandals and claims of corruption, rapid increases in tariffs, lack of promised private capital investments, decline in quality of services, and a continued failure to adequately increase services to poor communities. The public debate became polarised between those that pushed PSP as a panacea to the problems in the water sector and those that wanted to ban PSP from any role in the water sector. This polarisation of ideas has led to major conflicts, especially around large-scale water privatisation projects, which many stakeholders perceive to bring significant costs to society.

In recognition of this problem, a global review of the impact of PSP in water was initiated at the International Freshwater Conference in Bonn, Germany in December 2001. A Working Group, formed from organisations with widely differing backgrounds and views on private sector participation, took up the challenge and explored the case for a Multistakeholder Review through the Global Water Scoping Process documented in this report. It describes the perspectives of a wide range of stakeholders regarding the impacts of PSP in water and sanitation. It describes the major faultlines in the debate, based on the perspectives of stakeholders; identifies key questions that can help reframe the debate in a positive way towards meeting the goals of universal access to water and sanitation; and makes recommendations about how to undertake a global multistakeholder review of PSP in water and sanitation.