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There is no question that water pricing and public-private partnership can improve water management practices in the future. However, this concept is neither the cure-all many proponents argue, nor the disaster its opponents forecast. Providing a comprehensive and objective assessment of what does and does not work, where, why and under what circumstances, this informative collection assesses the social, economic, equity and institutional implications. This cohesive set of carefully selected essays, the result of The Third World Centre for Water Management and the Inter-American Development Bank's decision to objectively and critically assess the experiences in these areas, transcends the current dogmatic debate on these complex issues. Providing an in-depth analysis and assessment of the main issues and constraints of water pricing, private sector participation and their affect on water supply, the collection draws on illustrative case studies from Argentina, Brazil, the USA and Western European countries amongst others. This is a special issue of the Journal of Water Resource Development.
'Public-Private Partnerships for Urban Water Utilities: A Review of Experiences in Developing Countries' analyzes the market growth of Public-Private Partnerships (PPPs) in the developing world since 1990, and the performance of more than 65 large water PPP projects representing more than 100 million people for access, service quality, operational efficiency, and tariff levels. Although a relatively small portion of the water utilities in the developing world are operated under PPPs (about 7 percent in 2007), the urban population served by private water operators has grown every year since 1990. Despite many difficulties encountered by PPP projects and a few contract terminations, a large majority of contracts awarded since 1990 are still in place. The track record for improving service and efficiency reaffirms the value of PPPs to help turn around poorly performing water utilities, even though the level of private financing did not match initial expectations. Over time, a more realistic market has developed, the number of private investors from developing countries has grown, and contract designs have become more pragmatic concerning risk allocations between partners. The water sector has many features that set it apart from other infrastructure sectors. This book suggests the need for careful consideration of those specificities to successfully involve private operators. Although concessions with private financing have worked in a few places, contractual arrangements that combine private operation with public financing appear to be the most sustainable option in many countries. Policy makers, stakeholders, and donors need to remain heavily engaged in the water sector, especially in the poorest countries and during a global financial crisis. This book contributes to a better understanding of the various options to tackle the many challenges of providing water and sanitation services to urban populations in the developing world.
The purpose of this guide is to enhance the chances of effective partnerships being developed between the public and the private-sector by addressing one of the main obstacles to effective PPP project delivery: having the right information on the right projects for the right partners at the right time.
Investment in infrastructure can be a driving force of the economic recovery in the aftermath of the COVID-19 pandemic in the context of shrinking fiscal space. Public-private partnerships (PPP) bring a promise of efficiency when carefully designed and managed, to avoid creating unnecessary fiscal risks. But fiscal illusions prevent an understanding the sources of fiscal risks, which arise in all infrastructure projects, and that in PPPs present specific characteristics that need to be addressed. PPP contracts are also affected by implicit fiscal risks when they are poorly designed, particularly when a government signs a PPP contract for a project with no financial sustainability. This paper reviews the advantages and inconveniences of PPPs, discusses the fiscal illusions affecting them, identifies a diversity of fiscal risks, and presents the essentials of PPP fiscal risk management.
This book examines the role of private firms in the American water and wastewater industry. As more water infrastructure shifts from public- to private-sector control, vendors, consultants, and facilities are taking on more importance. Lewis D. Solomon presents an historical overview of water supply and treatment needs and the role of the government, including how water policy has been crafted. He argues that water scarcity is becoming a problem due to groundwater depletion, contamination, and patterns of consumption. He examines the impact of climate change on water availability and quality considering voluntary conservation programs and mandatory restrictions for water use. Solomon points to how for-profit firms can use technology to increase water supply. He describes what privatization would look like in practice and reviews evidence from two case studies. Solomon proposes privatization as a viable response to America's water crisis that can address both scarcity and capital problems. America's Water and Wastewater Crisis presents a careful examination of how the water industry has operated in the United States in the past and how it may work as we move into the future. This book is invaluable to environmental specialists, businessmen, and government officials.
Much hope has been vested in pricing as a means of helping to regulate and rationalize water management, notably in the irrigation sector. The pricing of water has often been applied universally, using general and ideological policies, and not considering regional environmental and economic differences. Almost 15 years after the emphasis laid at the Dublin and Rio conferences on treating water as an economic good, a comprehensive review of how such policies have helped manage water resources an irrigation use is necessary. The case-studies presented here offer a reassessment of current policies by evaluating their objectives and constraints and often demonstrating their failure by not considering the regional context. They will therefore contribute to avoiding costly and misplaced reforms and help design water policies that are based on a deeper understanding of the factors which eventually dictate their effectiveness.
This book compares and contrasts PPP research in the UK with that of cases in the USA, including interviews with some of the key stakeholders (decision makers in the public sector, contractors, and users) of PPPs in North America, and observations of PPPs in action (such as schools and roads). No prior major studies have compared the UK and USA when it comes to the development and operation of PPPs, and this book fills a gap in the literature, addressing a number of key questions, including: How do politics affect PPPs? How do key players in the PPP process define project success, determine the merits and drawbacks of the initiative, and deal with controversial elements of the scheme such as value for money and risk transfer? The result is a volume that offers practical advice for the future development of PPPs in the UK.
The collection of papers brings out the complexities in PPP in terms of types, conceptualization, structure, institutions, and financing. It covers a broad sweep ranging from infrastructure to services and utilities; and from global to Indian states. The methodology is primarily empirical but the thrust is on conceptualization of PPP in its various forms and frameworks. PPP is still a practitioner’s field but is growing in size and significance; and as a solution to failures of public system and the consequent privatization. It is a major attraction to policy makers and funding agencies given its middle-of-the-road approach. It is likely to gain currency, but it is important that we get deeper understandings of this form before we place more faith in this. The papers in this book, selected from a conference on PPP held at the Indian Institute of Management Bangalore in 2008, raise several important conceptual issues and seek to address some of them.
In The Human Right to Water in Latin America, Anna Berti Suman investigates the development of the right to water and of water law in the Latin American context. By examining the significance of Latin American constitutional evolution, doctrine, and jurisprudence, the author illustrates the Latin American contribution in stimulating the social, political, and economic debate on the right to water, regionally and worldwide. Through an overview on the right to water in Latin American constitutions and of the main Latin American water management systems, Suman argues that an analysis of the right to water has to take account of its application in specific contexts. The intrinsic connection between the right to water and the role of the private sector is examined through topical insights into the highly privatized Chilean water services. In the conclusion, the relevance of the lessons learnt from the Latin American experience for the global debate on the right to water is convincingly proved.
The Latin American Economic Outlook 2018: Rethinking Institutions for Development focuses on how institutions can underpin the foundations of a long period of sustained and inclusive growth and increased well-being. The report begins with an overview of the main macroeconomic challenges ...