Public Private Partnerships for Urban Water Utilities

Philippe Marin

Description

'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.

Informations

• Publié par: world-bank-publications
• Publié le: 22 septembre 2009
• Nombre de lectures: 16
• EAN13: 9780821379578
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

TRENDS AND POLICY OPTIONS No. 8
HELPING TO
ELIMINATE POVERTY
THROUGH PRIVATE
INVOLVEMENT IN
INFRASTRUCTURE
Public-Private Partnerships
for Urban Water Utilities
A Review of Experiences in
Developing Countries
Philippe MarinPublic-Private
Partnerships
for Urban Water
UtilitiesTRENDS AND POLICY OPTIONS No. 8
HELPING T O
ELIMINATE POVERTY
THROUGH PRIVATE
INVOLVEMENT IN
INFRASTRUCTURE
Public-Private
Partnerships
for Urban Water
Utilities
A Review of Experiences in
Developing Countries
Philippe Marin© 2009 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
E-mail: [e-mail]
All rights reserved
1 2 3 4 12 11 10 09
This volume is a product of the staff of the International Bank for Reconstruction and Devel-
opment / The World Bank. The fi ndings, interpretations, and conclusions expressed in this
volume do not necessarily refl ect the views of the Executive Directors of The World Bank or
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ISBN 978-0-8213-7956-1
eISBN: 978-0-8213-7957-8
DOI: 10.1596/978-0-8213-7956-1
Library of Congress Cataloging-in-Publication Data
Marin, Philippe, 1965-
Public-private partnerships for urban water utilities : a review of experiences in developing
countries / Philippe Marin.
p. cm.
“February 2009.”
ISBN 978-0-8213-7956-1 (pbk.) -- ISBN 978-0-8213-7957-8 (e-book)
1. Water utilities—Developing countries. 2. Public-private sector cooperation—Developing
countries. I. Title.
HD4465.D44M37 2009
363.6’1091724--dc22
2009019190
Cover: Naylor Design, Inc.CONTENTS
FOREWORD xi
ACKNOWLEDGMENTS xiii
ABOUT THE AUTHOR xv
ABBREVIATIONS xvi
OVERVIEW 1
Growth of Water PPPs since 1990 2
Performance of Water PPP Projects 2
Key Findings 6
Looking Forward 8
Toward a More Balanced Debate 10
1. INTRODUCTION 13
2. EVOLUTION OF WATER PPPs IN DEVELOPING COUNTRIES 17
The Water Sector in the 1990s 18
Private Financing of Water Infrastructure 19
Evolution of the Water PPP Market since 1990 20
vEarly Termination and Expiration of PPP Projects 26
New Operators 29
Conclusions from Trend Analysis 36
3. PERFORMANCE AND IMPACT OF WATER PPP PROJECTS 39
Evidence from the Literature 40
Access 45
Quality of Service 68
Operational Effi ciency 75
Tariffs 107
Overall Performance of PPP Projects 116
4. TOWARD MORE SUSTAINABLE WATER PPPs 123
Lessons for More Effi cient and Sustainable Water PPPs 123
A New Generation of PPPs for Urban Water Utilities 138
Time to Rebalance the Debate 145
APPENDIXES
A. Water PPPs Whose Performance Was Reviewed
under This Study 149
B. New Connections and Increased Access in
36 Large PPP Projects 155
BIBLIOGRAPHY 159
INDEX 177
BOXESboxes
2.1 Putting in Place a Modern Regulatory Framework:
The 1989 Water Privatization in England and Wales 20
2.2 New Private Water Operators from Developing Countries 30
3.1 Coverage Ratio: The Challenge of Estimating an
Apparently Simple Indicator 41
3.2 Using Subsidized Water Connection Programs to
Expand Access in Sub-Saharan Africa 61
vi Contents3.3 Introducing Special Incentives for Effi ciency in
Affermages in Western Africa 82
3.4 The Concept of the Economically Optimal Level of
Leakage: Illustration from Chile 85
3.5 Reducing Water Losses by Combining a Management
Contract with Large Rehabilitation Work in Amman, Jordan 89
3.6 The Management Contract: Remarkable Success in
Improving Bill Collection in Yerevan, Armenia 95
3.7 Using a Management Contract to Carry Out a
Complete Corporate Reorganization of the Water
Utility in Johannesburg, South Africa 101
3.8 Raising the Water Tariff While Introducing a Private
Operator in Guyana 108
3.9 Multiple Tariff Renegotiations and Sharp Increases
for Customers: The Concession in Greater Buenos Aires,
Argentina 113
3.10 A Snapshot of Successful Urban Water PPPs in
Developing and Transition Countries 120
4.1 How Private Operators Helped Foster Effi cient Public
Investment in Affermages in Senegal and Niger 144
FIGURES
2.1 Water Utility PPPs Awarded and Urban Populations
Served in Developing Countries, by Region, 1991–2000 23
2.2 W
Served in Developing Countries, by Region, 1991–2007 24
2.3 Status of Water Utility PPP Projects—Active, Expired,
and Terminated, by Region, 2007 25
2.4 Urban Populations Served by Private Water Supply
Operators in Developing Countries, by Country
of Origin, 1991–2007 29
2.5 International Operators in Water Utility PPPs in
Developing Countries, 1991–2007 35
3.1 Increases in Coverage under Five Concessions Compared
with the National Increase in Argentina 46
Contents vii3.2 Increases in Water Supply Coverage under Private
Operators Compared with That of Public Utilities and
with the National Urban Average in Colombia 53
3.3 Evolution of Water Supply Coverage under PPPs in
Manila, the Philippines, 1997–2006 57
3.4 Evolution of Household Water Supply Coverage
under PPPs in Sub-Saharan Africa 59
3.5 Evolution of Service Continuity in Selected PPPs in Colombia 70
3.6 Gains in Service Continuity under 12 Management
Contracts 72
3.7 Evolution of Water Losses under Eight PPPs, by NRW
Level and Losses per Connections in Colombia 78
3.8 Water Losses under Private Operators and Public Utilities,
by NRW Level in Morocco 79
3.9 Evolution of Water Losses under Private Operators and
Public Utilities, by Connections in Morocco 80
3.10 Water Losses under Eight Long-Term PPPs, by NRW
Level in Sub-Saharan Africa 80
3.11 Evolution of Water Losses under 14 PPPs, by NRW
Level in Latin America 83
3.12 Water Losses under Seven PPPs, by NRW Level
in Southeast Asia 86
3.13 Water Losses under 14 Management Contracts,
by NRW Level 86
3.14 Increases in Bill Collection Ratio under PPPs
in Latin America 91
3.15 Improvements in the Bill Collection Ratio under
15 Management Contracts 94
3.16 Evolution of the Labor Productivity Ratio for
17 Large PPPs 97
3.17 Employment Reduction Associated with Implementation
of 10 Large PPPs in Latin America 98
3.18 Effi ciency Gains under Leases-Affermages in Cartagena,
Colombia and Senegal 104
viii Contents