Approaches to Private Participation in Water Services: A by PPIAF, World Bank

By PPIAF, World Bank

'Approaches to personal Participation in Water prone' is an informative toolkit that gives techniques for the layout of guidelines to facilitate the supply of excellent caliber water and sanitation companies to the negative. It highlights the necessity for price lists, funding, stakeholder session, and regulatory regulations to handle the affordability and sustainability of these prone. detailed to an viewers that incorporates govt advisors in addition to specialists, legal professionals, and donors, the toolkit builds on earlier international event in inner most participation in water and sanitation provide. constructing nation governments and people drawn to deepest participation in water and sanitation provide will locate this toolkit a useful source.

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Planning the process of introducing private participation 27 Skills required Transaction management Policy, economics, institutional Consultation, communication, social research Environmental ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Technical— engineering and operations Financial Legal ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ inputs to the financial model. And the technical consultants’ estimate of the human resources required to provide safe, efficient service will feed into the analysis of the likely staffing costs and retrenchment compensation.

Asset ownership typically rests with the government from a legal perspective, however, and rights to all the assets, including those created by the operator, typically revert to the government when the arrangement ends—often after 25 or 30 years. A divestiture, like a concession, gives the private operator full responsibility for operations, maintenance, and investment. But unlike a concession, under a divestiture legal ownership of the assets rests with the private operator. While the difference between a concession and a divestiture may appear large at first, the rights and obligations of the contracting authority and the operator can be Considering private participation similar.

The private provider is likely to retain as profits at least some of the benefits of improved operating performance. But the improvements can also allow lower tariffs for customers, reduced subsidies from taxpayers, or higher-quality services for the same level of tariffs and subsidies. Whether a private provider operates more efficiently than a publicly managed utility is likely to depend, however, on the details of the arrangement the govern- 3 4 Approaches to Private Participation in Water Services ment puts in place.

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