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

By PPIAF, World Bank

'Approaches to non-public Participation in Water companies' is an informative toolkit that gives techniques for the layout of rules to facilitate the supply of fine caliber water and sanitation providers to the negative. It highlights the necessity for price lists, funding, stakeholder session, and regulatory guidelines to handle the affordability and sustainability of these providers. designated to an viewers that comes with govt advisors in addition to experts, legal professionals, and donors, the toolkit builds on earlier international adventure in inner most participation in water and sanitation provide. constructing state governments and people drawn to inner most participation in water and sanitation offer will locate this toolkit a useful source.

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Additional resources for Approaches to Private Participation in Water Services: A Toolkit

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Planning the process of introducing private participation • Designing the details of the arrangement. Work on service standards and tariffs, risk, and stakeholder views comes together to define the responsibilities the government intends to assign to the operator and how the relationship will be managed. At the end of this stage, laws and contracts embodying the proposed arrangements may be drafted, and when necessary, bodies to implement the arrangement created. • Selecting the operator. The government tries to attract potential operators, selecting the operator that offers the best combination of technical skills and cost to fit the local needs and circumstances.

The difference between them is technical: under a lease, the operator retains revenue collected from customers and makes a specified lease payment to the contracting authority, which the authority can use to pay for investment. Under an affermage, the operator and contracting authority share revenue from customers. The operator pays the contracting authority an affermage fee, which varies according to demand and customer tariffs, and retains the remaining revenue. Under both affermages and leases, the operator’s profits depend on the utility’s sales and costs, which typically gives the operator incentive to improve operating efficiency and increase sales.

A disadvantage of employing different advisers at different stages is that much of the work done in the early stages can be lost in the transition to a new advisor. In practice, the knowledge and understanding gained earlier in the transaction can seldom be fully embodied in the adviser’s reports. More important, the success of the transaction depends on policy choices. Advisers who are not responsible for the final outcome may not pay sufficient attention to the requirements of bidders, reducing the usefulness of their advice.

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