The water services of Paris was remunicipalised in January 2010. The operations of the private companies (Suez and Veolia) were transformed into a single public operator, Eau de Paris. In her article Le Strat argues that public management has significant advantages, such transparency and reinvestment of surpluses. While she notes it is too soon to evaluate comprehensively the remunicipalisation, she concludes that the advantages of public management are already visible: the big cost savings achieved through the reform is fully reinvested in improving the water services. According to Le Strat, 'these initial profits are an estimated 35 million euros per annum, if not more'.
Thursday, July 1, 2010