Many organisations encourage developing countries to privatise water through some form of public-private partnership (PPP) or private sector participation (PSP). The alternative of a public sector water undertaking (PWU) is ignored, although public sector water undertakings are the providers of water and sanitation services for the great majority of the population in developed countries. Ignoring this option means that the main competitor to any of the private companies is being excluded.There have been problems with privatised management of water systems through all forms of PPPs, whether concessions, leases, management contracts, or build-operate-transfer (BOTs). Public authorities have been able to operate successful PWUs in transition and developing countries, as well as in developed countries.
Friday, February 2, 2001