Water for Urban Areas (UNU, 2000, 243 p.): 7. The role of the private sector in the provision of water and wastewater services in urban areas: Preparing for a private sector venture: (introduction...)

Water for Urban Areas (UNU, 2000, 243 p.)

7. The role of the private sector in the provision of water and wastewater services in urban areas

Preparing for a private sector venture

		*(introduction...)*
		Pre-contract analysis
		Choosing among the options
		Making sure that the desired option is of interest to the private sector
		Finding and contracting a suitable partner

(introduction...)

Governments interested in seeking a partnership with the private sector will have to choose from the many options available. These options can be implemented on different scales, with different combinations of functional responsibilities, and with different forms of regulation. The quality of the process of designing and implementing a selected option can determine whether or not the option will succeed. The challenge is twofold: (a) to define and develop the best possible arrangement appropriate for local needs and conditions; and (b) to find a suitable private sector partner for this arrangement and obtain the best possible offer from that partner. To reduce the risk of failure and get the most appropriate deal, the process is suggested to proceed in stages: pre-contract analysis; narrowing the choice to one or a range of feasible options; making sure that the desired option is of interest to the private sector; and acquiring the private partner and contract start-up.