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close this bookWater for Urban Areas (UNU, 2000, 243 p.)
close this folder7. The role of the private sector in the provision of water and wastewater services in urban areas
close this folderPreparing for a private sector venture
View the document(introduction...)
View the documentPre-contract analysis
View the documentChoosing among the options
View the documentMaking sure that the desired option is of interest to the private sector
View the documentFinding and contracting a suitable partner


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.