Private sector participation

The participation of the private sector in delivery of water supplies, irrigation and wastewater services has attracted much attention as a solution to systemic problems of service delivery. The basis for its advocacy is the recognition that private commercial companies tend to operate services with greater efficiency and less waste than government-run utilities, while managing to recover their costs. The level of development and the suitability of private sector institutions in different settings will strongly influence the form of public-private partnerships. Options are wide-ranging, from minimum private sector involvement, which could consist of contracting out the management of certain major installations; to full divestiture to autonomous water companies of responsibility for capital investment, operations, and commercial risk. (See Chapter 13, Public-private partnerships.)