IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v31y2014icp107-113.html
   My bibliography  Save this article

Privatization of water-supply services in Saudi Arabia: A unique experience

Author

Listed:
  • Ouda, Omar K.M.
  • Al-Waked, Rafat F.
  • Alshehri, Abdulrahman A.

Abstract

Water-supply services worldwide experienced a wave of privatization over the last three decades, with majority of documented cases deemed failures. This paper reviews the Saudi water-supply service privatization initiative in the context of international privatization models and industry practices. The study shows that the Saudi model is unique in both structure and performance. It concludes that the model is a successful one to date and could be implemented in countries having a similar socio-economic structure. However, the long-term performance and sustainability of the model are inconclusive and need careful assessment based on financial and technical criteria.

Suggested Citation

  • Ouda, Omar K.M. & Al-Waked, Rafat F. & Alshehri, Abdulrahman A., 2014. "Privatization of water-supply services in Saudi Arabia: A unique experience," Utilities Policy, Elsevier, vol. 31(C), pages 107-113.
  • Handle: RePEc:eee:juipol:v:31:y:2014:i:c:p:107-113
    DOI: 10.1016/j.jup.2014.10.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178714000770
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jup.2014.10.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. World Bank, 2006. "Approaches to Private Participation in Water Services : A Toolkit," World Bank Publications - Books, The World Bank Group, number 6982, December.
    2. Walter, Matthias & Cullmann, Astrid & von Hirschhausen, Christian & Wand, Robert & Zschille, Michael, 2009. "Quo vadis efficiency analysis of water distribution? A comparative literature review," Utilities Policy, Elsevier, vol. 17(3-4), pages 225-232, September.
    3. Hailu, Degol & Osorio, Rafael Guerreiro & Tsukada, Raquel, 2012. "Privatization and Renationalization: What Went Wrong in Bolivia’s Water Sector?," World Development, Elsevier, vol. 40(12), pages 2564-2577.
    4. Estache, Antonio & Gomez-Lobo, Andres & Leipziger, Danny, 2001. "Utilities Privatization and the Poor: Lessons and Evidence from Latin America," World Development, Elsevier, vol. 29(7), pages 1179-1198, July.
    5. Janice A. Beecher, 2013. "What matters to performance? Structural and institutional dimensions of water utility governance," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(2), pages 150-173, March.
    6. Omar K.M. Ouda, 2014. "Water demand versus supply in Saudi Arabia: current and future challenges," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 30(2), pages 335-344, June.
    7. Omar K.M. Ouda, 2014. "Impacts of agricultural policy on irrigation water demand: a case study of Saudi Arabia," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 30(2), pages 282-292, June.
    8. Kikeri, Sunita & Kolo, Aishetu, 2005. "Privatization : trends and recent developments," Policy Research Working Paper Series 3765, The World Bank.
    9. Tan, Jeff, 2012. "The Pitfalls of Water Privatization: Failure and Reform in Malaysia," World Development, Elsevier, vol. 40(12), pages 2552-2563.
    10. Wang, Hongwei & Wu, Wenqing & Zheng, Shilin, 2011. "An econometric analysis of private sector participation in China’s urban water supply," Utilities Policy, Elsevier, vol. 19(3), pages 134-141.
    11. Philippe Marin, 2009. "Public-Private Partnerships for Urban Water Utilities : A Review of Experiences in Developing Countries," World Bank Publications - Books, The World Bank Group, number 2703, December.
    12. Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
    13. Birdsall, Nancy & Nellis, John, 2003. "Winners and Losers: Assessing the Distributional Impact of Privatization," World Development, Elsevier, vol. 31(10), pages 1617-1633, October.
    14. Trawick, Paul, 2003. "Against the Privatization of Water: An Indigenous Model for Improving Existing Laws and Successfully Governing the Commons," World Development, Elsevier, vol. 31(6), pages 977-996, June.
    15. Dore, Mohammed H. I. & Kushner, Joseph & Zumer, Klemen, 2004. "Privatization of water in the UK and France--What can we learn?," Utilities Policy, Elsevier, vol. 12(1), pages 41-50, March.
    16. Lee, Cassey, 2011. "Privatization, water access and affordability: Evidence from Malaysian household expenditure data," Economic Modelling, Elsevier, vol. 28(5), pages 2121-2128, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Surachman, Eko Nur & Perwitasari, Sevi Wening & Suhendra, Maman, 2022. "Stakeholder management mapping to improve public-private partnership success in emerging country water projects: Indonesia’s experience," Utilities Policy, Elsevier, vol. 78(C).
    2. Tawfik, Mohamed & Nassif, Marie-Helene & Mahjoub, O. & Mahmoud, A. E. D. & Kassab, G. & Alomair, M. & Hoogesteger, J., 2022. "Water reuse policy and institutional development in MENA: case studies from Egypt, Jordan, Lebanon, Saudi Arabia and Tunisia," IWMI Books, Reports H051738, International Water Management Institute.
    3. Goh, Kim Huat & See, Kok Fong, 2021. "Measuring the productivity growth of Malaysia's water sector: Implications for regulatory reform," Utilities Policy, Elsevier, vol. 71(C).
    4. Gazzeh, Karim & Abubakar, Ismaila Rimi, 2018. "Regional disparity in access to basic public services in Saudi Arabia: A sustainability challenge," Utilities Policy, Elsevier, vol. 52(C), pages 70-80.
    5. Curran, Franziska & Smart, Simon & Lacey, Justine & Greig, Chris & Lant, Paul, 2018. "Learning from experience in the water sector to improve access to energy services," Utilities Policy, Elsevier, vol. 51(C), pages 41-50.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massarutto, Antonio & Ermano, Paolo, 2013. "Drowned in an inch of water," Utilities Policy, Elsevier, vol. 24(C), pages 20-31.
    2. Estrin, Saul & Pelletier, Adeline, 2018. "Privatization in developing countries: what are the lessons of recent experience?," LSE Research Online Documents on Economics 87348, London School of Economics and Political Science, LSE Library.
    3. Ruiz-Villaverde, Alberto & González-Gómez, Francisco & J. Picazo- Tadeo, Andrés, 2015. "The privatisation of urban water services: theory and empirical evidence in the case of Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 31, pages 157-174.
    4. Massimiliano Agovino & Massimiliano Cerciello & Antonio Garofalo & Loris Landriani & Luigi Lepore, 2021. "Corporate governance and sustainability in water utilities. The effects of decorporatisation in the city of Naples, Italy," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 874-890, February.
    5. Hellwig, Michael & Polk, Andreas, 2021. "Do political links influence water prices? Determinants of water prices in Germany," Utilities Policy, Elsevier, vol. 70(C).
    6. Salazar-Adams, Alejandro, 2021. "The efficiency of post-reform water utilities in Mexico," Utilities Policy, Elsevier, vol. 68(C).
    7. Lazzarini,Sergio G., 2022. "The Right Privatization," Cambridge Books, Cambridge University Press, number 9781316519714.
    8. Antonio Estache & Caroline Philippe, 2012. "The Impact of Private Participation in Infrastructure in Developing Countries: Taking Stock of about 20 Years of Experience," Working Papers ECARES ECARES 2012-043, ULB -- Universite Libre de Bruxelles.
    9. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
    10. Peeter Peda & Giuseppe Grossi & Margo Liik, 2013. "Do ownership and size affect the performance of water utilities? Evidence from Estonian municipalities," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 237-259, May.
    11. Mikail Pehlivan & Nazan Susam, 2022. "Transformation of Water Services: Lessons Learned from Water Privatization in Multiple Countries," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 65(65), pages 129-160, June.
    12. Romano, Giulia & Molinos-Senante, María & Guerrini, Andrea, 2017. "Water utility efficiency assessment in Italy by accounting for service quality: An empirical investigation," Utilities Policy, Elsevier, vol. 45(C), pages 97-108.
    13. Estrin, Saul & Pelletier, Adeline, 2016. "Privatisation in Developing Countries: What Are the Lessons of Recent Experience?," IZA Discussion Papers 10297, Institute of Labor Economics (IZA).
    14. Vilanova, Mateus Ricardo Nogueira & Magalhães Filho, Paulo & Balestieri, José Antônio Perrella, 2015. "Performance measurement and indicators for water supply management: Review and international cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1-12.
    15. Swann Bommier & Cécile Renouard, 2014. "On Equity in India's Water Supply Public-Private Partnerships," Working Papers hal-01023795, HAL.
    16. Bako Kinga-Erzsebet & Fulop Arpad-Zoltan, 2017. "Profitability And Efficiency Analysis In Water And Sewerage Sector In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 96-102, August.
    17. Antonio Estache & Liam Wren-Lewis, 2009. "Toward a Theory of Regulation for Developing Countries: Following Jean-Jacques Laffont's Lead," Journal of Economic Literature, American Economic Association, vol. 47(3), pages 729-770, September.
    18. repec:hal:journl:hal-01023795 is not listed on IDEAS
    19. Independent Evaluation Group, 2010. "Water and Development : An Evaluation of World Bank Support, 1997-2007, Volume 1," World Bank Publications - Books, The World Bank Group, number 2485, December.
    20. Michael Zschille, 2014. "Marktstrukturen in der Trinkwasserversorgung," DIW Roundup: Politik im Fokus 43, DIW Berlin, German Institute for Economic Research.
    21. Michael Zschille, 2016. "Cost Structure and Economies of Scale in German Water Supply," Discussion Papers of DIW Berlin 1576, DIW Berlin, German Institute for Economic Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:31:y:2014:i:c:p:107-113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.