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Private sector participation in urban water and sanitation: Realising social and environmental objectives in developing countries

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  • Nick Johnstone
  • Libby Wood
  • Robert Hearne

Abstract

There has been a large increase in private sector participation (PSP) in the urban water supply and sanitation (WSS) sector in recent years. However, even with increased PSP, public authorities will still have to: ensure that the service providers do not use their market power to exploit customers; internalise public health and environmental externalities; provide mechanisms whereby water consumption is sustainable and allocated efficiently between alternative uses; and stand as a guarantor of a level of service provision that is consistent with a basic standard of living. While there is considerable literature addressing the first of these four issues, the latter three are rather less adequately addressed. Through a review of a number of case studies (Abidjan, Buenos Aires/Cordoba, Mexico City and Manila), this paper provides an overview of the issues involved and some of the mechanisms available to the authorities responsible for the regulation of the sector.

Suggested Citation

  • Nick Johnstone & Libby Wood & Robert Hearne, 1999. "Private sector participation in urban water and sanitation: Realising social and environmental objectives in developing countries," Natural Resources Forum, Blackwell Publishing, vol. 23(4), pages 287-302, November.
    • Handle: RePEc:wly:natres:v:23:y:1999:i:4:p:287-302
    DOI: 10.1111/j.1477-8947.1999.tb00917.x
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