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System And Process In Capital‐Intensive Privatization: A Comparative Case Study Of Municipal Wastewater Treatment Works

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  • John G. Heilman
  • Gerald W. Johnson

Abstract

Capital‐intensive privatization (CIP) is an option for infrastructure project development. Advocates claim that CIP generates cost savings through efficiencies inherent in the coordinated design, construction, and operation of facilities. The present paper assesses these claims in the field of municipal wastewater treatment facilities (WIWs). It presents case‐study results and aggregate data on seven of the first privatized WIWs, and on seven comparable grant‐funded facilities. The analysis relies on the concepts of system and process. It concludes that CIP changes the system of players and the processes through which they interact. In doing so, CIP generates efficiencies of time and cost in project design and construction. It also may change accountability mechanisms, trade efficiency off against accountability, and raise issues of compatibility with the nature of the state. These matters bear directly on the current debates over tax and budget policy generated by increased demands for services, limited resources, and deficit reduction mandates.

Suggested Citation

  • John G. Heilman & Gerald W. Johnson, 1989. "System And Process In Capital‐Intensive Privatization: A Comparative Case Study Of Municipal Wastewater Treatment Works," Review of Policy Research, Policy Studies Organization, vol. 8(3), pages 549-572, March.
    • Handle: RePEc:bla:revpol:v:8:y:1989:i:3:p:549-572
    DOI: 10.1111/j.1541-1338.1989.tb00979.x
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