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Uncovering the Drivers of Utility Performance : Lessons from Latin America and the Caribbean on the Role of the Private Sector, Regulation, and Governance in the Power, Water, and Telecommunication Sectors
[Factores determinantes del desempeño de las empresas de suministro de servicios básicos : Lecciones de América Latina y el Caribe y el papel del sector privado, la regulación y estructuras de gestión en los sectores de electricidad, agua y telecomunicaciones - Resumen ejecutivo (Vol. 2)]

Author

Listed:
  • Luis A. Andrés
  • Jordan Schwartz
  • J. Luis Guasch

Abstract

This book conducts a micro-level analysis of various determinants of infrastructure sector performance that affect development. This book focuses on the distribution segment of three basic infrastructure services: electricity, water and sanitation, and fixed telecommunications. This books aims to answer four main sets of questions: what are the main performance trends in the region, and how heterogeneous are they?; how does the performance of state-owned and private utilities differ?; how does the institutional design of regulatory agencies affect sector performance?; and what management mechanisms create incentives for improved performance?. This book begins by describing the main elements that characterize sector performance, defined as the delivery of reliable, affordable service that complies with certain quality standards. It focuses on the relationship between sector performance and the following determinants: private sector participation, regulatory agencies, and corporate governance. It also examines related aspects, such as contract design, market structure, and, for telecommunications, market competition. This book first explains the dynamics of utility performance and the interactions between key internal variables and utility performance in each sector. The book is organized as follows: chapter one is introduction. Chapter two outlines changes in the electricity distribution, water and sanitation, and fixed telecommunications sectors in the Latin America and the Caribbean (LAC) region over the past 15 years. This chapter tells multiple stories of the substantial improvement in these sectors and fills in knowledge gaps by benchmarking utility performance at the regional, country, and utility levels. Chapter three synthesizes the impact private sector participation has had on electricity distribution, water and sewerage, and fixed-line telecommunications. This chapter also identifies whether private sector participation characteristics such as the sale method; investor nationality; and award criterion affect performance. Chapter four explores the institutional design of regulatory agencies and the link between regulatory governance and sector performance. Chapter five assesses the governance of state-owned enterprises (SOEs) in infrastructure, based on survey results from 45 SOEs in the water and electricity distribution sector of LAC. Chapters six examines other potential determinants for sector performance, including corruption, cost recovery, contract arrangements, and competition. Chapter seven summarizes the book s main results and describes the array of possibilities for moving forward.

Suggested Citation

  • Luis A. Andrés & Jordan Schwartz & J. Luis Guasch, 2013. "Uncovering the Drivers of Utility Performance : Lessons from Latin America and the Caribbean on the Role of the Private Sector, Regulation, and Governance in the Power, Water, and Telecommunication Se," World Bank Publications - Books, The World Bank Group, number 15774, December.
    • Handle: RePEc:wbk:wbpubs:15774
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    References listed on IDEAS

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    1. repec:idb:brikps:59818 is not listed on IDEAS
    2. Andres, Luis & Guasch, Jose Luis & Diop, Makhtar & Azumendi, Sebastian Lopez, 2007. "Assessing the governance of electricity regulatory agencies in the Latin American and the Caribbean region : a benchmarking analysis," Policy Research Working Paper Series 4380, The World Bank.
    3. J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications - Books, The World Bank Group, number 15024, December.
    4. Saal, David S & Parker, David, 2001. "Productivity and Price Performance in the Privatized Water and Sewerage Companies of England and Wales," Journal of Regulatory Economics, Springer, vol. 20(1), pages 61-90, July.
    5. Vivien Foster & José Luis Guasch & Luis Andrés & Thomas Haven, 2008. "The Impact of Private Sector Participation in Infrastructure: Lights, Shadows, and the Road Ahead," IDB Publications (Books), Inter-American Development Bank, number 59818, February.
    6. Ros, Agustin J, 1999. "Does Ownership or Competition Matter? The Effects of Telecommunications Reform on Network Expansion and Efficiency," Journal of Regulatory Economics, Springer, vol. 15(1), pages 65-92, January.
    7. World Bank, 2009. "Understanding Sector Performance : The Case of Utilities in Latin America and the Caribbean," World Bank Publications - Reports 3170, The World Bank Group.
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    2. Fleta-Asín, Jorge & Muñoz, Fernando, 2020. "How does risk transference to private partner impact on public-private partnerships’ success? Empirical evidence from developing economies," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    3. de Halleux, Morgane & Estache, Antonio & Serebrisky, Tomas, 2020. "Governance choices and policy outcomes in the Latin American and caribbean electricity sector," Utilities Policy, Elsevier, vol. 67(C).
    4. Andres, Luis A. & Bahuguna, Aroha, 2020. "Overcoming missing data bias in water utility indicators by using nested balanced panels," Utilities Policy, Elsevier, vol. 67(C).
    5. El-Haddad, Amirah, 2017. "Welfare gains from utility reforms in Egyptian telecommunications," Utilities Policy, Elsevier, vol. 45(C), pages 1-26.
    6. Salvador Bertomeu & Daniel Camos-Daurella & Antonio Estache, 2017. "Do Private Water Utilities Operators Care about Regulatory Agencies in Developing Countries ?," Working Papers ECARES ECARES 2017-18, ULB -- Universite Libre de Bruxelles.
    7. Irina Filatova & Liubov Nikolaichuk & Dokka Zakaev & Igor Ilin, 2021. "Public-Private Partnership as a Tool of Sustainable Development in the Oil-Refining Sector: Russian Case," Sustainability, MDPI, vol. 13(9), pages 1-23, May.
    8. Lisa Bagnoli & Salvador Bertomeu & Antonio Estache, 2020. "How does the Ownership of Electricity Distribution relate to Energy Poverty in Latin America and the Caribbean ?," Working Papers ECARES 2020-37, ULB -- Universite Libre de Bruxelles.
    9. Jordan Z Schwartz & Fernanda Ruiz-Nuñez & Jeff Chelsky, 2014. "Closing the Infrastructure Finance Gap: Addressing Risk," RBA Annual Conference Volume (Discontinued), in: Alexandra Heath & Matthew Read (ed.),Financial Flows and Infrastructure Financing, Reserve Bank of Australia.
    10. Fabre, Anaïs & Straub, Stéphane, 2019. "The Impact of Public-Private Partnerships (PPPs) in Infrastructure, Health and Education: A Review," TSE Working Papers 19-986, Toulouse School of Economics (TSE), revised Sep 2021.
    11. Independent Evaluation Group, 2016. "Financial Viability of the Electricity Sector in Developing Countries," World Bank Publications - Books, The World Bank Group, number 25174, December.
    12. Antonio Estache, 2014. "Infrastructure and Corruption: a Brief Survey," Working Papers ECARES ECARES 2014-37, ULB -- Universite Libre de Bruxelles.
    13. Bertoméu-Sánchez, Salvador & Camos, Daniel & Estache, Antonio, 2018. "Do economic regulatory agencies matter to private-sector involvement in water utilities in developing countries?," Utilities Policy, Elsevier, vol. 50(C), pages 153-163.

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