IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The Impact of Institutional Frameworks on Private Sector Participation in Water Supply and Sanitation: The case of the management contract for water and wastewater services in the Amman Governorate, Jordan

Listed author(s):
  • Steiner, Sylvia M.
Registered author(s):

    This research examines the impact of institutional frameworks on the performance of a private sector participation (PSP) arrangement in the water sector. The research takes place within the context of a development debate and practice, which identifies water as a key poverty issue in a substantial part of the developing countries, which advocates private sector participation as a remedy to inadequate water management and which acknowledges good governance as a crucial requirement for development. Nevertheless, few studies have scrutinized the impact of governance and institutions on the outcome of PSP arrangements in the water sector. Most research on the performance of PSP arrangements has examined exogenous and endogenous determinants, such as the price mechanism and the property rights allocation, but these factors proved unsatisfactory as explaining variables in the context of natural resource management. To contribute to filling a gap in research this study aims at evaluating the impact of institutional frameworks on the outcome of private sector participation in water supply and sanitation through a case study of the Management Contract for Water and Wastewater Service in the Amman Governorate, Jordan. The research takes into account the specific institutional framework for the mentioned arrangement in Amman, which is comprised of the national judicial and political institutions, the specific regulatory institutions as well as relevant international institutions. The specific objective of this study is to show how the institutional framework of a transaction affects regulatory processes by abating and amplifying the potential for opportunistic behavior of the contracting parties, and thereby affecting the performance of a privately operated water utility. The examination of the institutional framework of the Amman Management Contract revealed that mainly judicial and international institutions and specific contract rules were constraining the discretion of the contracting parties. Political checks and balances were insufficiently established and the regulatory institutions of the water sector were set up in an improper way. The field study discovered that the resulting discretionary power of certain actors was used opportunistically, which had a detrimental effect on the outcome of the PSP arrangement. Nevertheless the overall performance of the arrangement was good from which the general insight was drawn that regulatory credibility may be developed even in unpropitious environments.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Institut fuer Entwicklungsforschung und Entwicklungspolitik, Ruhr-Universitaet Bochum in its series IEE Working Papers with number 187.

    in new window

    Length: 89 pages
    Date of creation: 2008
    Handle: RePEc:bom:ieewps:187
    Contact details of provider: Postal:
    Institute of Development Research and Development Policy, Ruhr University Bochum, Universitaetsstr. 150, D-44801 Bochum, Germany

    Phone: +49.234.32-22418
    Fax: +49.234.3214-294
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Claude Ménard & Stéphane Saussier, 2000. "Contractual Choice and Performance the Case of Water Supply in France," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 385-404.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bom:ieewps:187. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dorothee Sensen)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.