Privatisation Corinne Waelti seecon international gmbh Privatisation Find

Privatisation Corinne Waelti, seecon international gmbh Privatisation

Find this presentation and more on: www. ssswm. info. Copyright & Disclaimer Copy it, adapt it, use it – but acknowledge the source! Copyright Included in the SSWM Toolbox are materials from various organisations and sources. Those materials are open source. Following the opensource concept for capacity building and non-profit use, copying and adapting is allowed provided proper acknowledgement of the source is made (see below). The publication of these materials in the SSWM Toolbox does not alter any existing copyrights. Material published in the SSWM Toolbox for the first time follows the same open-source concept, with all rights remaining with the original authors or producing organisations. To view an official copy of the Creative Commons Attribution Works 3. 0 Unported License we build upon, visit http: //creativecommons. org/licenses/by/3. 0. This agreement officially states that: You are free to: • Share - to copy, distribute and transmit this document • Remix - to adapt this document. We would appreciate receiving a copy of any changes that you have made to improve this document. Under the following conditions: • Attribution: You must always give the original authors or publishing agencies credit for the document or picture you are using. Disclaimer The contents of the SSWM Toolbox reflect the opinions of the respective authors and not necessarily the official opinion of the funding or supporting partner organisations. Depending on the initial situations and respective local circumstances, there is no guarantee that single measures described in the toolbox will make the local water and sanitation system more sustainable. The main aim of the SSWM Toolbox is to be a reference tool to provide ideas for improving the local water and sanitation situation in a sustainable manner. Results depend largely on the respective situation and the implementation and combination of the measures described. An in-depth analysis of respective advantages and disadvantages and the suitability of the measure is necessary in every single case. We do not assume any responsibility for and make no warranty with respect to the results that may be obtained from the use of the information provided. Privatisation

Find this presentation and more on: www. ssswm. info. Contents 1. Introduction 2. Implementation 3. Outcomes 4. Conclusion 5. References Privatisation 3

Find this presentation and more on: www. ssswm. info. 1. Introduction How to Improve and Expand Public Sanitation and Water Services? • • No connection to the water or sanitation system No constant supply Poor drinking water quality No proper wastewater treatment Problem: Unsatisfactory delivery of water and wastewater services Nationalisation Mixed Privatisation (e. g. Public Private Partnership) Possible institutional frameworks Privatisation 4

Find this presentation and more on: www. ssswm. info. 1. Introduction Problem Public as well as private operations cannot always guarantee water and sanitation services to all their residents. Why is it difficult to achieve local sanitation and water supply? • Water and sanitation services are critical to all consumers • There is often a natural monopoly • Investments are long-lived and irreversible which hinders investors Privatisation is seen as one possible solution to these problems. Privatisation 5

Find this presentation and more on: www. ssswm. info. 1. Introduction What is Privatisation? Privatisation is the process of transferring ownership or responsibilities from the public sector (government) to the private sector (e. g. business or non-profit organisation). Privatisation in the water and sanitation sector The private sector has always been involved in the water and sanitation sector in some form (e. g. construction contracts in large urban supplies or informal provision of water in unserved areas). However, a new role is currently being shaped due to globalisation, leading to increased importance of private actors. Adapted from: INWRDAM (2010) Privatisation 6

Find this presentation and more on: www. ssswm. info. 2. Implementation Different Privatisation Models Responsibility of private party Service contract / Buying in Single function contract Management contract Operation & maintenance (O&M) Build-Operate-Transfer (BOT) /Build-Operate-Own (BOO) Construction of infrastructure Lease O&M; sometimes asset renewals Concession Capital investment; O&M Partial divestiture Joint venture with private sector Full divestiture Capital investment; O&M; revenue collection Short-term Time scale of contract Privatisation model Long-term Adapted from: REES (2008) Privatisation 7

Find this presentation and more on: www. ssswm. info. 2. Implementation The Implementation Process Implementing a privatisation follows four steps: Developing the policy Designing the details of the arrangement Selecting the operator Managing the arrangement The time requirement for these steps differs according to the arrangement proposed and the already existent laws supporting or hindering the privatisation. Adapted from: THE WORLD BANK (2010) Privatisation 8

Find this presentation and more on: www. ssswm. info. 3. Outcomes Advantages and Disadvantages Independence from the local government and strong incentives for being profitable may lead to: • More efficient operation • Fewer profitable opportunities are being missed • Often undermines local & national government capacities • Community is seen as recipient rather than contributor (profit is more important than people’s needs) • Government does often not know how to monitor private parties, which may lead to a lack of accountability May lead to conflicts with civil society Adapted from: GREEN (2003) & THE WORLD BANK (2006) Privatisation 9

Find this presentation and more on: www. ssswm. info. 4. Conclusion Applicability • Success depends on the laws supporting the process and on the arrangement proposed • Needs a serious private operator • Not useful for projects which result in fast technological changes, as it would be difficult to determine long-term standards Adapted from: APPP(2009) Privatisation 10

Find this presentation and more on: www. ssswm. info. 5. References APPP (Editor) (2009): A Step by Step Guide to Public-Private Partnerships (PPPs). Croatia: Agency for Public Private Partnerships. URL: www. javnanabava. hr/userdocsimages/userfiles/file/Razne%20 publikacije/Step%20 by%20 step%20 guide%20 to%20 PPP. pdf [Accessed: 30. 08. 2012] GREEN (Editor) (2003): Advocacy Guide to Private Sector Involvement in Water Services. London: Water. Aid and Tearfund. URL: www. tearfund. org/webdocs/Website/Campaigning/Policy%20 and%20 research/Advocacy%20 guide%20 to%20 private%20 sector%20 inv olvement%20 in%20 water%20 services. pdf[Accessed: 02. 09. 2010] INWRDAM (Editor) (2010): Public Private Partnership in Water and Sanitation Sector. Amman – Jordan: The Inter-Islamic Network on Water Resources Development and Management. URL: http: //www. inwrdam. org/page/342 [Accessed: 31. 08. 2010] REES (Editor) (2008): Regulation and Private Participation in the Water and Sanitation Sector. Stockholm: Global Water Partnership (GWP). URL: eagri. cz/public/eagri/file/30628/Regulation_and_Private_Participation_1_. pdf [Accessed: 02. 09. 2010] THE WORLD BANK (Editor) (2006): Approaches to Private Participation in Water Services. A Toolkit. Washington, DC: The International Bank for Reconstruction and Development/ The World Bank. URL: rru. worldbank. org/Documents/Toolkits/Water_Full. pdf [Accessed: 02. 09. 2010] Privatisation 11

“Linking up Sustainable Sanitation, Water Management & Agriculture” SSWM is an initiative supported by: Created by: Privatisation 12