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The Role of Private Sector Participation (PSP) for Sustainable Water Supply and Sanitation Sectors ― The Case of Latin America ― *
| Content Provider | Semantic Scholar |
|---|---|
| Author | Furukawa, Shigeki |
| Copyright Year | 2005 |
| Abstract | In the world, more than 1.1 billion out of 6 billion people are without access to safe drinking water. Most of them live in developing countries. 80% of their diseases are caused by poor sanitation system. For the purpose of improving this situation, the UN Millennium Development Goals (2000) set the target,“halve by 2015 the proportion of people without sustainable access to safe drinking water and basic sanitation.”In order to attain the goal, water and sanitation sectors must be sustainable; and it would be effective for governments of developing countries to set a long-term vision and concrete targets for the sectors. Private sector participation (PSP) can be useful to ensure the sustainability of the sectors. In considering PSP, it is worth emphasizing two types of policy sequences. The first is sequence of improving financial aspects of service providers. For example, service providers must first implement self-efforts, such as improvement of user charge collection and unaccounted for water, before raising tariff. The second is related to sequence of introducing PSP in accordance with countries' circumstances. More concretely, governments should select appropriate PSP options ranging from moderate ones such as service contract to radical ones including asset sale, depending on their countries' political, economic, social and institutional situations about PSP. The results of Contingent Valuation Method (CVM) Survey conducted in Iqitos City (Peru) show that affordability-to-pay (ATP) of the residents for water and sanitation services was almost equivalent to their current average payment; and that their willingness-to-pay (WTP) was about twice as high as their current payment. It seems difficult to raise the tariff level in view of payment ability of the users in the City in spite of the high WTP. Before imposing financial burden on the users, the supplier in the City should improve its tariff collection rate, unaccounted for water rate, recurrent cost rate, etc. Regarding water and sanitation sectors, radical privatization approach may not be appropriate. Public service suppliers must first make best efforts in solving their own problems. In parallel, national governments should set up institutions and regulations and long-term support policy such as subsidy. If these important changes are made, governments should select appropriate PSP options and steadily realize gains of PSP . Such policy approach is considered to contribute to sustainability of water and sanitation sectors in Latain American countries. |
| Starting Page | 1 |
| Ending Page | 58 |
| Page Count | 58 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.bvsde.paho.org/bvsacd/cd67/report10_1.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
