The Welfare Effects of Private Sector Participation in Guinea's Urban Water Supply
In 1989 the government of Guinea enacted far-reaching reform of its water sector, which had been dominated by a poorly run public agency. The government signed a lease contract for operations and maintenance with a private operator, making a separate public enterprise responsible for ownership of as...
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| Format: | Publications & Research |
| Language: | en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://hdl.handle.net/10986/21455 |
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okr-10986-214552021-04-23T14:04:02Z The Welfare Effects of Private Sector Participation in Guinea's Urban Water Supply Clarke, George Menard, Claude Zuluaga, Ana Maria water supply private sector participation privatization of public enterprises performance indicators collection activities water quality water service connections productivity cost-benefit analysis water metering revenue sources water demand water consumption benefit analysis bilateral donors bill collection boreholes capital formation cash flow connection charges construction consumer protection cost of water cubic meter cubic meter of water cubic meters cut off daily water production debt domestic users drinking water economic motivation economic situation employment expenditures exploitation health problems households income intermediate inputs intermediate inputs investment planning investment project maintenance costs marginal cost natural resources number of connections number of people with access ownership of assets performance indicators piped water pipeline pipelines price of water private operator private participation productivity public ownership public utilities public water public works quantity of water rainfall raw water reservoirs service quality sewerage system structural adjustment urban water urban water supply wages water distribution water production water quality water sales water sector water supply system water system water systems water tariffs water utilities welfare effects wells In 1989 the government of Guinea enacted far-reaching reform of its water sector, which had been dominated by a poorly run public agency. The government signed a lease contract for operations and maintenance with a private operator, making a separate public enterprise responsible for ownership of assets and investment. Although based on a successful model that had operated in Cote d'Ivoire for nearly 30 years, the reform had many highly innovative features. It is being transplanted to several other developing countries, so the authors evaluate its successes and failures in the early years of reform. They present standard performance measures and results from a cost-benefit analysis to assess reform's net effect on various stakeholders in the sector. They conclude that, compared with what might have been expected under continued public ownership, reform benefited consumers, the government, and, to a lesser extent, the foreign owners or the private operator. Most sector performance indicators improved, but some problems remain. The three most troublesome areas are water that is unaccounted for (there are many illegal connections and the quality of infrastructure is poor), poor collection rates, and high prices. The weak institutional environment makes it difficult to improve collection rates, but the government could take some steps to correct the problem. To begin with, it could pay its own bills on time. Also, the legislature could authorize the collection of unpaid bills from private individuals. 2015-02-13T19:36:53Z 2015-02-13T19:36:53Z 2000-06 http://hdl.handle.net/10986/21455 en_US Policy Research Working Paper;No. 2361 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Guinea |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
water supply private sector participation privatization of public enterprises performance indicators collection activities water quality water service connections productivity cost-benefit analysis water metering revenue sources water demand water consumption benefit analysis bilateral donors bill collection boreholes capital formation cash flow connection charges construction consumer protection cost of water cubic meter cubic meter of water cubic meters cut off daily water production debt domestic users drinking water economic motivation economic situation employment expenditures exploitation health problems households income intermediate inputs intermediate inputs investment planning investment project maintenance costs marginal cost natural resources number of connections number of people with access ownership of assets performance indicators piped water pipeline pipelines price of water private operator private participation productivity public ownership public utilities public water public works quantity of water rainfall raw water reservoirs service quality sewerage system structural adjustment urban water urban water supply wages water distribution water production water quality water sales water sector water supply system water system water systems water tariffs water utilities welfare effects wells |
| spellingShingle |
water supply private sector participation privatization of public enterprises performance indicators collection activities water quality water service connections productivity cost-benefit analysis water metering revenue sources water demand water consumption benefit analysis bilateral donors bill collection boreholes capital formation cash flow connection charges construction consumer protection cost of water cubic meter cubic meter of water cubic meters cut off daily water production debt domestic users drinking water economic motivation economic situation employment expenditures exploitation health problems households income intermediate inputs intermediate inputs investment planning investment project maintenance costs marginal cost natural resources number of connections number of people with access ownership of assets performance indicators piped water pipeline pipelines price of water private operator private participation productivity public ownership public utilities public water public works quantity of water rainfall raw water reservoirs service quality sewerage system structural adjustment urban water urban water supply wages water distribution water production water quality water sales water sector water supply system water system water systems water tariffs water utilities welfare effects wells Clarke, George Menard, Claude Zuluaga, Ana Maria The Welfare Effects of Private Sector Participation in Guinea's Urban Water Supply |
| geographic_facet |
Africa Guinea |
| relation |
Policy Research Working Paper;No. 2361 |
| description |
In 1989 the government of Guinea enacted far-reaching reform of its water sector, which had been dominated by a poorly run public agency. The government signed a lease contract for operations and maintenance with a private operator, making a separate public enterprise responsible for ownership of assets and investment. Although based on a successful model that had operated in Cote d'Ivoire for nearly 30 years, the reform had many highly innovative features. It is being transplanted to several other developing countries, so the authors evaluate its successes and failures in the early years of reform. They present standard performance measures and results from a cost-benefit analysis to assess reform's net effect on various stakeholders in the sector. They conclude that, compared with what might have been expected under continued public ownership, reform benefited consumers, the government, and, to a lesser extent, the foreign owners or the private operator. Most sector performance indicators improved, but some problems remain. The three most troublesome areas are water that is unaccounted for (there are many illegal connections and the quality of infrastructure is poor), poor collection rates, and high prices. The weak institutional environment makes it difficult to improve collection rates, but the government could take some steps to correct the problem. To begin with, it could pay its own bills on time. Also, the legislature could authorize the collection of unpaid bills from private individuals. |
| format |
Publications & Research |
| author |
Clarke, George Menard, Claude Zuluaga, Ana Maria |
| author_facet |
Clarke, George Menard, Claude Zuluaga, Ana Maria |
| author_sort |
Clarke, George |
| title |
The Welfare Effects of Private Sector Participation in Guinea's Urban Water Supply |
| title_short |
The Welfare Effects of Private Sector Participation in Guinea's Urban Water Supply |
| title_full |
The Welfare Effects of Private Sector Participation in Guinea's Urban Water Supply |
| title_fullStr |
The Welfare Effects of Private Sector Participation in Guinea's Urban Water Supply |
| title_full_unstemmed |
The Welfare Effects of Private Sector Participation in Guinea's Urban Water Supply |
| title_sort |
welfare effects of private sector participation in guinea's urban water supply |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://hdl.handle.net/10986/21455 |
| _version_ |
1764448312451137536 |