Do Private Water Utility Operators Care about Regulatory Agencies in Developing Countries?
This paper shows that the creation of an independent regulatory agency is often not a necessary or sufficient condition to help attract private participation in the operation and financing of the water and sanitation sector in developing countries....
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/243991493226646565/Do-private-water-utility-operators-care-about-regulatory-agencies-in-developing-countries http://hdl.handle.net/10986/26484 |
| Summary: | This paper shows that the creation of an
independent regulatory agency is often not a necessary or
sufficient condition to help attract private participation
in the operation and financing of the water and sanitation
sector in developing countries. However, the odds of an
impact are significantly higher for Latin American and
Caribbean countries and, to a lesser extent, Eastern
European countries, than for any other region. Higher income
levels and higher prices are also correlated with higher
effectiveness of independent regulatory agencies in
attracting private sector financing. Analysis of the impact
on various types of public-private partnership contracts
shows that, at the margin, independent regulatory agencies
are irrelevant in general, for the contract choice, except
for greenfield projects, for which such agencies may be
counterproductive at the margin. |
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