Sharing the Wealth: Privatization through Broad-Based Ownership Strategies

This report discusses ways in which the public and private sectors can cooperate in providing improved water and sanitation services. The return of cholera in 1991 to the Latin America and Caribbean region was only a symptom of the deep-seated problems and the fragility and inadequacy of publicly operated water supply and sanitation systems. Consequently, the agencies that operate these systems are entering a crucial phase of deciding whether they can greatly improve their operations while remaining in the public sector or whether they should seek increasing private sector financing and participation in both operations. This study consists of two chapters. The first analyzes the main problems of the public sector, explains the rationale behind private sector participation, and reviews an array of options for such participation. The second chapter highlights a case study of the Buenos Aires Concession--a large concession for the Greater Buenos Aires water supply and sewerage services awarded by the national government to a private consortium of foreign operators and local investors. The case study is an excellent example of how attention to the planning and contracting stages can ensure a successful transition from public to private management.Bell, Stuart W. is the author of 'Sharing the Wealth: Privatization through Broad-Based Ownership Strategies' with ISBN 9780821332306 and ISBN 0821332309.