Sending the Right Signals to Utilities in Chile
During the 1980s and 1990s the Chilean water and sanitation sector underwent deep reforms so that private capital could finance the huge investments needed to achieve universal ser vice. The regulatory framework put into place cleared the way for massive private equity. But users have also paid the price of transforming the heavily subsidized sector into a self-sustaining industry able to provide universal coverage. This Note examines key features of the new regulatory scheme that have contributed to the sustainability of
the reforms: a phased approach, an efficient pricing policy and methodology, and expert panels to deal with conflict resolution.
For more information about this sector, please visit Public–Private Partnerships in Water and Sanitation.