Region: Latin America and Caribbean
Country: Global / Non-Specific
Sectors: Water and Sanitation
Keywords: Licensing
DocumentLink(s):
Document Summary:
The 1990s saw a big drive to increase private sector participation in water services especially in Latin America. While there is currently less enthusiasm for the use of concessions and other public-private partnerships (PPPs), it is still instructive to inquire as to why certain partnerships succeeded where others did not. The case of a water concession in the province of Salta, Argentina provides an example of a successful PPP that survived despite its location in a poor province and a severe economic crisis.
Document Details:
This paper posits that the Salta Water PPP’s longevity is at least in part due to the spirit of cooperation between various levels of the government and the private operator. That cooperation is embodied by three contributing factors including: coordination across government levels and ministries, practical measures to extend service to the poor and a flexible contract. Stable financing from the Provincial Government was another key factor. Most notable is that this approach is in direct contrast to the 1990s trend where reforms focused on improving sector efficiency and reducing the drain on public resources. The use of a local private operator instead of a large international firm is also of interest. These lessons can be applied to future PPP schemes or other interventions in the water sector.
Updated: May 3, 2021