1 / 11

Edouard Perard, Sciences-Po edouard.perard@sciences-po

Private Sector Participation and Regulatory Reform in Urban Water Supply: The Middle East and North African Experience. Edouard Perard, Sciences-Po edouard.perard@sciences-po.org OECD Experts’ Meeting on Access to Drinking Water and Sanitation in Africa Paris, December 1st, 2006

ezra-perry
Download Presentation

Edouard Perard, Sciences-Po edouard.perard@sciences-po

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Private Sector Participation and Regulatory Reform in Urban Water Supply:The Middle East and North African Experience Edouard Perard, Sciences-Po edouard.perard@sciences-po.org OECD Experts’ Meeting on Access to Drinking Water and Sanitation in Africa Paris, December 1st, 2006 Understanding Privatisation Policy: Political Economy and Welfare Effects A European Project Supported within the Sixth Framework Programme http://www.privatizationbarometer.net/upp

  2. Introduction: The scope of private sector participationin water supply in the world Source: Edouard Perard “The Future of Public-Private Partnerships in Water Supply”, Yale University Water-Health-Environment Seminar, February 2006. Based on data updated from Pinsent Masons 2006, PSIRU, literature review and direct interviews.

  3. The increase of private sector participationin water supply in urban areas Source: Based on IWE, Cranfield PPP Database, Franceys 2003.

  4. The importance of urban issuesin the Middle East and North African region

  5. The scope of private sector participationin water supply in the Middle East and North African region Source: E. Perard, based on data from PSIRU, Pinsent Masons 2006, Institutional communication of water operators, Press releases.

  6. Forms of private sector participationin water services in the Middle East and North African region

  7. Promising regulatory reforms in the water sector in Algeria • The management of water supply and sanitation has been rationalized and centralized with the creation in 2001 of two independent water supply and sanitation agencies. • Municipalities have the possibility to delegate water supply to financially independent public operators “régie publique” (2005). • Private sector participation was legalized as early as 1995. • The first management contract was awarded in 2005 for the water supply of Algiers. • The tariff structure has been reformed. Tariffs are now progressive, set locally, with cost recovery objectives. Water metering practices have increased.

  8. Decentralization trend and concession contracts in Morocco • The major water producer and distributor, the National Office of Potable Water (ONEP) is legally and financially independent and does not longer receive subsidies. • Recent decentralization trend: • The water law of 1995 creates River Basin Organizations. Legally and financially independent, their mission is to finance local water investments through users’ fees “redevance” and lending. • Since 2002, municipalities have the full responsibility of water supply and sanitation services. They can operate directly or under a "regie publique" contract or delegate to ONEP or delegate to the private sector. • The first concession, for Casablanca, was awarded in 1997 to Lydec. • Tariffs are progressive and set locally. The effective pricing of water is emphasized in the water law of 1995.

  9. Recent regulatory reforms in Egypt • Since 2004, all drinking water and sanitation entities of the country have been regrouped under one single Holding Company. • In practice, water supply administration in Egypt is highly centralized. • Operation and maintenance costs of water services are mainly funded by public sources. • Revenues cover only 40% of costs because of subsidies, high levels of leakage, and non-paying state customers. • Cost recovery problems and low tariffs discourage financial investors and private sector participation.

  10. Successful public management in Tunisia • In Tunisia, the water and sanitation sector is totally public and is managed by two independent government agencies. • Impressive performance: • Very low rate of unaccounted for water: 18.2% in 2004. • Tunisian cities have usually continuous water supply. • The bill collection rate is very high: over 99%. • However, water management in Tunisia is highly centralized and very much politicized. • Problems of low tariffs set nationally and of high level of cross subsidies among customers: 90% of users pay water below the real economic cost. • Moderate private sector participation has been recently introduced in sanitation through service contracts and a BOT contract in Tunis.

  11. Edouard Perard, Sciences-Po edouard.perard@sciences-po.org Understanding Privatisation Policy: Political Economy and Welfare Effects A European Project Supported within the Sixth Framework Programme http://www.privatizationbarometer.net/upp

More Related