Abstract
The water and waste sector lags sadly behind other infrastructure sectors in
the private investment it receives, accounting for only 5%5 of the total
including energy, telecoms and transport. By the end of 2006 526 PSP projects
worth a cumulative total of $53 billion had been closed in the water and waste
sector in developing countries and a further amount in the developed
countries. In terms of numbers of people served, the private water sector
accounts for 10-12% of the world' s population in 2008, double the proportion
ten years ago and the share is expected to increase.
There has been an increasing number of reversals, especially in Latin America
and Africa. 53 PPI projects have been cancelled or were in distress, totalling
$16.4 billion by the end of 2006. 53% of cancellations were in Latin America
and 47% in Asia Pacific. The cancellations have not all been one sided, they
have been instigated either by governments, by popular opposition or by the
concessionaires. The increasing opposition and politicisation of water
privatisation should not be ignored because it will not go away.
Anti-privatisation activists have succeeded in forcing a number of reversals
of PSP contracts and opposition has been especially strident in Africa and
South America. Those in favour of privatisation tend to see water as an
economic proposition. Governments are concerned with their responsibility to
provide a service to the people and they accept that commercial profit may be
a part of this. It may also be more efficient and cheaper. Those who are
against privatisation hold the position that water is a basic human right,
that should be available to everyone, if necessary at no cost to the consumer.
Historically two French companies, Suez/Ondeo and Vivendi/Veolia and more
recently a third Saur/Bouygues, have been the global leaders in private water
and sanitation provision. With the advent of liberalisation and privatisation
in the energy markets a number of energy multinationals entered the water and
waste markets, primarily because they saw limits to investment opportunities
and profitability in their traditional industries. Ten years of experience and
hard knocks has encouraged all of them to reassess their priorities, and to
withdrawn from high risk markets or reduce their exposure. In some case they
have withdrawn form the water business entirely. RWE, which in five years
became the third largest water company in the world, and ENEL have both
announced that they are divesting most of their water interests to concentrate
on energy. A new group of national players and smaller private water companies
has emerged and the dominance of the large internationals is being eroded
around the edges, although they still remain very powerful.
Outline of the report
- This report provides a comprehensive overview of the global water sector
- The situation in each country regarding ownership and the regulation of
the market
- A global survey of water & waste deregulation
- Types of water & waste privatisation
- The reasons for liberalisation
- An extensive series of tables, charts and graphics are contained in the
report
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