Jarmo J. Hukka

Public-Private Partnerships in Water and Sewerage Services: Privatization for Profit or Improvement of Service and Performance?

There is no empirical proof that private enterprises manage and operate facilities more efficiently than public ones. Instead of privatization, it is better to promote viable public-private partnerships and commercialization of services. The core businesses of water and sewage works should preferably be retained by a municipalityowned enterprise. In the selection of the mode(s) of water service implementation, one must consider the nature of the services, the long-term experiences, and transaction costs. The nature of water and sanitation service activity itself requires that long-term development should be considered in decision making. The institutional framework must be such that all parties benefit from cooperation. Whichever management or contract model is selected, the ownership of the utilities should preferably remain in the hands of municipalities whose decisions on services citizens should be able to influence through local democracy. The responsibility for arranging water services lies de facto with the public sector.

The Finnish Experience

Water and wastewater services in Finland are, according to international comparisons, exceptionally well organised. In Finland, as in industrialised countries in general, the public sector and particularly the municipalities have played a central role in the development of these services. Although municipalities are legally responsible for water and wastewater service provision, they do not have to produce these services themselves, and there are several alternatives for the ownership and operational management. There is no single model for how water and wastewater services should be organised—not even within a single country. Water and wastewater services should be looked at as multi-dimensional activities within a wider institutional context considering the roles of all stakeholders.1 1 This paper is based on several studies, especially on case studies produced by the European Union-funded projects PRINWASS (http://users.ox.ac.uk/∼prinwass/) and WaterTime (http://www.watertime.net/), the UNRISD project on private sector involvement in water supply as well as the recent doctoral dissertation of the first author (Pietilä, 2006).

Social and Economic Importance of Water Services in the Built Environment: Need for More Structured Thinking☆

Abstract Community water supply takes priority over other water use purposes worldwide. Investment in water and sanitation systems in developing economies brings a multitudeof economic and social benefits. Water infrastructure systems across the world will deteriorateunless substantially more rehabilitation is done. This paper presents a structured and hierarchical framework for sustained water services development consisting of institutions, provision, water infrastructure and production of services that hopefully create better understanding of how to develop our systems and services as part of the built environment for more sustained futures.

Revisiting private water proposals and concessions of the 1870 and 1880s in Finland

Abstract The paper questions the ethics of buying and reselling the concessions of water undertakings at the expense of consumer-owners. In Tampere, in 1866, an industrialist proposed a concession which would have provided him a good guaranteed return with the town assuming all risks. In Helsinki, in 1871, a concession of 75 years was signed with a private businessman. He did not even try to start operations but sold the concession further to a German company making a fortune. Due to the European-wide recession, the city bought back the concession. In 1885, the same entrepreneur got the horse-driven tram concession—tried this time to operate it but was unsuccessful. Some 110 years later several donors started to promote the idea of water concessions and other private operating contracts as a “new innovation.” By the early 21st century, it became clear that private water multinationals are not willing to take the risk of making such investments in developing and transition economies. Before making such strategic decisions cities should make proper feasibility studies and compare the pros and cons of various options.

Inadequacy of positivistic research to explain complexity of water management

The paper looks at alternative scientific research approaches and traditions related to Water Resources Management (WRM) and Water Supply and Sanitation (WSS) services. How can they explain the problem-oriented water governance challenges, and how do they apply to multi- and inter-disciplinary research? It is argued that the bias in favour of a positivistic approach and natural sciences in water research prevents adequate answers to wider water governance challenges and institutional and management issues. Water research should be expanded to include diverse multi-, pluri-, cross-, inter- and multi-disciplinary approaches as joint efforts, while individuals could be encouraged to seek transdisciplinarity.

Many Ps Needed for Sustainable Water Services Expansion of the Scope of Public–Private Partnerships

This research note discusses the commonly used concept of public-private partnerships (PPPs) promoted particularly by international financial bodies in water and sanitation services during the past few years. The article argues that the scope of PPPs, which now includes only private operators, should be expanded. The article proposes a related list of policies, principles, and practices with selected priorities for viable and sustainable water and sanitation services. They must be assessed in a long-term perspective rather than in a historical vacuum.

Service Failures of Rural Water Supply Systems in Ethiopia and Their Policy Implications

As the world is striving to improve water supply coverage, a significant number of rural communities are forced to turn back to unprotected sources due to service breakdowns of their water supply systems. Yet, these communities do not seem to receive the same attention as those building new systems. The purpose of this article is to reveal and diagnose the determinant factors of service failures and to propose mitigation measures to the rural water supply in Ethiopia. The study is conducted through a literature review and field discussions with experts (n = 48) and artisans (n = 35), who have been involved in the implementation, operation, and maintenance of the systems. Moreover, failed schemes (n = 20) were visited, and discussions were held with village elders of each water point. The findings indicate that lack of uniformity of implementation approaches, and institutional and organizational incapability of the local government aggravate the service failures. The further capacity building, institutionalization, and improving remuneration of employees are likely to reduce the problems substantially.

Resilient Asset Management and Governance Fordeteriorating Water Services Infrastructure

Abstract This paper argues that strategic asset management and a sound regulatory regime are required urgently if we want to change the current paradigm of aging and decaying water services infrastructure and expand the coverage of improved water services in the developing economies. In the OECD countries access to safe water supply and sanitation has largely been ensured through substantial investment over many decades. Yet, significant investments will still be required to rehabilitate the existing infrastructures, to bring them into conformity with more stringent environmental and health regulations, and to maintain service quality in the future. In the non-OECD countries the challenges are more daunting. Large parts of their population have no access and many suffer from unsatisfactory services. Nearly one billion people lack access to clean drinking water and 2.6 billion people lack access to improved sanitation services.Lack of sound economic regulatory frameworks and enforcement regimes, and poor asset management practices, in particular underpricing of water services is a common problem throughout the world.