Description

This five-volume set presents the findings of an ADB regional technical assistance study which developed sector-specific best practices for promoting private sector participation in key infrastructure sectors in ADB's developing member countries.

The best practices cover the role of government, institutional reform, strategic planning, legal and regulatory frameworks, unbundling and competition, contractual arrangements, sources of financing, and the allocation of risk.

This volume examines the features of water supply, the need and options for private sector participation, and institutional structures and incentives. It also recommends a framework and best practices for moving to private sector participation in water supply.

Contents

• Foreword, Abbreviations, Glossary, List of Tables, List of Figures, List of Boxes
• Executive Summary
  • Introduction
  • Major Issues and Best Practices
  • In-depth Country Studies
• Part One: Study Overview
• Introduction
• The Growth of Private Sector Participation
  • Expansion and Contraction of Private Sector Investment
  • The Challenge for Private Sector Infrastructure Investment
• Cross-Sectoral Issues for Private Sector Participation
  • The Need for Reform and Role of Government
  • Institutional Reform
  • Strategic Planning
  • Legal and Regulatory Framework
  • Unbundling and Introducing Competition
  • Sources of Financing
  • Risk and Risk Mitigation
• Summary of Sectoral Best Practices
  • Power
  • Water
  • Roads
  • Ports
  • Airports
• The Role of the Asian Development Bank
• Part Two: Water Supply Sector Report
• Introduction
  • The Need for Private Sector Investment
  • The Public Sector Model of Water Supply
  • Report Structure
• Features of Water Supply
  • Social, Environmental and Economic Characteristics
  • Significance to Urban and Economic Development
  • Natural Resource Management Strategy
  • Property Rights - Tradability and Vesting Issues
  • Natural Monopoly Characteristics
  • Rivers, Catchments, Ground Water
  • Dams and Bulk Transmission Pipelines
  • Water Treatment and Retail Distribution
  • Market Structures and Competition
  • Bulk (Wholesale) Water Markets
  • Retail Water Market
  • Shortage of Water
• Institutional Structures and Incentives
  • Commercialization
  • Corporatization - A Means for Facilitating Restructure
  • Practical Aspects of Corporatization
  • Private Sector Investment and Efficiency
  • Other Incentive Issues
• Private Sector Participation
• Pro-Competitive and Monopoly Control Strategies
  • Competition for the Market
  • Unbundling and Comparative Competition
  • Third Party Access to Water Supply Infrastructure
  • Rate of Return Regulation
  • Cost-plus Pricing
  • Price Cap Regulation
• Risk Allocation and Mitigation Policies and Mechanisms
  • Identifying Risks
  • Mechanisms to Reduce and Manage Risk
• Towards Best Practice
  • The Economy Wide Institutional Legal and Regulatory Frameworks
  • General Water Supply Reforms
  • A Framework for Moving to PSP in Water Supply
  • Private Investment - Employment Impacts
  • Implications of Asian Currency Crisis on PSP
  • Examination of Lender Policies
• Appendixes
  • Detailed Case Studies
  • Other Countries Experiences
  • Best Practice Workshop - Private Sector Participation in Water Infrastructure Investments