People's Republic of China: Do Private Water Utilities Outperform State-Run Utilities?

This analysis of the water utilities in the People’s Republic of China has confirmed the potential benefits of public–private partnerships (PPPs) in infrastructure. A study of water utilities in 300 prefecture-level cities, over a period in which the share run as PPPs rose from 8% to almost 40%, found that PPPs improved performance. Urban water utilities run as PPPs were more efficient than conventionally-run water utilities. PPPs were more productive, required less subsidies (and this was not a result of higher charges), and had lower labor costs. Many of the PPPs in the People’s Republic of China’s water sector have mixed private-state ownership. PPPs with majority private ownership had better impacts than those with minority private ownership.

  • Abstract
  • Executive Summary
  • Introduction
  • The PRC's Water Sector
  • Entry of the Private Sector
  • Empirical Analysis
  • Conclusion
  • Appendix
  • References

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