Private sector participation in the water and sanitation sector

Send

Permanent url www.oecd.org/daf/investment/water

OECD has developed practical guidance for governments wishing to engage the private sector in water infrastructure. Presented in the form of a Checklist for Public Action, the guidance outlines the main policy considerations unique to private sector participation in this sector.

The checklist is extracted from the publication, Private Sector Participation in Water Infrastructure: OECD Checklist for Public Action (March 2009).

Worldwide, over a billion people lack access to drinking water and 2.6 billion to basic sanitation. Developing and managing water and sanitation infrastructure constitutes an urgent and major challenge. Just halving the proportion of people without access to drinking water and sanitation by 2015 would require investments of some USD 72 billion per year.

To meet these tremendous needs, many countries seek out the private sector to modernise and expand their water and sanitation infrastructure and/or to improve the efficiency of ater systems. To make the most of private sector participation, an effective regulatory framework should be in place and key principles of good partnerships should be followed.

Recognising this, the OECD has developed practical guidance for governments wishing to engage the private sector in water infrastructure, building on the OECD Principles for Private Sector Participation in Infrastructure. It also makes use of the Policy Framework for Investment and the Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones.

The guidance was developed through multi-stakeholder dialogues, reviews of specific country experiences and regional consultations:

NEPAD-OECD Roundtable on Strengthening Investment Climate Assessment and Reform in NEPAD Countries, Lusaka, Zambia, 27-28 November 2007
ADB-OECD Expert Meeting for a beneficial private sector participation in the water and sanitation sector, lessons learnt from Asian country experiences, Manila, Philippines, 5 March 2008
IMTA-OECD Expert Meeting for a beneficial private sector participation in the water and sanitation sector, lessons learnt from Latin American country experiences, Mexico, 4-5 September 2008

This project was completed in March 2009 in time to contribute to the 5th World Water Forum in Istanbul. It constitutes one element of a major OECD-wide programme on water policies for affordable services and sustainable resource management www.oecd.org/water.