Environment in emerging and transition economies

Regional Policy Dialogue on Private Sector Participation (PSP) in the Water Supply and Sanitation Sector in EECCA


A few EECCA countries (namely, Armenia, Georgia, Kazakhstan, Russia, and Ukraine) have already gained experience with Private Sector Partisipation (PSP) in water supply and sanitation (WSS), while most other countries are very interested in PSP, but often are unsure how to implement it and would like to learn more about it from both regional and international experience.

By PSP we mean a wide range of risk-sharing arrangements relating to the operation and maintainance, as well as expansion and rehabilitation of WSS infrastructure, concluded between the public and the private sectors (ranging from full divestiture of fixed assets to management contracts). So far, the regional experience with PSP in WSS is uneven, and there is huge scope for learning through the exchange of experience.

To support more effective policy making with respect to PSP in WSS in EECCA and help sector actors to better understand the challenges and obstacles to PSP in WSS in the EECCA region, the OECD/EAP Task Force jointly with the World Bank have conducted a number of workshops and Roundtable discussions, at which international stakeholders private sector representatives and EECCA policy makers shared their experiences with PSP and compared their respective strategies. Events took place in Paris (2002), Vienna (2003), Moscow (2004) and Yerevan (2005) – the latter was held in the framework of 2005 Ministerial conference on WWS sector reforms in EECCA.

A follow-up event is scheduled for December  2009 in Moscow. Its main objectives will be to take stock of recent trends, promote a shared understanding of concepts and issues of PSP in WSS, raise awareness of relevant tools and international “good practices”,  and facilitate policy dialogue in EECCA countries on how to develop and implement a more effective policy and regulatory environment for PSP in different country contexts.


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