Private Participation in Water : Toward a New Generation of Projects

Abstract

In the water sector of developing countries the investment boom of the late 1990s has been followed by declining investment flows and the cancellation or distress of several high-profile projects. Enthusiasm has been replaced by doubts. But recent data paint a more nuanced picture. Activity in 2005 suggests that private participation in the water sector is entering a new phase. New private activity is focusing on smaller projects, a few countries, and bulk facilities. Contractual arrangements involving utilities are combining private operation with public financing. And new players are entering the market.