magazine of the International Water Association 1 Strategies for Private Participation : Matching Vision with Performance

When publicly owned and operated water utilities lack the resources and technical expertise to expand services and operate efficiently, governments may seek investment from the private sector through concessions or other contractual arrangements. In such instances, a credible regulatory presence can promote favorable outcomes for all stakeholders by identifying the operating efficiencies of utilities while government sets objectives that incorporate citizen preferences. In the fifth in a series of articles on regulatory governance, Sanford Berg and Lynne Holt examine the features of water utilities that make them likely to benefit from private-sector participation and address the role of independent regulatory commissions in maximizing the long-term success of private participation.