Private Sector Participation in Water Supply and Sanitation in Latin America

The publication consists of two chapters. In the first, Options for Private Sector Participation - the main problems of the public sector are analyzed, the rationale for private sector participation (PSP) is explained, and the array of options for PSP is reviewed. In the second chapter - Case Study: The Buenos Aires water supply and sewerage services awarded by the government of Argentina to a private consortium of foreign operators and local investors is presented and analyzed, because it provides an excellent example of the planning and implementation stages that are needed to ensure a successful transition from public to private management. The three primary objectives of the pubic sector with respect to private sector participation are to expand the water supply and sewerage systems in order to increase population coverage, to expand sewage treatment in order to reduce water pollution and public health hazards, and to provide better quality of service. The secondary objectives are to ensure higher operating efficiency and to finance the system without public subsidies or guarantees.