Water services and the private sector in developing countries: Comparative perceptions and discussion dynamics, 2012.
Aymeric BLANC and Sarah BOTTON, AFD.
CONTENTS
Part 1
Major PPP contracts with international operators 27
1.1. Private water networks preceded the public ones
B. DARDENNE 29
Introduction 29
1.1.1. The first European water networks 30
1.1.2. The first systems in developing countries 3 7
Conclusions 46
References 48
1.2. PPPs for drinking water services:
Some lessons from the French experience for developing countries
C. PEZON and L. BREUIL 5 1
Introduction 51
1.2.1. Failure of the concession model for generalizing access to drinking water:
comparison of the French and Argentine experiences 5 2
1.2.2. The affermage success in France: Lessons for today’s Sub-Saharan Africa 6 1
Conclusions 68
References 6 9
1 . 3 . The affermage contract: A case study from Niger
V. DUPONT 73
Introduction 73
1.3.1. A reform to fill an investment need 74
1.3.2. Adopting the affermage option for minimizing risk to the private sector 7 5
1.3.3. Remuneration of the lessee depends upon his performance 79
1.3.4. Balanced risk sharing 81
1.3.5. Satisfactory technical results 84
1.3.6. Improving, but still insufficient, performance and coverage rates 86
1.3.7. A sector in financial equilibrium for the moment 88
Conclusions 9 1
References 92
1.4. PPPs for urban water utilities in developing countries:
Review of their performance over the past 15 years
P. MARIN 95
Introduction 95
1.4.1. Water utility PPPs in developing countries 97
1.4.2. What has been the actual performance of water PPP projects? 1 0 2
1.4.3. Key Findings 1 1 3
1.4.4. Lessons for designing water utility PPPs better adapted to the developing world 1 1 8
Conclusions 124
References
Part 2
“Grafting” models from developed countries
on to local contexts 129
2.1. Private sector participation in Senegal: a successful “home grown” strategy?
S. TREMOLET 1 3 1
Introduction 1 3 1
2.1.1. The facts: The contractual arrangements worked and delivered 1 3 2
2.1.2. What happened during the life of the contract? 1 3 8
2.1.3. What were the main factors for success? 1 4 1
Conclusions 148
References 149
2.2. Énergie du Mali or the paradox of a “resounding failure”
B. HIBOU, O. VALLÉE and A. BLANC 1 5 1
Introduction 1 5 1
2.2.1. The EDM experience: 10 years of PPP 1 5 2
2.2.2. The EDM partnership put to the test of the social equation in Mali 1 5 8
Conclusions 164
References 165
2.3. “Rejecting the graft” or the virtual reality of transferring the PPP model:
the Buenos Aires (Argentina) and La Paz-El Alto (Bolivia) cases
S. BOTTON, A. BRAILOWSKY and P.-L. MAYAUX 167
Introduction 167
2.3.1. The Aguas Argentinas concession in Buenos Aires 168
2.3.2. The Aguas del Illimani concession at La Paz – El Alto 177
2.3.3. Analysis of the Latin-American experiences and strategic reformulation
of the Suez Environment (SE) Group 1 8 5
Conclusions 1 9 1
References 193
2.4. Partnerships and reform strategies in water utilities.
The experience of Cartagena (Colombia) and Campo Grande (Brazil)
P.-L. MAYAUX 1 97
Introduction 1 97
2.4.1. PPPs and changing management principles 201
2.4.2. Contract preparation: between constructing an alliance and neutralizing opposition 203
2.4.3. Progress of the partnership 209
Conclusions 215
References 217
2.5. PPPs tested by cultural differences. A case study from Lebanon
H. YOUSFI 219
Introduction 219
2.5.1. Context of the study 2 2 1
2.5.2. The history of the partnership as told by the stakeholders 224
2.5.3. Different readings of the contract 229
Conclusions 232
References 234
RechercheB_N2_GB_BAT2 23/02/12 22:29 Page 62.6. Private operators in the water and sanitation sector in Colombia. The Conhydra case
C. AREVALO-CORREA 235
Introduction 235
2.6.1. The water and sanitation sector in Colombia 236
2.6.2. Private sector participation 243
2.6.3. Analysis and evaluation of results 249
Conclusions 260
Bibliographie
Part 3
A new look at how private players intervene:
the return of pragmatism? 265
3 .1. A specific type of PPP: the public-private company or “empresa mixta ”
V. CASTRO and J. G. JANSSENS 2 67
Introduction 2 67
3.1.1. Rationale and legal basis 2 6 8
3.1.2. Ownership, operations and oversight 270
3.1.3. Partnership arrangement, autonomy and accountability 2 7 3
3.1.4. Regulation and financing 2 7 3
3.1.5. Analysis of risks and difficulties 2 7 5
Conclusions 280
References 2 8 1
3.2. The semi-public company for water and sanitation: the cases of Barranquilla
and Cartagena (Colombia)
A. BLANC and D. ZAMUNER 283
Introduction 283
3.2.1. The SPC as a pragmatic and flexible response to a crisis situation 285
3.2.2. Positive service results, but unbalanced contracts 293
Conclusions 302
References 305
3 . 3 . Joint ventures for operations in China
D. LORRAIN 307
Introduction 307
3.3.1. First experience 308
3.3.2. Change in doctrine 3 1 0
3.3.3. How an operation is arranged 3 1 1
3.3.4. The industrial approach 3 1 3
3.3.5. The contract and its balance 3 1 5
3.3.6. Transparency 3 1 7
Conclusions 319
References 321
3.4. Review of the international literature on drinking water distribution SSWPs
J. CAVE and A. BLANC 323
Introduction 323
3.4.1. SSWPs: stakeholders who build their legitimacy on an illegal basis 324
3.4.2. What public service in a fragmented city? 3 2 9
3.4.3. The thorny issue of SSWP regulation 3 3 3
Conclusions 339
References 341
3.5. What complementarity between formal and informal sectors?
The regulation of water distribution SSWPs in Ho Chi Minh City (Vietnam)
S. BOTTON 345
Introduction 345
3.5.1. SSWPs in HCMC water services: background 3 4 6
3.5.2. The small private mini piped network operator:
from a spontaneous emergence to institutionalized support 3 5 1
3.5.3. The gradual phasing out of support for SSWPs in urban areas (2002-2008) 3 60
Conclusions 365
References 369
3.6. The Small-Scale Private Water Providers (SSPWPs) of Maputo:
an alternative model to be encouraged?
A. BLANC 371
Introduction 37 1
3.6.1. An informal sector that has developed in the shadow of a deficient public water supply 371
3.6.2. A relevant alternative model? 3 8 1
3.6.3. The SSPWPs and the public water policy in Maputo 3 8 3
Conclusions 392
References 393
3 . 7. Promoting the institutional transition of drinking water SSWPs.
Lessons learned from the Mirep Programme in Cambodia
F. NAULET 395
Introduction 395
3.7.1. The emergence of small water entrepreneurs in Cambodia’s large towns:
the specifics and limits of local private initiative 3 97
3.7.2. Mirep: supporting professionalization within a negotiated contractual framework 402
Conclusions 413
References 415
3.8. Private operators and water supply in sub-Saharan African villages
C. LEGER and J. ETIENNE 417
Introduction 417
3.8.1. Background: the water sector in rural areas 417
3.8.2. The rural water maintenance reform in Burkina Faso:
the view of a key stakeholder 4 2 1
3.8.3. Initial results after six months of operation (May – October 2009) 428
Conclusions 437
References
