Private sector participation in the water and sanitation sector

Adopted in 2009, Private Sector Participation in Water Infrastructure is practical guidance for governments wishing to engage the private sector in water infrastructure. Presented in the form of a OECD Checklist for Public Action, the guidance provides a coherent set of policy directions addressing the allocation of roles, risks and responsibilities, and the framework conditions for optimising private sector participation.

The Checklist has be used to conduct assessments of framework conditions for private sector participation in water infrastructure in Egypt, Lebanon, Mexico, Russia and Tunisia:

• Mexico: Assessment of Mexico, June 2012, developed in partnership with CONAGUA. This assessment also contributes to a broader OECD / CONAGUA partnership in support to the implementation of the 2030 Water Agenda.

• Lebanon: Framework conditions for Private Sector Participation in Water Infrastructure in Lebanon, November 2011 [Version française]
   
• Egypt: Assessment of Egypt, August 2010
   
• Russia: Assessment of Russia, August 2010, see also Regional Meeting on Private Sector Participation in water and sanitation in EECCA 

Overview of the Guidance

Worldwide, over a billion people lack access to drinking water and 2.6 billion to basic sanitation. Developing and managing water and sanitation infrastructure constitutes an urgent and major challenge. Just halving the proportion of people without access to drinking water and sanitation by 2015 would require investments of some USD 72 billion per year.

To meet these tremendous needs, many countries seek out the private sector to modernise and expand their water and sanitation infrastructure and/or to improve the efficiency of water systems. To make the most of private sector participation, an effective regulatory framework should be in place and key principles of good partnerships should be followed.

The OECD's practical guidance for governments wishing to engage the private sector in water infrastructure builds on existing OECD instruments:

• OECD Principles for Private Sector Participation in Infrastructure
   
• Policy Framework for Investment
   
• Risk Awareness Tool for Multinationals in Weak Governance Zones

The guidance was developed through multi-stakeholder dialogues, reviews of specific country experiences and regional consultations:

• Africa - NEPAD-OECD Roundtable on Strengthening Investment Climate Assessment and Reform in NEPAD Countries, Lusaka, Zambia, 27-28 November 2007
  
  
• Asia - ADB-OECD Expert Meeting for a beneficial private sector participation in the water and sanitation sector, lessons learnt from Asian country experiences, Manila, Philippines, 5 March 2008
  
  
• Latin America - , Mexico, 4-5 September 2008

This project constitutes one element of a major OECD-wide programme on water policies for affordable services and sustainable resource management.