Water privatization is short for private sector participations in the provision of water services and sanitation. Water privatization has a variable history in which its popularity and favorability has fluctuated in the market and politics. One of the common forms of privatization is public–private partnerships (PPPs). PPPs allow for a mix between public and private ownership and/or management of water and sanitation sources and infrastructure. Privatization, as proponents argue, may not only increase efficiency and service quality but also increase fiscal benefits. There are different forms of regulation in place for current privatization systems.
Access to at least basic water increased from 94% to 97% between 2000 and 2015; an increase in access to at least basic sanitation from 73% to 86% in the same period;
In 2020, 97.7% of Indians had access to the basic water and sanitation facilities. India faces challenges ranging from sourcing water for its megacities to its distribution network which is intermittent in rural areas with continuous distribution networks just beginning to emerge. Non-revenue water is a challenge.
Water supply and sanitation in Rwanda is characterized by a clear government policy and significant donor support. In response to poor sustainability of rural water systems and poor service quality, in 2002 local government in the Northern Byumba Province contracted out service provision to the local private sector in a form of public–private partnership. Support for public-private partnerships became a government policy in 2004 and locally initiated public-private partnerships spread rapidly, covering 25% of rural water systems as of 2007.
Water privatisation in Jakarta began when the British water company Thames Water entered into an agreement with the son of then-President Suharto in 1993 to obtain a water concession. Under the influence of the French water company Suez, however, the government decided to split the city's service area between the two companies. The government awarded Thames Water and Suez each a concession for one half of the city without competitive bidding. The contracts foresaw water charge increases that would allow the companies to earn a comfortable 22 percent rate of return. However, only two months after the contracts were signed, the Indonesian rupiah massively lost in value due to the East Asian financial crisis, and President Suharto was toppled. The concessions survived, but the government imposed a tariff freeze and the contracts had to be renegotiated to reduce their targets. In 2006 Suez sold half and Thames Water all its shares to Indonesian investors.
Water privatization in Metro Manila began when the then President of the Philippines, Fidel Ramos, instructed the government in 1994 to solve what he called the water crisis in Manila by engaging with the private sector. In 1997, two concession contracts for the Eastern and Western halves of Metro Manila were awarded after an open competition. The concessions represent the largest population served by private operators in the developing world. Both winning companies, Maynilad Water Services in West Manila and especially Manila Water in East Manila, submitted bids with extremely low water tariffs. The tariffs proved to be too low to finance the investments needed to improve performance, especially after the East Asian financial crisis and the devaluation of the Philippine Peso.
Water privatisation in Ghana has been discussed since the early 1990s as a reaction to poor service quality and low efficiency of the existing urban water utility. The World Bank supported the process of private sector participation in the urban water sector from the beginning. After many tribulations a 5-year management contract was awarded in 2006. When the contract expired in 2011, the government decided not to extend it, saying that the private operator had not lived up to expectations.
The Ugandan water supply and sanitation sector made substantial progress in urban areas from the mid-1990s until at least 2006, with substantial increases in coverage as well as in operational and commercial performance. Sector reforms from 1998 to 2003 included the commercialization and modernization of the National Water and Sewerage Corporation (NWSC) operating in cities and larger towns, as well as decentralization and private sector participation in small towns.
Water supply and sanitation in Mozambique is characterized by low levels of access to at least basic water sources, low levels of access to at least basic sanitation and mostly poor service quality. In 2007 the government has defined a strategy for water supply and sanitation in rural areas, where 62% of the population lives. In urban areas, water is supplied by informal small-scale providers and by formal providers.
Water supply and sanitation in Zambia is characterized by achievements and challenges. Among the achievements are the creation of regional commercial utilities for urban areas to replace fragmented service provision by local governments; the establishment of a regulatory agency that has substantially improved the availability of information on service provision in urban areas; the establishment of a devolution trust fund to focus donor support on poor peri-urban areas; and an increase in the access to water supply in rural areas.
Water supply and sanitation in Senegal is characterized by a relatively high level of access compared to most of Sub-Saharan Africa. One of its interesting features is a public-private partnership (PPP) that has operatedin Senegal since 1996, with Senegalaise des Eaux (SDE), a subsidiary of Saur International, as the private partner. It does not own the water system but manages it on a 10-year lease contract with the Senegalese government. Between 1996 and 2014, water sales doubled to 131 million cubic meters per year and the number of household connections increased by 165% to more than 638,000. According to the World Bank, "the Senegal case is regarded as a model of public-private partnership in sub-Saharan Africa". Another interesting feature is the existence of a national sanitation company in charge of sewerage, wastewater treatment and stormwater drainage, which has been modeled on the example of the national sanitation company of Tunisia and is unique in Sub-Saharan Africa.
Drinking water supply and sanitation in Egypt is characterized by both achievements and challenges. Among the achievements are an increase of piped water supply between 1998 and 2006 from 89% to 100% in urban areas and from 39% to 93% in rural areas despite rapid population growth; the elimination of open defecation in rural areas during the same period; and in general a relatively high level of investment in infrastructure. Access to an at least basic water source in Egypt is now practically universal with a rate of 98%. On the institutional side, the regulation and service provision have been separated to some extensions through the creation of a national Holding Company for Water and Wastewater in 2004, and of an economic regulator, the Egyptian Water Regulatory Agency (EWRA), in 2006. , many challenges remain. Only about one half of the population is connected to sanitary sewers. Partly because of low sanitation coverage about 50,000 children die each year because of diarrhea. Another challenge is low cost recovery due to water tariffs that are among the lowest in the world. This in turn requires government subsidies even for operating costs, a situation that has been aggravated by salary increases without tariff increases after the Arab Spring. Poor operation of facilities, such as water and wastewater treatment plants, as well as limited government accountability and transparency, are also issues.
Water supply and sanitation in Morocco is provided by a wide array of utilities. They range from private companies in the largest city, Casablanca, the capital, Rabat, Tangier, and Tetouan, to public municipal utilities in 13 other cities, as well as a national electricity and water company (ONEE). The latter is in charge of bulk water supply to the aforementioned utilities, water distribution in about 500 small towns, as well as sewerage and wastewater treatment in 60 of these towns.
Water privatization in Armenia – or, more accurately, the participation of private companies in the provision of water supply under contract with the government of Armenia – has been prepared since the mid-1990s. The first management contract for water supply in Armenia, covering the capital Yerevan, was signed in 1999 with financial support from the World Bank. As of 2010, almost 2.1 million people or about two thirds of the population of Armenia, including its entire urban population, received their drinking water from private companies. Sanitation is not included in the private sector contracts and remains a public responsibility.
Water supply and sanitation in Burkina Faso are characterized by high access to water supply in urban areas, while access to an at least basic water sources in rural areas – where three quarters of the population live – remains relatively low. An estimated one third of water facilities in rural areas are out of service because of a lack of maintenance. Access to at least basic sanitation lags significantly behind access to water supply.
Water supply and sanitation in Turkey is characterized by achievements and challenges. Over the past decades access to drinking water has become almost universal and access to adequate sanitation has also increased substantially. Autonomous utilities have been created in the 16 metropolitan cities of Turkey and cost recovery has been increased, thus providing the basis for the sustainability of service provision. Intermittent supply, which was common in many cities, has become less frequent. In 2004, 61% of the wastewater collected through sewers was being treated. In 2020 77% of water was used by agriculture, 10% by households and the rest by industry.
Water supply and sanitation in Malaysia is characterised by numerous achievements, as well as some challenges. Universal access to water supply at affordable tariffs is a substantial achievement. The government has also shown a commitment to make the sector more efficient, to create a sustainable funding mechanism and to improve the customer orientation of service providers through sector reforms enacted in 2006. The reform creates a modern institutional structure for the water sector, including an autonomous regulatory agency, an asset management company and commercialised state water companies that have to reach certain key performance indicators that will be monitored by the regulatory agency. The government has also stated its intention not to embark on new private sector contracts for water provision, after a bout of such contracts during the 1990s showed mixed results.
Although access to water supply and sanitation in sub-Saharan Africa has been steadily improving over the last two decades, the region still lags behind all other developing regions. Access to improved water supply had increased from 49% in 1990 to 68% in 2015, while access to improved sanitation had only risen from 28% to 31% in that same period. Sub-Saharan Africa did not meet the Millennium Development Goals of halving the share of the population without access to safe drinking water and sanitation between 1990 and 2015. There still exists large disparities among sub-Saharan African countries, and between the urban and rural areas. The MDGs set International targets to reduce inadequate Water Sanitation and Hygiene (WASH) coverage and now new targets exist under the Sustainable Development Goals. The MDGs called for halving the proportion of the population without access to adequate water and sanitation, whereas the SDGs call for universal access, require the progressive reduction of inequalities, and include hygiene in addition to water and sanitation. Particularly, Sustainable Development Goal SDG6 focuses on ensuring availability and sustainable management of water and sanitation for all.
Water supply and sanitation in Nairobi is characterised by achievements and challenges. Among the achievements is the expansion of infrastructure to keep pace with population growth, in particular through the construction of the Thika Dam and associated water treatment plant and pipelines during the 1990s; the transformation of the municipal water department into an autonomous utility in 2003; and the more recent reduction of water losses – technically called non-revenue water – from 50 to 40%.
Water supply and sanitation in Vietnam is characterized by challenges and achievements. Among the achievements is a substantial increase in access to water supply and sanitation between 1990 and 2010, nearly universal metering, and increased investment in wastewater treatment since 2007.
