Testing the Waters : A Phased Approach to a Water Concession in Trinidad and Tobago
The government of Trinidad and Tobago has adopted a two-phased approach to privatizing its water services. In the first phase, a preconcession, or enhanced management contract, was recently awarded through a competitive bidding process. After thr...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1997/01/695041/testing-waters-phased-approach-water-concession-trinidad-tobago http://hdl.handle.net/10986/11598 |
| Summary: | The government of Trinidad and Tobago
has adopted a two-phased approach to privatizing its water
services. In the first phase, a preconcession, or enhanced
management contract, was recently awarded through a
competitive bidding process. After three to five years, in
the second phase, this management contract will be converted
to a long-term concession for which the incumbent will have
first rights of negotiation. With the management contract
now in place for less than a year, it is too early to draw
firm lessons. But the two-phase strategy looks like a good
choice for a small country with poor sector information and
limited regulatory capacity. The preconcession agreement
gives the government time to gather information for better
risk allocation in the future, develop a long-term tariff
regime, and establish a relationship of trust with a private
operator--while it also improves service using private
sector management. This Note discusses the strengths and
weaknesses of the strategy. |
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