Regulating Water Concessions : Lessons from the Buenos Aires concession
The Argentine government privatized the water and sewerage services in greater Buenos Aires by concession. The utility was sold as a single monopoly business, but bidders had to compete for the right to provide service at the lowest price. Contract...
| Main Authors: | , |
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1996/09/693098/regulating-water-concessions-lessons-buenos-aires-concession http://hdl.handle.net/10986/11610 |
| Summary: | The Argentine government privatized the
water and sewerage services in greater Buenos Aires by
concession. The utility was sold as a single monopoly
business, but bidders had to compete for the right to
provide service at the lowest price. Contractual targets for
service coverage implied significant investment over the
life of the contract. As things have turned out, the assets
were in worse shape than expected, and a renegotiation rule
has allowed a tariff hike to pay for accelerated investment.
The authors argue, however, that the pricing system is still
flawed, producing incentive problems for investment. |
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