An Empirical Analysis of State and Private Sector Provision of Water Services in Africa

Under pressure from donor agencies and international financial institutions such as the World Bank, some developing countries have experimented with the privatization of water services. This article reviews the econometric evidence on the effects o...

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Bibliographic Details
Main Authors:	Kirkpatrick, Colin, Parker, David, Zhang, Yin-Fang
Format:	Journal Article
Language:	English en_US
Published:	Published by Oxford University Press on behalf of the World Bank 2014
Subjects:	ACCESS TO SAFE DRINKING WATER ADEQUATE SANITATION AFFORDABLE WATER AVERAGE PERFORMANCE BENCHMARKING BREWING CAPACITY BUILDING CAPITAL COSTS CAPITAL EXPENDITURE CHILD MORTALITY CLEAN WATER COLLUSION COMPANY CONCESSION AGREEMENT CONCESSION CONTRACTS CONSTRUCTION CONTAMINATED WATER CONTRACT RENEGOTIATION COST RECOVERY COSTS OF CAPITAL CUBIC METER CUBIC METERS CUBIC METERS OF WATER CUSTOMER SERVICE DOMESTIC CONSUMERS EFFICIENCY SCORES ELECTRICITY SECTOR ELECTRICITY SECTOR REFORM EMPIRICAL ANALYSIS ENERGY SUPPLY ENVIRONMENTAL IMPLICATIONS ENVIRONMENTAL OBJECTIVES EXPANSION FINANCIAL INSTITUTIONS FIXED COSTS FRONTIER ANALYSIS FRONTIER ESTIMATION FRONTIER PRODUCTION FRONTIER PRODUCTION FUNCTION MODELS FRONTIER RESULTS GOOD GOVERNANCE GOOD REGULATORY REGIME HOUSEHOLDS IMPACT OF REGULATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PRIVATIZATION INFRASTRUCTURE PROJECTS INFRASTRUCTURE SECTORS INFRASTRUCTURE SERVICES LEASING LONG-TERM CONCESSION MAINTENANCE COSTS NUMBER OF CONNECTIONS OPERATING COSTS OPERATIONAL COSTS PERFORMANCE EVALUATION PERFORMANCE INDICATORS PIPED WATER POOR HOUSEHOLDS PRIVATE CAPITAL PRIVATE ENTERPRISES PRIVATE FIRMS PRIVATE INVESTMENT PRIVATE INVESTMENT IN WATER PRIVATE INVESTORS PRIVATE OPERATORS PRIVATE OWNERSHIP PRIVATE PARTICIPATION PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATE UTILITIES PRIVATE WATER PRIVATE WATER COMPANIES PRIVATE WATER SERVICES PRIVATE WATER SUPPLIERS PRIVATE WATER UTILITIES PRIVATISATION PRIVATISATION PROCESS PRIVATIZATION PRIVATIZATION PROCESS PROPERTY RIGHTS PROVISION OF WATER PUBLIC OWNERSHIP PUBLIC SERVICES PUBLIC WATER QUALITY OF SERVICE QUALITY OF WATER QUALITY STANDARDS REGULATING WATER CONCESSIONS REGULATION DUMMY REGULATION OF PRICES REGULATORS REGULATORY ANALYSIS REGULATORY CAPACITY REGULATORY ENVIRONMENT REGULATORY INDICATORS REGULATORY SYSTEMS REGULATORY VARIABLES ROADS SAFE WATER SAFE WATER SUPPLY SANITATION CONCESSION SANITATION PROVIDERS SANITATION SERVICES SERVICE CONTRACTS SERVICE PROVIDERS SERVICE PROVISION SERVICE QUALITY STATE ENTERPRISES STATE WATER TARIFF REGULATION TECHNICAL EFFICIENCY TECHNICAL SUPPORT TOTAL COSTS TRANSACTION COSTS TRANSFER SCHEMES TRANSLOG URBAN AREAS URBAN WATER URBAN WATER SYSTEM USE OF WATER VARIABLE RETURNS VENDORS VOLUME OF WATER WASTEWATER WASTEWATER SECTOR WATER ASSOCIATION WATER BUSINESSES WATER CHARGES WATER COMPANIES WATER CONSUMPTION WATER ENTERPRISES WATER FACILITIES WATER INDUSTRY WATER LOSSES WATER METERING WATER PRIVATIZATION WATER PRODUCTION WATER PROJECTS WATER PROVISION WATER QUALITY WATER REGULATION WATER RESOURCE WATER RESOURCES WATER SECTOR WATER SERVICES WATER SUPPLIES WATER SUPPLY WATER SUPPLY INDUSTRY WATER SYSTEM WATER SYSTEMS WATER TREATMENT WATER TREATMENT PLANTS WATER UTILITIES WATER UTILITY
Online Access:	http://documents.worldbank.org/curated/en/2006/01/17753327/empirical-analysis-state-private-sector-provision-water-services-africa http://hdl.handle.net/10986/16465

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Summary:	Under pressure from donor agencies and international financial institutions such as the World Bank, some developing countries have experimented with the privatization of water services. This article reviews the econometric evidence on the effects of water privatization in developing economies and presents new results using statistical data envelopment analysis and stochastic cost frontier techniques and data from Africa. The analysis fails to show evidence of better performance by private utilities than by state owned utilities. Among the reasons why water privatization could prove problematic in lower-income economies are the technology of water provision and the nature of the product, transaction costs, and regulatory weaknesses.

An Empirical Analysis of State and Private Sector Provision of Water Services in Africa

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