Do State Holding Companies Facilitate Private Participation in the Water Sector? Evidence from Cote d'Ivoire, the Gambia, Guinea, and Senegal
When the Gambia, Guinea, and Senegal decided to involve the private sector in the provision of water services, they also established state holding companies - state-owned entities with exclusive or partial responsibilities for: a) owning infrastruc...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2000/12/828362/state-holding-companies-facilitate-private-participation-water-sector-evidence-cote-divoire-gambia-guinea-senegal http://hdl.handle.net/10986/19731 |
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okr-10986-197312021-04-23T14:03:44Z Do State Holding Companies Facilitate Private Participation in the Water Sector? Evidence from Cote d'Ivoire, the Gambia, Guinea, and Senegal Kerf, Michel ACCESS TO SAFE DRINKING WATER BOARD MEMBERS BUILD-OWN CENTRAL GOVERNMENT COMMERCIAL BANKS COMMERCIAL ENTERPRISES COMPETITIVE BIDDING CONCESSION CONTRACT CONCESSION CONTRACTS CUBIC METER DEBT DISTRIBUTION SYSTEM DISTRIBUTION SYSTEMS DOMESTIC USE ECONOMIC GROWTH EMPLOYMENT EQUILIBRIUM EXPLOITATION FINANCIAL RESOURCES FRESH WATER HIGH WATER INDUSTRIAL USERS INVESTMENT DECISIONS INVESTMENT EXPENDITURES INVESTMENT PLANNING INVESTMENT PROGRAM LABOR PRODUCTIVITY LARGE WATER USERS LEGISLATION MUNICIPAL AUTHORITIES MUNICIPAL WATER MUNICIPALITIES NATURAL RESOURCES NUMBER OF CONNECTIONS OPERATIONAL PERFORMANCE OWNERSHIP OF WATER PERFORMANCE CONTRACT POPULATION GROWTH PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE PARTICIPATION PRIVATE PARTICIPATION IN WATER PROVISION OF WATER PUBLIC OWNERSHIP PUBLIC SERVICE PROVISION PUBLIC UTILITY PUBLIC WORKS REGULATORY REGIME SERVICE QUALITY SEWERAGE SERVICES SHC URBAN AREAS URBAN WATER URBAN WATER SUPPLY UTILITIES UTILITY SERVICES WAGES WATER CONNECTIONS WATER CONSUMPTION WATER DEMAND WATER DIRECTORATE WATER DISTRIBUTION WATER DISTRIBUTION SYSTEM WATER PRODUCTION WATER QUALITY WATER REVENUES WATER SECTOR WATER SERVICES WATER SUPPLY WATER SUPPLY SERVICES WATER SYSTEMS WATER TARIFF WATER TARIFFS WATER USERS When the Gambia, Guinea, and Senegal decided to involve the private sector in the provision of water services, they also established state holding companies - state-owned entities with exclusive or partial responsibilities for: a) owning infrastructure assets; b) planning and financing investments (replacing assets and expanding networks); c) regulating the activities of the private sector; and d) promoting public acceptance of private participation in the sector. In Cote d'Ivoire, by contrast, when private participation was introduced (in 1960), no state holding company was established. To determine whether state holding companies help private participation in the water sector succeed, the author reviews the four functions these entities are expected to perform in the Gambia, Guinea, and Senegal. In light of experience in all four countries, he examines whether, and under what circumstances, state holding companies might be the entities best suited for carrying out such functions. He concludes that creating a state holding company is often not the best solution. A state holding company might be better suited than other entities for planning and financing investments when (and only when): a) investment responsibilities cannot be transferred to the private operator; b) tariffs are insufficient, at least for a time, to cover investment needs, so it is crucial that a public entity has access to other sources of finance; and c) the holding company's financial strength and accountability, or its incentives and ability to promote the gradual adoption of cost-covering tariffs, are superior to those of a ministerial department. When one or more of these conditions are not met, the main investment responsibilities should be transferred to the private operator or, if that is not possible, left to the government itself. The other three functions should not, as a general rule, be performed by a state holding company. 2014-08-26T20:54:04Z 2014-08-26T20:54:04Z 2000-12 http://documents.worldbank.org/curated/en/2000/12/828362/state-holding-companies-facilitate-private-participation-water-sector-evidence-cote-divoire-gambia-guinea-senegal http://hdl.handle.net/10986/19731 English en_US Policy Research Working Paper;No. 2513 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Cote d'Ivoire Gambia, The Guinea Senegal |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO SAFE DRINKING WATER BOARD MEMBERS BUILD-OWN CENTRAL GOVERNMENT COMMERCIAL BANKS COMMERCIAL ENTERPRISES COMPETITIVE BIDDING CONCESSION CONTRACT CONCESSION CONTRACTS CUBIC METER DEBT DISTRIBUTION SYSTEM DISTRIBUTION SYSTEMS DOMESTIC USE ECONOMIC GROWTH EMPLOYMENT EQUILIBRIUM EXPLOITATION FINANCIAL RESOURCES FRESH WATER HIGH WATER INDUSTRIAL USERS INVESTMENT DECISIONS INVESTMENT EXPENDITURES INVESTMENT PLANNING INVESTMENT PROGRAM LABOR PRODUCTIVITY LARGE WATER USERS LEGISLATION MUNICIPAL AUTHORITIES MUNICIPAL WATER MUNICIPALITIES NATURAL RESOURCES NUMBER OF CONNECTIONS OPERATIONAL PERFORMANCE OWNERSHIP OF WATER PERFORMANCE CONTRACT POPULATION GROWTH PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE PARTICIPATION PRIVATE PARTICIPATION IN WATER PROVISION OF WATER PUBLIC OWNERSHIP PUBLIC SERVICE PROVISION PUBLIC UTILITY PUBLIC WORKS REGULATORY REGIME SERVICE QUALITY SEWERAGE SERVICES SHC URBAN AREAS URBAN WATER URBAN WATER SUPPLY UTILITIES UTILITY SERVICES WAGES WATER CONNECTIONS WATER CONSUMPTION WATER DEMAND WATER DIRECTORATE WATER DISTRIBUTION WATER DISTRIBUTION SYSTEM WATER PRODUCTION WATER QUALITY WATER REVENUES WATER SECTOR WATER SERVICES WATER SUPPLY WATER SUPPLY SERVICES WATER SYSTEMS WATER TARIFF WATER TARIFFS WATER USERS |
| spellingShingle |
ACCESS TO SAFE DRINKING WATER BOARD MEMBERS BUILD-OWN CENTRAL GOVERNMENT COMMERCIAL BANKS COMMERCIAL ENTERPRISES COMPETITIVE BIDDING CONCESSION CONTRACT CONCESSION CONTRACTS CUBIC METER DEBT DISTRIBUTION SYSTEM DISTRIBUTION SYSTEMS DOMESTIC USE ECONOMIC GROWTH EMPLOYMENT EQUILIBRIUM EXPLOITATION FINANCIAL RESOURCES FRESH WATER HIGH WATER INDUSTRIAL USERS INVESTMENT DECISIONS INVESTMENT EXPENDITURES INVESTMENT PLANNING INVESTMENT PROGRAM LABOR PRODUCTIVITY LARGE WATER USERS LEGISLATION MUNICIPAL AUTHORITIES MUNICIPAL WATER MUNICIPALITIES NATURAL RESOURCES NUMBER OF CONNECTIONS OPERATIONAL PERFORMANCE OWNERSHIP OF WATER PERFORMANCE CONTRACT POPULATION GROWTH PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE PARTICIPATION PRIVATE PARTICIPATION IN WATER PROVISION OF WATER PUBLIC OWNERSHIP PUBLIC SERVICE PROVISION PUBLIC UTILITY PUBLIC WORKS REGULATORY REGIME SERVICE QUALITY SEWERAGE SERVICES SHC URBAN AREAS URBAN WATER URBAN WATER SUPPLY UTILITIES UTILITY SERVICES WAGES WATER CONNECTIONS WATER CONSUMPTION WATER DEMAND WATER DIRECTORATE WATER DISTRIBUTION WATER DISTRIBUTION SYSTEM WATER PRODUCTION WATER QUALITY WATER REVENUES WATER SECTOR WATER SERVICES WATER SUPPLY WATER SUPPLY SERVICES WATER SYSTEMS WATER TARIFF WATER TARIFFS WATER USERS Kerf, Michel Do State Holding Companies Facilitate Private Participation in the Water Sector? Evidence from Cote d'Ivoire, the Gambia, Guinea, and Senegal |
| geographic_facet |
Africa Cote d'Ivoire Gambia, The Guinea Senegal |
| relation |
Policy Research Working Paper;No. 2513 |
| description |
When the Gambia, Guinea, and Senegal
decided to involve the private sector in the provision of
water services, they also established state holding
companies - state-owned entities with exclusive or partial
responsibilities for: a) owning infrastructure assets; b)
planning and financing investments (replacing assets and
expanding networks); c) regulating the activities of the
private sector; and d) promoting public acceptance of
private participation in the sector. In Cote d'Ivoire,
by contrast, when private participation was introduced (in
1960), no state holding company was established. To
determine whether state holding companies help private
participation in the water sector succeed, the author
reviews the four functions these entities are expected to
perform in the Gambia, Guinea, and Senegal. In light of
experience in all four countries, he examines whether, and
under what circumstances, state holding companies might be
the entities best suited for carrying out such functions. He
concludes that creating a state holding company is often not
the best solution. A state holding company might be better
suited than other entities for planning and financing
investments when (and only when): a) investment
responsibilities cannot be transferred to the private
operator; b) tariffs are insufficient, at least for a time,
to cover investment needs, so it is crucial that a public
entity has access to other sources of finance; and c) the
holding company's financial strength and
accountability, or its incentives and ability to promote the
gradual adoption of cost-covering tariffs, are superior to
those of a ministerial department. When one or more of these
conditions are not met, the main investment responsibilities
should be transferred to the private operator or, if that is
not possible, left to the government itself. The other three
functions should not, as a general rule, be performed by a
state holding company. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kerf, Michel |
| author_facet |
Kerf, Michel |
| author_sort |
Kerf, Michel |
| title |
Do State Holding Companies Facilitate Private Participation in the Water Sector? Evidence from Cote d'Ivoire, the Gambia, Guinea, and Senegal |
| title_short |
Do State Holding Companies Facilitate Private Participation in the Water Sector? Evidence from Cote d'Ivoire, the Gambia, Guinea, and Senegal |
| title_full |
Do State Holding Companies Facilitate Private Participation in the Water Sector? Evidence from Cote d'Ivoire, the Gambia, Guinea, and Senegal |
| title_fullStr |
Do State Holding Companies Facilitate Private Participation in the Water Sector? Evidence from Cote d'Ivoire, the Gambia, Guinea, and Senegal |
| title_full_unstemmed |
Do State Holding Companies Facilitate Private Participation in the Water Sector? Evidence from Cote d'Ivoire, the Gambia, Guinea, and Senegal |
| title_sort |
do state holding companies facilitate private participation in the water sector? evidence from cote d'ivoire, the gambia, guinea, and senegal |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2000/12/828362/state-holding-companies-facilitate-private-participation-water-sector-evidence-cote-divoire-gambia-guinea-senegal http://hdl.handle.net/10986/19731 |
| _version_ |
1764440496226172928 |