Local Private Sector Participation in Urban Water Services

The public sector will likely play a lead role in urban water services; however considerable untapped potential exists with local private companies that bring local knowledge and business skills. Legal and regulatory reform can serve to harness this potential. This book examines the legal framework to enable local private sector participation in urban water services. An assessment and reform approach applied to New Delhi India as a case study investigated three key issues: 1) water law and policy for access to bulk water; 2) the legal basis and contract options for public-private partnerships; and 3) regulation. For New Delhi water law and policy focused on groundwater management needs. Determining the legal basis and regulatory framework for private sector participation drew upon existing policies and laws; however the lack of applicable law in water services moved the analysis to also examine electricity reforms in India where private sector participation was already in place. The analysis approach applied here provides a template that can help guide policymakers and advisers evaluate reform requirements for leveraging local private sector capacity to improve water services.