The Prospects of Privatization of Water Supply Services

The aim of this research was to identify whether
Private Sector Participation (PSP) is an appropriate
tool for the Water Supply and Sanitation (WSS) sector
policy in Azerbaijani secondary towns, and if so, to
identify the conditions needed for sustainable PSP.

This study demonstrated that PSP in WSS is
potentially beneficial for Azerbaijani secondary
towns. It was found that the most appropriate models
are so-called concession and BOOT , but current
investment risks make them unfeasible for now. These
investment risks need to be ameliorated and three
main reforms urgently implemented elaboration of a
coherent sector strategy, building an appropriate
sector structure with consideration of PSP prospects,
and rigid allocation of responsibilities between the
stakeholders. The ways for capacity building of both
regulators and municipalities are provided.

Autorentext

Farhad Mukhtarov is completing his Ph.D. on Integrated Water
Resources Management at Central European University, Budapest.
His research interests lie in the area of water resources
management and globalisation. He has a MSc. degree from Central
European University ,and spent 2007/2008 at Oxford Centre for
Water Research as a Chevening Scholar.

Klappentext

The aim of this research was to identify whether
Private Sector Participation (PSP) is an appropriate
tool for the Water Supply and Sanitation (WSS) sector
policy in Azerbaijani secondary towns, and if so, to
identify the conditions needed for sustainable PSP.

This study demonstrated that PSP in WSS is
potentially beneficial for Azerbaijani secondary
towns. It was found that the most appropriate models
are so-called "concession" and "BOOT", but current
investment risks make them unfeasible for now. These
investment risks need to be ameliorated and three
main reforms urgently implemented elaboration of a
coherent sector strategy, building an appropriate
sector structure with consideration of PSP prospects,
and rigid allocation of responsibilities between the
stakeholders. The ways for capacity building of both
regulators and municipalities are provided.