Икономика и компютърни науки (Jan 2019)
Composition and structure of concessions in the Water Supply and Sanitation sector by regions of the world
Abstract
The purpose of this article is to make analysis of the concession projects in the Water Supply and Sanitation Sector registered and monitored by the World Bank in low-income and high-income countries in order to be able to disclose the composition and structure of concessions by regions of the world. The research study covers the period from 1991 to 2016. It does not cover the composition and structure of the unsuccessful concession projects which have been a target of research in our other scientific papers. In addition to the standard statistical methods, the research has also used indirectly the comparative approach by regions of the world based on the total number, composition and structure of the projects in the water sector and partly those of the water concessions. The practical relevance of the research in view of the high sensitivity of the problems relative to the granting of public Water Supply and Sanitation infrastructure for operation, maintenance and/or management by the private sector is expressed in the assessment of the concession practice condition on an international scale. The results obtained from the research may serve as guidance and assist the public authorities in taking decisions in favor of or against the provision of concession-based water services. Among the basic conclusions being a direct result of the conducted research is that the number of concession projects as a proportion of all public-private partnerships (PPP) projects in the Water Supply and Sanitation Sector, by sub-sectors, takes up 40.8%. 70.3% of them are taken by public utilities. The allocation of the concession projects in the various regions of the world is uneven. According to the author, the primary reason for this is the substantial differences in the social and economic development and/or investment opportunities of the countries included in the scope of the separate regions over the studied period. The more socioeconomically undeveloped the country is and/or the lesser investment opportunities it has, the more likely the country is to opt as more cost-effective and appropriate (as compared to the conditions and engagements relative to the use of a long-term investment loan to this effect) to attract private investments to improve its technical Water Supply and Sanitation infrastructure. The concessions in the Water Supply and Sanitation sector are realized by way of concession agreements concluded only on the basis of ROT, BROT and RL/RT type arrangements. The public utilities concessions are for the most part realized under the BROT type of arrangement (64.6%).
