ABSTRACT
This chapter considers the need for private-sector investment and management in the water sector. It examines some of the key driving forces for future private-sector investment as well as the current state of play. The most attractive market for the private-sector water players is the operation and upgrading of services in large cities. Private water vendor services provide water of dubious quality at five to 65 times the cost of piped water, owing to a lack of viable alternatives. As the UK water sector has demonstrated since 1994, the private sector has the capability of delivering investment programmes well within budget. Private capital and management can help to address water and wastewater infrastructure and service needs where projects can generate enough revenues to cover their operating costs and service debts and offer a competitive rate of return. In essence, water and wastewater privatization is about allowing major capital expenditure projects to be examined on their economic, service and environmental merits.
