ABSTRACT
This chapter has shown that, at least in the case of developing countries and transitional economies, private sector participation appears to be an irreversible trend. At the same time, it highlighted the fact that, in most cases, national policies and institutions were not (yet) adapted to incorporating private actors within the overall water resources management framework. What is worse, decentralisation – which is advocated by the World Bank in parallel to privatisation – further exacerbates the discrepancy between powerful TNCs on the one hand and weak municipalities on the other, as shown particularly clearly in the case of El Salvador. But in Africa also, private sector participation appears as a formidable challenge and opportunity – water TNCs will bring, for example, investment flows and know-how, which otherwise can hardly be obtained. And the Manila example shows that the contractual agreement with the water TNC did not include some of the most crucial matters, i.e. environmental protection. Some sort of relationship between the government and the operator proves to be essential, and this is especially true in terms of environmental regulation.
