New World Bank's findings on water supply by private operators in developing countries

Professional private companies have provided over 25 million people, including many poor, access to a reliable water connection. For the first time, World Bank reports measure private operators’ contribution to providing safe drinking water in developing countries.

More and more public authorities use private operators to ensure local safe drinking water supply in developing countries.

Until now no statistical studies on the impact of these public and private partnerships had been completed. This led to an under estimation of the value and benefits contributed by private operators to overcoming an important global challenge. The World Bank has just filled this gap by publishing a report that measures precisely the impact of contracting the management of public water services to private operators throughout the developing world. This report which was announced at the World Water Forum in Istanbul in March 2009 complements the detailed statistical work published earlier in 2009.

The World Bank report shows that overall local and international private companies deliver much more benefit to the populations and governments of developing countries than is generally recognised.

According to the report, private operators working under contract to public authorities:

• contribute significantly to the Millennium Development Goals to provide access to safe drinking water in the developing countries,4 particularly for poor people.
• improve the performance of water supply, in particular the continuity of service by increasing the number of hours a day that water is available
• improve the operating efficiency of water services: reduction of leaks from the system, improvement of cash collection, increase in productivity, etc
• do not cause price rises that are higher than for public management under the equivalent conditions
• act as a catalyst to progress in neighbouring districts.

The study quantifies the improvement in the access to safe drinking water that is particularly impressive. The World Bank study examines in detail 36 contracts in Africa, Latin America and Asia.