A/HRC/15/31
reforms advocating for States to reduce public spending and avoid significant investments.3
Some of the reforms leading to greater involvement of the private sector have been imposed
through loan or aid conditionalities, debt reprogramming or loan forgiveness.4
7.
Some highly visible instances of private sector participation have triggered a
vigorous debate, criticism and high scrutiny over the formal private sector, focusing more
on water than sanitation. On the one side, some argue that water is a public good and a
unique resource essential for life and health and thus should remain in the public domain.
Critics often point to instances where private sector participation is perceived to have
failed, arguing that performance has been poor, agreed coverage targets have not been met,
the quality of services has decreased, prices have increased substantially and that processes
have not been transparent. Conversely, others argue that the private sector can contribute to
the necessary investments in the sector, and thus extend coverage to currently unserved or
underserved areas, as well as increase service quality and efficiency, contribute with
technologies and skills and provide services at lower prices.
8.
The intensity of the debate between advocates and critics, which is sometimes
ideological and emotional, may have partially obscured the actual extent of private sector
participation. While such participation is very common in some countries,5 on a global
scale, other forms of service provision predominate. It has been estimated that, as of 2003,
only 5 per cent of world’s population was being served by the formal private sector.6
Moreover, the debate sometimes conveys the impression that the private sector is largely
dominated by transnational corporations. This does not reflect present reality. Some
transnational corporations have started to withdraw from developing countries,7 they are
increasingly developing local partnerships,8 and, in a number of countries, local private
actors are also very active.9 Moreover, delegated service provision is not limited to the
operation of networks; service provision can also be delegated to suppliers of nonnetworked services including standpipe operators, water kiosks, and operators of shared
sanitation facilities.
9.
Private sector participation is commonly used to refer to a broad spectrum of
contractual arrangements between governments and the private sector that involve private
companies in varying degrees in the provision of water and sanitation services. They differ
according to the ownership of assets, the responsibility for capital investments, the
allocation of risks, the responsibility for operations and maintenance, and the typical
3
4
5
6
7
8
9
investment (E/CN.4/Sub.2/2003/9); and more generally on the fragmentation of international law the
report of the Study Group of the International Law Commission on “Fragmentation of international
law: difficulties arising from the diversification and expansion of international law” (A/CN.4/L.682).
See the report of the independent expert on the effects of foreign debt and other related international
financial obligations of States on the full enjoyment of all human rights, particularly economic, social
and cultural rights, (A/HRC/11/10), paras. 26-42.
Karen Bakker, “Overview paper: recent trends in PSP, financing, and regulation in the water sector”,
The Water Dialogues, April 2009, available from www.waterdialogues.org/thematic.htm, p. 2.
For instance, in France and Malaysia it is estimated that 80 per cent and 64 per cent of the population,
respectively, are served by the private sector. See Prasad, “Overview: social policies”, pp. 22 and 26.
Herath Gunatilake and Mary Jane F. Carangal-San Jose, “Privatization revisited: lessons from private
sector participation in water supply and sanitation in developing countries”, Economics and Research
Department (ERD) Working Paper No. 115 (Asian Development Bank, 2008), pp. 15-16.
Philippe Marin, Public-Private Partnerships for Urban Water Utilities: A Review of Experiences in
Developing Countries (Washington, D.C., World Bank, 2009), p. 34.
Organization for Economic Cooperation and Development (OECD), Private Sector Participation in
Water Infrastructure (Paris, 2009), p. 17.
Marin, Public-Private Partnerships, p. 29.
5
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