Privatization of Water in the Middle East--the money quote....

[Gloria]

It all sounds so great, until you read about how raising "tariffs" can be a problem and the advice is to "disassociate" the rate increases from the private sector participation."

Love the transparency.......ha ha!!

4//MENA Report, Jordan Wednesday 31st, May 2006 -- 01:59 GMT

http://www.menareport.com/en/business/198685


BOOZ ALLEN HAMILTON: PUBLIC-PRIVATE PARTNERSHIPS KEEP MIDDLE EAST WATER FLOWING


The water needs of Middle Eastern countries are growing at a significant rate, while the cost of providing this valuable resource is increasing while nonrenewable groundwater reserves are shrinking.


As a result, Middle Eastern governments are increasingly turning to public-private partnerships (PPPs) to manage their water resources and everything related to water distribution.


(SNIP)


Because of all this governments in the Middle East and around the world are increasingly turning to the private sector for support in developing and delivering water and wastewater services. Private corporations are brought in to provide new technologies, increase efficiency, and help governments ensure continuous, universal access to quality water. Private companies are also used because they can often provide the capital needed to bring aging infrastructures in line with modern standards.



“The private sector should be excited about the trend toward privatization,” says El-Husseini. “MENA governments are expected to spend more than US$100 billion in the water sector in the next five years, with Saudi Arabia, Egypt, and the UAE together spending US$57 billion.”

(SNIP)

In addition, redesigning tariffs to better manage demand and improve cost recovery is still a taboo subject carrying significant political and social risks. Generally though, the more sophisticated the tariff structure, the better a government is able to manage demand and fully recoup costs.


“Successful implementation of tariff restructuring often combines several key ingredients,” says El-Husseini. “Namely, a thorough assessment of consumers’ ability and willingness to pay for services, the timing of tariff changes in tandem with significant and visible improvements in service, and a communications campaign that explains the rationale for and benefits of tariff changes and disassociates tariff increases from private sector participation.”


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[msongs]

1. read today's LATimes article re private water companies in CA

and how they are ripping off and cheating the people, jacking up the rates exhorbitantly, providing unsafe water, and how local communities are restoring public water ownership.

private water companies are in the Enron business.

privatizing water is suicide.

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