Tapping the Private Sector

The study highlights the variety of risks that occur in the provision of water and sanitation services and describes in considerable detail the mechanisms used to allocate and mitigate those risks. Where risks are clearly identified and managed, the prospects of success go up. Clearly, there is no magic bullet here: even the successful projects have faced challenges. However, the experience thus far leads to an optimistic prospect for the future. A variety of experiments are ongoing in all parts of the world. Some projects have faced challenges but typically all parties have demonstrated a willingness to find solutions that improve the basis for success. Looking ahead, the interests of governments and the private sector lie in continued efforts to identify arrangements that provide cost effective and quality service while rewarding risk bearing. Pressures for moving ahead have resulted in pragmatic approaches to risk reduction and risk sharing in a variety of contexts, and the prognosis for the future is positive.