Policy makers put water back in public control | Infrastructure news

More than 180 cities and communities in 35 countries have taken back control of their water services in the last 15 years.

This is according to a new report released by the Transnational Institute (TNI), Public Services International Research Unit (PSIRU) and the Multinational Observatory.

The report documents how despite more than three decades of relentless promotion of privatisation and public-private partnerships (PPPs), the negative experience of water privatisation is leading many policy makers to decide that the public sector is better placed to provide quality services to citizens and to promote the human right to water.

The reasons local policy-makers are putting water back under public control are similar across the world. They include poor performance, under-investment, soaring water bills, lack of transparency and poor service quality.

This process of reverting to public control of services, known as remunicipalisation, is taking place across the world in prominent cities such as Buenos Aires, Johannesburg, Paris, Accra, Berlin, Atlanta and Kuala Lumpur.

The report adds that remunicipalisation is accelerating. During the period 2010-2014, 81 remunicipalisations took place in high-income countries. This was double the number of the five previous years. Over the same period, there have been very few new cases of water privatisation in large cities.

Several major cities have regained control of their water services, including Accra, Buenos Aires, Kuala Lumpur, La Paz and Maputo.

The report found that private contracts often proved so unsustainable that local governments opted to terminate them and pay compensation, rather than wait for them to expire before giving control to a public operator.

It further points out that remunicipalisation, tends to lead to enhanced access and quality of service, as resources previously diverted to profits and shareholders have been reinvested in the service itself.

“For mayors and local authorities who are considering reversing privatised contracts, this report shows that it can be done to the great benefit of their local community, “says Satoko Kishimoto, a co-author of the report.

“A growing number of water utilities that have gone through a remunicipalisation process are increasingly ready, along with other institutions to share experiences and provide practical support. Cooperation between public services is the most efficient way to improve water services and promote the human right to water,” he adds.

Download the report Here to Stay: Water Remunicipalisation as a Global Trend here.

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