Private Sector participation and Regulatory Reform in Water Supply

The southern Mediterranean region faces one of the most important water crises in theworld. The combination of aridity, foreign dependency, climate change, misallocation of theresources and escalating human demand make water supply a primary issue for health, economyand poverty reduction. In this context, institutional reform of the water supply sector is of greatinterest. Thus, the aim of this study is to examine the water regulatory framework in southernMediterranean countries and the development of private sector participation in the context ofwater crisis.The first part of the study presents the scope of private sector participation in watersupply and its different forms around the world. An extensive review of 22 empirical tests and 48case studies on the effect of private sector participation in water services has been conducted.This survey shows that private sector participation, per se, in water supply does notsystematically lead to gains in efficiency. Reforming the institutional framework is an essentialprerequisite for delegating water services.Afterward, the paper focuses on the southern Mediterranean region. It comparesinstitutional arrangements, recent regulatory reforms and experiences with private sectorparticipation in water infrastructure in Algeria, Egypt, Jordan, Morocco and Tunisia...