2005 - 2006 - Pinsent Masons Water Yearbook 2012

PART 4: APPENDIX 3: THE PRIVATE SECTOR AND THE MILLENNIUM DEVELOPMENT GOALS
The Private Sector And The Millennium Development Goals
In order to move forward on this contentious issue, a multi-stakeholder review should be
undertaken. We believe that it is only through such a review (similar to the World Commission
on Dams) that the final, authoritative word can be made on whether PSP benefits the poor. We
also believe in the necessity of building the capacity of civil society actors to influence
privatisation processes and to hold governments and the private sector to account. This needs
to start with improving their knowledge and understanding of the issues surrounding failing
water services, and enabling civil society groups around the world to learn from each other’s
experiences of intervention in privatisation processes.’
Source: New Rules, New Roles: Does PSP benefit the poor? Tearfund, 2003
This Appendix contains some personal thoughts about issues affecting the private sector and
the need for it to play an appropriate role in assisting extension of access to safe water and
sanitation services over the next two decades.
2000-02: The World Water Vision
The World Water Vision for 2025, was launched at the Second World Water Forum at The
Hague in March 2000. It was designed to represent a multilateral and multinational consensus
for gaining universal access to water and sanitation by 2025. In September 2000, 189 United
Nations member states adopted the Millennium Development Goals (MDGs), including to
‘Halve, by 2015, the proportion of people without sustainable access to safe drinking water and
basic sanitation.’ The Second Earth Summit in Johannesburg (2002) ratified the MDG targets
and as with The Hague’s World Water Vision, emphasised the role of the private sector in
providing financial and management resources.
According to figures developed by the World Bank in the late 1990s (for basic services) and
various sources in the EU and the USA (enhanced services), the funding needs identified for
providing basic (driven by public health concerns) or enhanced (driven by environmental
standards) water and sanitation services over the coming decade are as follows:
US$ billion required Basic services Enhanced services
Asia 220-300 10-30
Latin America 200-250 0
Africa 80-100 0
Middle East 45-65 0
Eastern Europe 30-50 0-20
N America & W Europe 25-35 300-450
Total 600-800 310-500
The World Water Vision for 2025 was launched at the Second World Water Forum at The
Hague in March 2000. It was designed to represent a multilateral and multinational consensus
as to the best way to address water problems by 2025. Prior to the World Water Vision,
traditional assumptions for private sector participation (World Bank) expected to see the private
sector contribute 5-15% of funding needs in developing economies. This is equivalent to US$4-
12 billion per annum (pa). The increase in forecast capex needs from US$30 billion to US$80+
billion pa, has been accompanied by an increase in the anticipated scope for private sector
finance to US$10-20 billion pa. Such a financial commitment will not take place unless adequate
investment conditions exist and these require private sector participation in the management of
these services.
389 Pinsent Masons Water Yearbook 2005-2006