Water Supply and Sanitation in Transition Countries

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Certain Perspectives of

Water Supply and Sanitation in Transition Countries

May 2009

Dr. Hartwig Graf von Westerholt

Attorney-at-Law

Schiedermair Rechtsanwälte Partnerschaftsgesellschaft

Frankfurt am Main, Germany

Contents

|1. |Guidelines for Integrated Water Resource Management ………………………... |1-2 | |2. |General Objectives – Regulatory Elements of Water Supply …………………… |2-3 | |3. |Decentralisation and Centralisation ………………………………………………... |3-11 | |3.1 |Decentralisation ………………………………………………………………………. |3-4 | |3.2 |Centralisation …………………………………………………………………………. |4 | |3.3 |Critical Aspects of Decentralisation and Centralisation ………………………….. |4-5 | |3.4 |Hybrid Supply Systems ……………………………………………………………… |5-9 | |3.4.1 |Topics of National Significance …………………………………………………….. |5 | |3.4.2 |Forms of Cooperation of Decentralized Supply Systems ………………………... |5-9 | |3.5 |Transition Countries and (De-)Centralization of the Water Sector………………. |9-11 | |4. |Competition and Price ……………………………………………………………….. |11-18 | |4.1 |Ground Rules …………………………………………………………………………. |11 | |4.2 |Water Supply – A Natural Monopoly? ……………………………………………… |11-12 | |4.3 |Water Markets………………………………………………………………………… |12-13 | |4.4 |Benchmarking – Measuring Quality of Supply and Fairness of Prices ………… |13-14 | |4.5 |Pricing …………………………………………………………………………………. |14-18 | |4.5.1 |Public Water Supply Organizations…………………………………………………. |15-16 | |4.5.2 |Private Water Supply Organizations………………………………………………... |16-18 | |5. |Transition Countries - Competition in the Water Sector………………………….. |18-21 |

Certain Perspectives
of Water Supply and Sanitation
in Transition Countries

This paper is the by-product of a descriptive study and a conference presentation undertaken at the invitation of the German Kreditanstalt für Wiederaufbau (KfW). Their common objective was to explain to the representatives of national water organisations of transition countries a set of basic tools aimed to assist them in the analysis and organisation of their individual water related activities. This paper is neither prescriptive nor meant to represent any specific orthodoxy. As to countries both in and beyond the transition phase, the author is admittedly a firm believer in the benefits of a functioning market economy, well balanced against those social responsibilities of the state, which the markets are not adequately able to meet. Yet, for Water Supply and Sanitation (WSS) this balance may be struck quite differently for different countries in view of the differences of their relative...
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