2005年-世界发展银行全球_Private_Water_Projects_4页_347kb

Summary of Private Water Projects in Developing Countries (2001-2004)

Core Content

This document provides an analysis of private participation in water and sewerage projects in developing countries from 2001 to 2004, highlighting investment trends, regional activity, and the evolving landscape of private sector involvement in the sector.

Main Points

1. Investment Trends

• In 2004, total investment in water and sewerage projects with private participation reached nearly US$2 billion, marking a 36% increase compared to the previous year.
• The number of projects reaching financial closure increased by over 50% in 2004 compared to 2003.
• The recovery in 2004 represented a return to the 2002 activity level, reversing the steady decline since 1999.
• Most of the 2004 activity was concentrated in Chile, China, and Mexico, which accounted for 90% of investment flows and 70% of projects.

2. Regional Trends

• East Asia and Pacific: 11 projects reached financial closure, attracting US$470 million in investment, primarily in China for water treatment plants.
• Europe and Central Asia: 4 new projects, including management contracts in Armenia, the Czech Republic, and Hungary.
• Latin America: 13 new projects, with US$1.4 billion in investment, the highest since 2001. Most projects were in Chile (6 projects) and Mexico (4 projects).
• South Asia and Sub-Saharan Africa: No new private activity in 2004.
• Middle East and North Africa: Only one project was initiated, involving both a power plant and a water treatment plant.

3. Characteristics of Private Water Projects

• Water projects have historically attracted less private investment compared to other infrastructure sectors. From 1990 to 2004, water projects received only 5% of total private investment in infrastructure, amounting to US$41 billion.
• The annual average investment was US$2.7 billion, significantly lower than sector needs, which are estimated at US$6.7 billion per year to meet the Millennium Development Goals.
• Private water projects are often prone to contract disputes and renegotiations, with 55% of Latin American concessions renegotiated in the 1990s.
• 20 projects were canceled or became distressed between 1990 and 2004, representing 7% of all projects and 37% of investment commitments.
• Concessions (especially in water utilities) accounted for over 80% of these cancellations, including high-profile cases like Manila West Zone and Cochabamba in Bolivia, and six Argentine concessions affected by the 2002 peso crisis.

4. Project Size and Type

• The average project size fell from US$156 million in 1999 to US$59 million in 2004, indicating a shift toward smaller-scale projects.
• New concessions declined in both number and size after the 1995-2000 boom, accounting for 45% of investment flows in 2001-04 compared to 64% in the earlier period.
• Management contracts became more common, increasing from 10 to 18 in the same period.
• Water treatment plants showed greater resilience than water utilities, with investment flows increasing from US$0.6 billion to US$0.8 billion.

5. Country Coverage and New Entrants

• Private activity in water was concentrated in a few countries, with China, Chile, and Colombia remaining active throughout 2001-04.
• In 2001, 11 countries introduced their first private water project, including Armenia, Azerbaijan, Belize, Honduras, and Niger for water utilities, and Croatia, India, Namibia, Peru, and Vietnam for treatment plants.
• Ecuador was the only country to introduce both types of projects.
• In 2002, four countries (Guyana, Kosovo, Lebanon, Uganda) opened their water sectors to private participation through management contracts.
• In 2003, Tanzania introduced private participation via a lease contract for the Dar es Salaam water utility.
• By 2004, no new countries introduced private activity, but 53 developing economies had large-scale private participation in water and sanitation facilities.

6. Investors and Trends

• Developed country sponsors dominated investment in 2001-04, including Suez Environnement, Veolia Environnement, and RWE Thames.
• These sponsors focused on selected countries and sought to exit underperforming contracts.
• Local and regional sponsors began to play a more significant role, especially in China, where Malaysian firms won five contracts.
• The private water sector has seen a shift toward local companies, particularly in Latin America and Asia, with Chilean, Mexican, and Chinese firms taking on a larger share of projects.

Key Information

• The World Bank's PPI Project Database tracks private participation in infrastructure, including water and sewerage.
• The private sector's role in water projects is limited by the perception of water as a public good and political resistance to tariff increases.
• China was a major driver of private investment in water treatment, contributing 40% of total investment and half of the 46 treatment plants built between 2001 and 2004.
• The resilience of private activity in water treatment plants contrasts with the decline in utility concessions.

Conclusion

Despite the challenges and limited investment compared to other infrastructure sectors, the water and sewerage industry in developing countries saw a recovery in private participation in 2004, driven primarily by China, Chile, and Mexico. The concentration of activity in a few countries and the prevalence of small and medium-sized projects suggest a shift in private sector strategy. However, the high rate of contract renegotiations and cancellations raises concerns about the viability and sustainability of private involvement in the water sector.