Developing best practices for promoting private sector investment in infrastructure: Water supply.

This report is one of series of five commissioned by the ADB to identity and recomended best practices to be followed and specific steps to be taken, by ADB developing member countries in order to encourage both private setor investment and competition in infrastructure development. The study was financed through a 600,000 regional technical assistanc grant RETA 5753: Developing Best Practices for Promoting Private Sector Investment in Infrastructure. This report focuses on the water sector, the other reports cover the power, road, airport adn air traffic control, and port sector.

Water is an important resorces that is essential for human existence. An efficient and competitive water sector reduces water losse and improves the quality of water supply. This benefits water user and enhances economic activity. The report examines the features of water supply, the need and options for private sector participation, and the institutional structure and incentives. It also recommends a framework for moving to private sector participation in water supply. It is hoped that the report will help ADBs developing member countries attract well managed and cost effective private investment in the water sector.