The French Model and Water Challenges in Developing Countries: Evidence from Jakarta and Manila

16 Pages Posted: 7 Oct 2013 Last revised: 3 Apr 2014

See all articles by Xun Wu

Xun Wu

Division of Social Science and Division of Environment, Hong Kong University of Science and Technology

Ching Leong

National University of Singapore - Lee Kuan Yew School of Public Policy

Date Written: August 1, 2013

Abstract

Despite the growing need for private sector participation (PSP) in the water sector, private sector investments in the water sector have experienced a downturn in recent years, especially concession projects, which accounted for nearly 80 percent of all PSP projects in urban water utilities from 1990 to 2005. This paper traces the concession to its origin — the French model — and focuses on the challenges of transferring the model into the context of developing countries, by comparing two cases of concession projects in Jakarta and Manila. This comparative analysis suggests that although the French model appears a compelling choice because of its promise of attracting capital investments and improving efficiency, successful applications of the model may require substantial modifications to its original form in order to adapt to prevailing legal and social norms as well as to local governance capacity.

Keywords: Public Private Partnership, Privatization, Urban Water Supply, Manila, Jakarta

Suggested Citation

Wu, Xun and Leong, Ching, The French Model and Water Challenges in Developing Countries: Evidence from Jakarta and Manila (August 1, 2013). Policy & Society, Vol. 32(2), 2013, Lee Kuan Yew School of Public Policy Research Paper No. 13-13 IWP, Available at SSRN: https://ssrn.com/abstract=2336821

Xun Wu (Contact Author)

Division of Social Science and Division of Environment, Hong Kong University of Science and Technology ( email )

4054 LSK, HKUST
Clear Water Bay
Hong Kong, 999999

Ching Leong

National University of Singapore - Lee Kuan Yew School of Public Policy ( email )

Singapore 117591
Singapore

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