Private participation in the delivery of Guinea's water supply services

Abstract

The Republic of Guinea has recently taken steps to restructure dramatically the urban water supply sector and to rehabilitate operations and improve financial performance. This paper outlines the theoretical arguments that are relevant to the project design, describes the institutional arrangements that were adopted, examines the key provisions of the legal documents, and explains how the major issues that arose during project preparation were addressed. It presents a general economic theory regarding the roles of the public and private sectors in providing public services. The main features and advantages of lease contracts are discussed, and the experience in Cote d'Ivoire with lease contracts and concessions for water supply is summarized. The recent history of the water supply sector in Guinea is also outlined. The paper discusses key features of the new institutional and financial arrangements with particular attention to the lease contractor selection process, the role of IDA funding, key provisions of the legal documents, and the resolution of uncertainties regarding the application of World Bank Group procurement policies to this case.Town Water Supply and Sanitation,Environmental Economics&Policies,Water Supply and Sanitation Governance and Institutions,Health Economics&Finance,Water and Industry