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Prospects of Privatization of Water Supply Services
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The aim of this research was to identify whether§Private Sector Participation (PSP) is an appropriate§tool for the Water Supply and Sanitation (WSS) sector§policy in Azerbaijani secondary towns, and if so, to§identify the conditions needed for sustainable PSP. §§This study demonstrated that PSP in WSS is§potentially beneficial for Azerbaijani secondary§towns. It was found that the most appropriate models§are so-called concession and BOOT , but current§investment risks make them unfeasible for now. These§investment risks need to be ameliorated and three§main reforms urgently implemented elaboration of a§coherent sector strategy, building an appropriate§sector structure with consideration of PSP prospects,§and rigid allocation of responsibilities between the§stakeholders. The ways for capacity building of both§regulators and municipalities are provided.
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