Reports: Water Privatization

The United Nations General Assembly declared in July 2010 that access to clean water and sanitation is an essential human right, calling on countries and organizations to help provide access for the 884 million people currently without safe drinking water and the more than 2.6 billion people without basic sanitation.

Clean drinking water and wastewater treatment are basic services that societies and governments provide. Water is a necessity for life, and safe water and sanitation are crucial for public health. In July 2010, the United Nations declared access to clean water and sanitation to be a human right. But recognizing the human right to water does not explain how to deliver this right to households. Even with this commitment to enhance water delivery and safety, an estimated 884 million people worldwide lack access to safe water, and 2.6 billion lack access to improved sanitation.

Europe Report: Clean drinking water and wastewater treatment are basic services that societies and governments provide. Water is a necessity for life, and safe water and sanitation are crucial for public health. In July 2010, the United Nations declared access to clean water and sanitation to be a human right. But recognizing the human right to water does not explain how to deliver this right to households. Even with this commitment to enhance water delivery and safety, an estimated 884 million people worldwide lack access to safe water, and 2.6 billion lack access to improved sanitation.

Veolia’s corporate profits plummeted in 2008 and remained languid through 2010. In the water division, the company has suffered major losses from municipalizations and has struggled to obtain new long-term privatizations. Despite its disappointing performance, the company continued many of the same strategies in 2011 that it had used over the preceding five years. It sought long-term, complex contracts to control entire municipal water and sewer systems. Such arrangements, however, seem to be increasingly rare for the company. For Veolia, complex deals were appealing because they involved less competition. The company and several of its peers have come under the scrutiny of anti-trust regulators in the European Union. Veolia has focused half of its new growth investments in Europe, particularly Eastern Europe, where it has the financial backing of multilateral lending institutions.

Confronted with daunting budget shortfalls following the recent economic downturn, various cities and towns across the country have considered cashing out their water utilities to generate revenue. But rather than ease fiscal pressures, the sale or lease of water assets would likely further weaken a locality’s long-term financial health and saddle consumers with debt.

“Public-Public Partnerships: A Backgrounder on Successful Water/Wastewater Re-engineering Programs” features four case studies of U.S. cities that kept ownership in public hands by reorganizing the operation and management of their own system successfully in order to save money, reward employees, and enhance services.