97-Private Sector Participation in the Provision of Urban Water Supply - Examining the Options and Scope in Mumbai.

Abstract

The existing institutional arrangements for water supply in large cities like Mumbai are increasingly coming under pressure from rising demand, increasing complexity of operations and increasing expectation of the people and businesses. Alternate institutional arrangements for improving water management are increasingly sought and private sector participation, in this context, is going to aid in improved water management efficiency. While continuing with ownership of water supply and distribution system, the public agency can utilise the services of private water supplier in asset management and service delivery; in doing so, it can act as regulator of water service provision. This is perhaps an appropriate arrangement to large metropolitan cities wherein service quality consciousness among people is also high. In other words, it also provides scope for increasing value added services and revised pricing methods, thereby, increasing economic value of water. This paper examines the scope and potential for private sector participation in water management in Mumbai. It also discusses an operational framework for such partnership model while underlining the reform areas and directions.