Water and sewer privatization hits the mass market

Article Abstract:

Local governments in the US are privatizing municipal water and sewer systems due to a lack of the capital needed to bring systems into compliance with stringent environmental regulations. Bond issues meet with voter resistance or are limited by caps on borrowing, and the threat of increased user fees leads government to consider privatization. Small rural and township systems have been among the first to be sold; more frequently, a municipality will hire a private firm to operte and maintain the system. Privatization has now hit the big city market with long-term contracts for the water system in Atlanta and the sewer system in Milwaukee; United Water Services won both. Atlanta faced daily fines from the federal government due to environmental non-compliance, and the estimated upgrade costs would have doubled water rates. The Milwaukee contract changed labor relations by giving employees the power to strike and introducing improved retirement plans.

United States, Government domestic functions, Sewer districts, United Water Services

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Water privatisations yet to mature

Article Abstract:

The public sector in Australia still controls large water and sewerage assets, and it is unlikely that states will privatize or sell these assets in the foreseeable future. Water projects that have come to the market so far have generally been build-own-operate-transfer or design-build-operate type concession deals. Privatizing water and sewerage assets is a politically sensitive issue, and there are also problems with finding finance for water projects. State-sponsored infrastructure must also address the challenge of the Federal government's present taxation structure.

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Water privatisations yet to mature

Article Abstract:

The privatization of Australian sewage and water treatment plants involves several political issues. Most of these plants are owned by local or state governments rather than the federal government. There are also environmental considerations, Aboriginal rights and tax issues to consider. These issues will cause privatization to take a long time.

Australia, Acquisitions & mergers, Mergers, acquisitions and divestments, Economic policy

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