Can Privatization Deliver? : Infrastructure for Latin America

by Basanes, Federico; Uribe, Evamaria; Willig, Robert; Inter-American Development Bank

• ISBN13: 9781886938380
• ISBN10: 1886938385
• Format: Paperback
• Copyright: 1999-04-01
• Publisher: Inter-Amer Development Bank

Summary

Privatization of infrastructure for water, electricity, transportation, and communications services has gained momentum in Latin America and the Caribbean over the past decade. Success has often depended on the extent to which countries implement the institutional and regulatory reforms essential to attract private investment. This book analyzes the legal, regulatory, economic, and institutional issues that are key to smoothing the transition to privatized infrastructure. As the reform process reaches economies that are smaller and less developed, the emphasis is on establishing sound and credible rules that foster private initiative, preserve property rights, settle disputes, and protect contracts and consumers. Distinguished analysts from the private sector, academia, the banking community, and international multilateral institutions recommend reforms to promote private sector involvement in infrastructure and to bring national legal systems in line with international standards. Case studies examine privatization of electricity in Central America and water systems in Trinidad and Tobago and Chile.

Table of Contents

Foreword	iii
Enrique V. Iglesias
About the Authors	vii
Introduction	1	(8)
PART I: CAN PRIVATIZATION DELIVER? LEGAL AND INSTITUTIONAL ISSUES
Sustainable Privatization in Infrastructure: The Role of Legal and Regulatory Institutions	9	(24)
Janusz A. Ordover
Evamaria Uribe
Legal Obstacles and Incentives to Private Investment in Infrastructure Concessions	33	(46)
Alejandro P. Radzyminski
Effective, Low-Cost Systems to Enforce Infrastructure Contracts	79	(16)
Hugo Palacios Mejia
Regulation by Contract: A Lender's Perspective on Concession Regimes	95	(16)
Jacques Cook
Renegotiation of Concessions in the Latin American Context	111	(12)
Fred Aarons
Obstacles and Incentives to Private Infrastructure Investment and Financing	123	(10)
Gustavo Ramirez
Maria Angela Parra
Commitment and Governance in Infrastructure	133	(18)
Pablo T. Spiller
William Savedoff
Economic Principles to Guide Post-Privatization Governance	151	(22)
Robert Willig
PART II: INFRASTRUCTURE FOR LATIN AMERICA: EXPERIENCES IN WATER AND SEWERAGE AND ENERGY
Water and Sewerage Privatization and Reform	173	(44)
Sylvia Wenyon
Charles Jenne
Private Participation at the Subnational Level: Water and Sewerage Services in Colombia	217	(28)
Ruben Avendano
Federico Basanes
Private Participation in Water and Wastewater Services in Trinidad and Tobago	245	(10)
David Stiggers
Energy Reform and Privatization: Distilling the Signal from the Noise	255	(54)
Paul Hennemeyer
Incentives and Implications for Competition in Power Purchase Agreements in Central America	309
Richard Tomiak