There is no empirical proof that private enterprises manage and operate facilities more efficiently than public ones. Instead of privatization, it is better to promote viable public-private partnerships and commercialization of services. The core businesses of water and sewage works should preferably be retained by a municipalityowned enterprise. In the selection of the mode(s) of water service implementation, one must consider the nature of the services, the long-term experiences, and transaction costs. The nature of water and sanitation service activity itself requires that long-term development should be considered in decision making. The institutional framework must be such that all parties benefit from cooperation. Whichever management or contract model is selected, the ownership of the utilities should preferably remain in the hands of municipalities whose decisions on services citizens should be able to influence through local democracy. The responsibility for arranging water services lies de facto with the public sector.
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