Uncovering the Drivers of Utility Performance: Lessons from Latin America and the Caribbean on the Role of the Private Sector, Regulation, and Governance in the Power, Water, and Telecommunication Sectors

Uncovering the Drivers of Utility Performance: Lessons from Latin America and the Caribbean on the Role of the Private Sector, Regulation, and Governance in the Power, Water, and Telecommunication Sectors

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Product Details

ISBN-13: 9780821396605
Publisher: Bernan Distribution
Publication date: 07/03/2013
Series: Directions in Development
Pages: 254
Product dimensions: 6.80(w) x 9.90(h) x 0.70(d)

Table of Contents

Acknowledgments xi

About the Authors xiii

Abbreviations xv

Overview 1

Message 1: Even in regions such as LAC, where reform has led to sector performance improvements in electricity distribution, water and sanitation, and fixed telecommunications, there is still much room for improvement 3

Message 2: Both the government (as regulator and service provider), and the private sector (as service provider) can play active roles in improving sector performance 4

Message 3: Improving sector performance requires a holistic approach that is tailored to specific circumstances 6

Moving Forward 7

Notes 8

References 8

Chapter 1 Introduction 9

Analytical Framework and Scope 12

Notes 14

References 14

Chapter 2 Benchmarking Utility Performance 17

Why Benchmark Infrastructure Sectors? 17

Do Utilities with Private Sector Participation Outperform Public Utilities? 26

Conclusions 27

Notes 29

References 29

Chapter 3 Understanding the Impact of Private Sector Participation on the Performance of Utilities 31

Impact of Private Sector Participation on Electricity Distribution 33

Impact of Private Sector Participation on Water and Sewerage 42

Impact of Private Sector Participation on Fixed-Line Telecommunications 53

Impact of Contract Design 63

Conclusions 65

Notes 66

References 68

Chapter 4 Regulatory Institutional Design and Sector Performance 71

Benchmarking 72

Factors Accounting for Differences in Governance 80

Regulatory Governance and Sector Performance 86

Principal Components of the Governance of Regulatory Agencies 88

Conclusions 89

Notes 90

References 91

Chapter 5 Corporate Governance of State-Owned Enterprises 93

Methodology and Framework of Analysis 95

Results of Corporate Governance Benchmarking 96

Corporate Governance and Performance 108

Conclusion 110

Notes 112

References 113

Chapter 6 Other Determinants of Sector Performance 115

Corruption 115

Cost Recovery 116

Role of Civil Society 116

Contract Arrangements 117

Private Sector Participation and Renegotiation 117

Private Sector Participation and Reputation 118

Economies of Scope, Scale, and Density 118

Competition in the Telecommunication Sector 119

Conclusion 119

Notes 120

References 120

Chapter 7 Conclusions 123

Note 129

Appendix A Empirical Approach 131

References 132

Appendix B Data Sets 133

Performance Indicators Data Set 133

LAC Electricity Distribution Benchmarking Database 135

LAC Water and Sanitation Benchmarking Database 138

ITU World Telecommunication/ICT Indicators Database 141

Contract and Regulatory Characteristics Data Set 142

Regulatory Governance 143

Corporate Governance of State-Owned Enterprises 144

Notes 145

References 145

Appendix C Benchmarking Analysis 147

Electricity Distribution 147

Water and Sanitation Sector 156

Telecommunications Sector 166

Public versus Private Benchmarking Assessment 172

Appendix D Detailed Results of the Empirical Analysis 183

Reference 212

Appendix E Dimensions of Regulatory Governance 213

Appendix F Regulatory Governance and Performance 227

Appendix G Corporate Governance and Performance 233

Box

4.1 Multiagency Regulatory Schemes 77

Figures

1.1 Analytical Framework for Analyzing Sector Performance 12

1.2 Internal, Sectoral, and External Conditions Affecting Utility Performance 13

3.1 Energy Distribution before, during, and after Private Sector Participation 36

3.2 Electricity Coverage before and after Private Sector Participation 37

3.3 Employment in the Electricity Distribution Sector before, during, and after Private Sector Participation 37

3.4 Labor Productivity in Electricity Distribution before, during, and after Private Sector Participation 38

3.5 Distributional Losses in the Electricity Sector before, during, and after Private Sector Participation 40

3.6 Quality of Electricity Distribution before, during, and after Private Sector Participation 41

3.7 Indicators of Water and Sewerage Output and Coverage before, during, and after Private Sector Participation 44

3.8 Water Distribution before and after Private Sector Participation 47

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