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