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  • Richard

Community? Public? Private?

Updated: Mar 10, 2019

Following on from the previous post I notice that a previous time I was thinking about this I came to:

Public utilities can so easily end up as rent-seeking opportunities for staff and their patrons ('producer capture' & isomorphic mimicry etc.) … who together deliver a 'just-enough' service to avoid too much challenge

Private utilities which have to access private capital for capex are too expensive

Private utilities as operators are apparently more expensive because they actually have to try and deliver an acceptable level of service - that service being more costly than governments normally allow

And also because Private utilities have to generate profit to reward their shareholders (and senior managers) for the risk they are undoubtedly taking they are more expensive, even if reaching their hoped-for efficiency savings ….

But also Private utilities without a concession contract (undaffordable as it includes capex responsibilities) do not have the power to make a long-lasting difference through the existing staff and funding possibilities .....

Unless the government allows the contractor to access national wealth to deliver optimised capex alongside the more efficient opex .... but that usually becomes a too high political risk

... But Algiers, with Suez' input, did it amazingly well ....

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