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Water services, such as the domination of the market by a few multinational enterprises and higher prices to water users (IWA & UNEP, 2002). Thus, water is contested resource. But water is also often considered as a common pool resource because it is essential for all aspect of live to achieve a minimum standard of health and to undertaking productive activities (Mehta, 2002). Access to water is fundamental to survival and critical for reducing the prevalence of many water related diseases (Gleck et al.,2002). Therefore, water is just not basic needs. Access to safe and adequate water is a human right based on the criteria established in the 1948 United Declaration of Human Rights. The nature of water as a human right has several fundamental consequences. Most important amongst these is that national governments have an obligation to promote and protect the right to water so that it is not reduced to a more privilege of a left over subject to the market (CIEL, 2003). Consequently allocation of water should benefit the poor at an affordable price (Mehta, 2002). Water has also been treated traditionally as a natural right a right arising out of human nature historic conditions, basic needs or notions of justice. But the water rights have now been deterioriated. Many large water companies are taking over the public water utilities under the imposed policy of public-private partnership of the World Bank and other International Financial Institutions (IFIs). Water might soon become inaccessible and unaffordable for larger parts of the population due to the stimulation of the full cost recovery principles and elimination of subsidies (Shiva, 2002). 3.4 Models of Privatisation Privatisatiion can be partial, leading to so-called public-private partnership, or complete, leading to the total elimination of government responsibility for water system (divestiture). At a larger scale, private water companies build, own and operate water system and at the smallest scale, private water vendors and sales of water at small kiosk and shops provide many individuals and families with basic water supplies (Gleck et al.,2002).

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Gleck et al. (2002) in his book the New Economy of Water illustrated several different models of privatisation, i.e. public water corporations and corporatization, service and leasing contracts, concession models and fully private businesses. Those various private models are very much different from a fully public water system, which means that the decisions and funds are provided by public. Figure 3.1 illustrates models of public and private water providers characterized by the public and private nature of the assets and management. Divestiture or direct involvement of the private sector has put water under private management and established water as a fully private commodity, It is relatively recent phenomenon and the only existing completed major divestiture of drinking water supply and sanitation services is in England and Wales. Full privatisation under competitivw pressure is expected to increase efficiency, which will benefit the consumers. However, it is believed that there are some possible shortcomings of divestiture models such as the risk for government of conflict of interest problems. Private ownership of water eliminates the financing and tax advantages of public management and prices often increase to cover true costs. The advantages of pure form of privatisation may only be realized, if it is coupled with integrated regulations (Becher, 1999). In some cases, public water utilities may award private companies the responsibilities for operation and maintenance activities, general service contracts, and control over management of facilities, but ownership continues to reside in public hands (Gleck et al.,2002). The contract models have many variations, with various types and degrees of private sector involvement. A long-term contract, usually called full concession5 may last for 25-50 years and a short-term contract or partial concession may last for 10 15 years (e.g. management and lease contract). Variations of full concession include Bulid-Operate-Transfer (BOT), Bulid-OperateTrain-Transfer (BOTT), Build-Own-Operate-Transfer (BOOT), Bulid-Operate-Own (BOO) and Rehabilitate-Operate-Transfer (ROT). Table 3.1 describes the types of contracts in the water and sanitation sector.

Agreement in which a public authority awards to a private company, usually through a competitive qualification process, a fixed-term rigt to provide a service with characteristics of a monopoly within a defined geographical area.

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