Do state holding companies facilitate private participation in the water sector?
Author InfoKerf, Michel Abstract When the Gambia, Guinea, and Senegal decided to involve the private sector in the provision of water services, they also established state holding companies – state-owned entities with exclusive or partial responsibilities for: a) owning infrastructure assets; b) planning and financing investments (replacing assets and expanding networks); c) regulating the activities of the private sector; and d) promoting public acceptance of private participation in the sector. In Cote d’Ivoire, by contrast, when private participation was introduced (in 1960), no state holding company was established. To determine whether state holding companies help private participation in the water sector succeed, the author reviews the four functions these entities are expected to perform in the Gambia, Guinea, and Senegal. In light of experience in all four countries, he examines whether, and under what circumstances, state holding companies might be the entities best suited for
