The Manila Water Concession

Book excerpt: In January 1997 the Government of the Philippines awarded two long-term concession contracts to private consortia, to operate the water and wastewater services in Greater Manila, an area with a population of 11 million. The winning bidders accepted contractual obligations to expand services faster than in the past, and offered rebates on the tariffs of the incumbent public utility. This diary of a key player in the government team that steered the Manila transaction, demonstrates principles that will be valid wherever such privatisations might occur: "the importance of sustained high-level political commitment; the need for a strong and dedicated government team, supported by experienced advisors; the value of a transparent bidding process; and the need to communicate and consult broadly" (from foreword)