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Evaluating commercialisation models in the water supply sector: a comparative case analysis of LWSC, Aguas Andinas and Johannesburg Water (2001-2014)

Most people in developing countries lack access to clean water, which leads to water-related diseases. The water supply challenges in many developing countries have persisted despite the water sector receiving considerable amount of support from the international organisations and cooperating partne...

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Main Author: Banda, Ason
Other Authors: Kabinga, Mundia
Format: Thesis
Language:English
Published: Research of GSB 2018
Subjects:
Development Finance
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access_status_str Open Access
author Banda, Ason
author2 Kabinga, Mundia
author_browse Banda, Ason
Kabinga, Mundia
author_facet Kabinga, Mundia
Banda, Ason
author_sort Banda, Ason
collection Thesis
description Most people in developing countries lack access to clean water, which leads to water-related diseases. The water supply challenges in many developing countries have persisted despite the water sector receiving considerable amount of support from the international organisations and cooperating partners. In this study I analysed different water reforms undertaken in developing market economies with a specific focus on Chile, South Africa and Zambia. The main research question I sought to address is whether commercialisation has proportionately improved water supply delivery in the aforementioned countries. The research employs a qualitative comparative case study approach of three Commercial Utilities (CUs), namely Lusaka Water and Sewerage Company (LWSC), Johannesburg Water and Aguas Andinas. Performance improvement was assessed using selected indicators under four broad criteria; accessibility, reliability, affordability and profitability for the period 2001 to 2014. The significant finding is that all CUs with different reform models had improved performance after commercialisation which is attributed to adoption of market principles and good corporate practices. The research established that private service delivery with strong state involvement outperformed public service delivery in terms of efficiency, accessibility, reliability and affordability. Privatised Aguas Andinas exhibited the highest level of performance in terms of accessibility, reliability, profitability and affordability. Johannesburg Water performed better than LWSC in terms of accessibility and reliability while LWSC performed better than Johannesburg Water in terms of affordability and profitability across the period 2001 to 2014. LWSC improved service in terms of accessibility, reliability, affordability and operational efficiency after corporatisation. The main conclusion is that even though Aguas Andinas has exhibited the highest level of performance, the strong performance is attributed to strong state involvement, tariff and subside systems, legal and institutional systems, management skills, sound corporate governance, customer orientation and innovation. Therefore, all the three models; privatisation, corporatisation and management contract, are suitable models for developing economies provided the state play its role and CUs adopt best practices.
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:33:28.738Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2018
publishDateRange 2018
publishDateSort 2018
publisher Research of GSB
publisherStr Research of GSB
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source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/28982 Evaluating commercialisation models in the water supply sector: a comparative case analysis of LWSC, Aguas Andinas and Johannesburg Water (2001-2014) Banda, Ason Kabinga, Mundia Development Finance Most people in developing countries lack access to clean water, which leads to water-related diseases. The water supply challenges in many developing countries have persisted despite the water sector receiving considerable amount of support from the international organisations and cooperating partners. In this study I analysed different water reforms undertaken in developing market economies with a specific focus on Chile, South Africa and Zambia. The main research question I sought to address is whether commercialisation has proportionately improved water supply delivery in the aforementioned countries. The research employs a qualitative comparative case study approach of three Commercial Utilities (CUs), namely Lusaka Water and Sewerage Company (LWSC), Johannesburg Water and Aguas Andinas. Performance improvement was assessed using selected indicators under four broad criteria; accessibility, reliability, affordability and profitability for the period 2001 to 2014. The significant finding is that all CUs with different reform models had improved performance after commercialisation which is attributed to adoption of market principles and good corporate practices. The research established that private service delivery with strong state involvement outperformed public service delivery in terms of efficiency, accessibility, reliability and affordability. Privatised Aguas Andinas exhibited the highest level of performance in terms of accessibility, reliability, profitability and affordability. Johannesburg Water performed better than LWSC in terms of accessibility and reliability while LWSC performed better than Johannesburg Water in terms of affordability and profitability across the period 2001 to 2014. LWSC improved service in terms of accessibility, reliability, affordability and operational efficiency after corporatisation. The main conclusion is that even though Aguas Andinas has exhibited the highest level of performance, the strong performance is attributed to strong state involvement, tariff and subside systems, legal and institutional systems, management skills, sound corporate governance, customer orientation and innovation. Therefore, all the three models; privatisation, corporatisation and management contract, are suitable models for developing economies provided the state play its role and CUs adopt best practices. 2018-11-02T09:31:33Z 2018-11-02T09:31:33Z 2016 Master Thesis Masters MCom http://hdl.handle.net/11427/28982 eng application/pdf Research of GSB Faculty of Commerce University of Cape Town
spellingShingle Development Finance
Banda, Ason
Evaluating commercialisation models in the water supply sector: a comparative case analysis of LWSC, Aguas Andinas and Johannesburg Water (2001-2014)
thesis_degree_str Master's
title Evaluating commercialisation models in the water supply sector: a comparative case analysis of LWSC, Aguas Andinas and Johannesburg Water (2001-2014)
title_full Evaluating commercialisation models in the water supply sector: a comparative case analysis of LWSC, Aguas Andinas and Johannesburg Water (2001-2014)
title_fullStr Evaluating commercialisation models in the water supply sector: a comparative case analysis of LWSC, Aguas Andinas and Johannesburg Water (2001-2014)
title_full_unstemmed Evaluating commercialisation models in the water supply sector: a comparative case analysis of LWSC, Aguas Andinas and Johannesburg Water (2001-2014)
title_short Evaluating commercialisation models in the water supply sector: a comparative case analysis of LWSC, Aguas Andinas and Johannesburg Water (2001-2014)
title_sort evaluating commercialisation models in the water supply sector a comparative case analysis of lwsc aguas andinas and johannesburg water 2001 2014
topic Development Finance
url http://hdl.handle.net/11427/28982
work_keys_str_mv AT bandaason evaluatingcommercialisationmodelsinthewatersupplysectoracomparativecaseanalysisoflwscaguasandinasandjohannesburgwater20012014

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