Dealing with Post-Decentralisation Implications in the Water Sector
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DEALING WITH POST-DECENTRALISATION IMPLICATIONS IN THE WATER SECTOR BASED ON COUNTRY EXPERIENCE CASES ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of the European Communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation‟s statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards, as agreed by its members. © OECD 2009 No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to OECD Publishing: [email protected] or by fax (33 1) 45 24 13 91. Permission to photocopy a portion of this work should be addressed to Centre français d‟exploitation du droit de copie, 20, rue des Grands-Augustins, 75006 Paris, France ([email protected]). 2 TABLE OF CONTENT ACKNOWLEDGEMENTS ............................................................................................................................ 6 INTRODUCTION ........................................................................................................................................... 7 CONCEPTUAL INTRODUCTION................................................................................................................ 9 Current topics and political issues in the water sector ................................................................................. 9 A literature overview: decentralisation and fragmentation of the water sector ......................................... 10 Inter-municipal cooperation – an alternative for the delivery of public services ....................................... 12 CASE STUDY AUSTRIA ............................................................................................................................ 16 General information ................................................................................................................................... 16 Regulatory and legal background .............................................................................................................. 16 Water legislation .................................................................................................................................... 16 Legal framework for water support system ............................................................................................ 17 Federal regulatory framework for water tariffs ...................................................................................... 18 Institutional set-up in the water sector ....................................................................................................... 18 Asset ownership ..................................................................................................................................... 18 Responsibilities of authorities ................................................................................................................ 19 Economics of the sector ............................................................................................................................. 19 Water tariffs............................................................................................................................................ 19 Support scheme in the Austrian water sector ............................................................................................. 21 Investment in the water sector ................................................................................................................... 23 Annual costs of water services ................................................................................................................... 24 Forms of inter-municipal cooperation in Austria ....................................................................................... 28 Inter-municipal cooperation within the framework of county-wide or national associations of utilities28 By (water) law – associations of municipalities and provincial enterprises ........................................... 28 Austrian Water and Waste Management Association (ÖWAV) and Austrian Association for Gas and Water (ÖVGW) ...................................................................................................................................... 30 Cooperation of wastewater treatment plan operators („Kläranlagennachbarschaft‟) ............................. 30 Inter-municipal service provision based on contracts ............................................................................ 31 Summary .................................................................................................................................................... 31 References .................................................................................................................................................. 32 CASE STUDY FRANCE .............................................................................................................................. 33 General Information ................................................................................................................................... 33 Regulatory and legal framework ................................................................................................................ 33 Constitutional law .................................................................................................................................. 33 Inter-municipal cooperation ................................................................................................................... 33 Water law ............................................................................................................................................... 36 Institutional set-up ..................................................................................................................................... 36 3 Economics of the sector ............................................................................................................................. 38 General figures ....................................................................................................................................... 38 Inter-municipal cooperation ................................................................................................................... 38 Water pricing .......................................................................................................................................... 39 Investments for rehabilitation and extension of water infrastructure ..................................................... 41 Financing of water infrastructure ........................................................................................................... 41 Subsidy System ...................................................................................................................................... 41 Summary and concluding remarks ............................................................................................................. 42 References .................................................................................................................................................. 43 CASE STUDY POLAND ............................................................................................................................. 45 General information ................................................................................................................................... 45 The legal and regulatory framework .......................................................................................................... 45 Legal issues ................................................................................................................................................ 46 The regulatory framework of the water sector ........................................................................................... 47 Institutional set-up ..................................................................................................................................... 48 Inter-municipal cooperation ....................................................................................................................... 49 Economics of the sector ............................................................................................................................. 51 Water tariffs...........................................................................................................................................