Impact of Private Sector Participation in the Provision of Water Services in Brazil: Empirical Analysis and Policy Recommendations

Abstract

Brazil has been experimenting with Private Sector Participation (PSP) in the water and sewage sector since the mid-nineties. In this paper we study past and ongoing experiences of private supply of water in Brazil and assess their impact on access (coverage). We use different estimation methods and datasets to investigate the existence of differences between municipalities where there is private participation in water supply and those where there is not. Our results suggest that PSP in Brazil has delivered higher access to water services and provide evidence that it has benefited poor households. The policy-making impact of our findings is significant, so we also offer some policy recommendations.