Small scale water providers in Paraguay
Troyano, Fernando
While much remains to be learned on the dynamics of water supply under the free entry mode, its limitations and its economics, this report provides the first thorough analysis of this unique case of the small scale water providers in Paraguay (the aguateros). The author's insightful analysis of the incentive framework faced by the aguateros and its comparisons with the public monopoly already provides a good starting point for policy review and strategies for the sector. The main message that emerges from this case is undoubtedly the profitability of the water supply business even under a competitive environment and that appropriate legislation should be enacted to encourage the private sector to invest in the provision of water service.
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