CEU eTD Collection (2015); Harutyunyan, Naira Samvel: Transition from public to private provision of public services: the case of water sector in Armenia

CEU Electronic Theses and Dissertations, 2015
Author Harutyunyan, Naira Samvel
Title Transition from public to private provision of public services: the case of water sector in Armenia
Summary Recent water policy reforms worldwide are highlighted with an emphasized role of the private sector participation in provision of water services with prospects for enhancing sustainable development through water resource and service management strategies. The present PhD research aims to investigate the process and impacts of transition from public to private provision of water services in Armenia and to explore the aspects of the supply side on the level of water utility performance and the demand side on the level of end-users (households) ensuring proper consideration of social and environmental demands and legal and institutional implications. In particular, the empirical research focuses on the effects of governance modes on the sustainability performance of water utilities currently operating in Armenia under various forms of public-private partnerships. The analysis explores the directional, magnitude and evolution impacts of water privatization in Armenia along sustainability dimensions: environmental, social, and economic performance. Next, the research is focusing on the impacts of water privatization on households (water access and consumption profile, service quality, coping strategies, etc.). The research also seeks to examine the structural and process changes in the water sector as an aggregate mechanism of policies, legal and regulatory procedures, organizational structures, financing and impact mitigation mechanisms.
The research is based on the mixed method approach with the application of several methodological tools. The major methodological components include ex-post benchmarking method, conversational/stakeholder interviewing, document analysis, and the household survey  bottom-up participatory approach that puts people at the core of the research.
Research results show that intensive marketization trends with related structural changes reinforced privatization in public services. Conditional technical and financial support from donor institutions and urgency dictated by the deteriorating infrastructure made privatization a “no other option”. Even under the “forced” conditions, transition to the public-private provision of water services in Armenia had a positive influence on the sustainability performance of all water utilities. Armenian utilities also succeed in performing well internationally. However, the scale of impact of privatization depends on the initial state of the enterprise and the local context. Supportive legislation and regulation is needed for ensuring the attractiveness and incentives for the private sector participation and operation and for protecting consumers from monopoly abuse. Furthermore, although water supply services have been improved and people are generally satisfied with water services, there are still a number of service deficiencies that households face and try to cope with by implementing a number of measures that require additional costs and/or behavioural changes. Finally, after the high return and low risk low hanging fruits are reached during the first generation reforms to meet the most urgent needs, more efforts are required for enhancing long-term sustainability and effectiveness.
Keywords: privatization, transition, sustainability, ex-post assessment, water reforms, public services, infrastructure, household water consumption, coping strategy, willingness to pay, Armenia
Supervisor Ruben Mnatsakanian
Department Environment Sciences and Policy PhD
Full texthttps://www.etd.ceu.edu/2015/harutyunyan_naira.pdf

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