Municipal Wastewater Privatization: An Alternative with Solutions for Infrastructure Development, Environmental Compliance, and Improved Efficiency

Municipalities with wastewater operations face increasing requirements to maximize efficiency, implement capital improvements, and ensure environmental compliance. Privatization is a relatively unused alternative offering benefits in the areas of cost-effective operation, flexible financing, technology access, and compliance assurance. Recent executive direction and tax code changes have opened new doors for mutually beneficial public-private partnerships. Wastewater privatization has historically consisted of short-term contract agreements for treatment operations, but looming infrastructure recapitalization and development requirements have catalyzed an exploration of non-traditional alternatives that include private sector financing, development, and operation of entire wastewater systems. The purpose of this paper is to show why privatization must be considered, evaluate the different levels available, and generate an analytical aid for communities taking their first look at privatization opportunities. Two case-studies are presented as ground-breaking examples of success in wastewater privatization.