Contracts governing delegation of public water and sanitation services from 1998 to 2010

Over 20 years ago, the “Sapin” law established a legal framework for contracts governing the delegation of public services which, until then, had not been regulated. The law required procedures ensuring transparency in the selection process and equal chances for all candidates, while providing the person representing the local government with some flexibility to negotiate with the candidates and to propose the best solution. From 1998 to 2010, the procedures for public-service delegation contracts were analysed annually by surveying local governments. The main results are that 1) renegotiated tariffs are generally lower, 2) contracts now focus more on performance and have shorter durations, and 3) the service offering, though limited in a highly concentrated sector, has progressed somewhat.