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Tale of Two Cities: Water Supply in Hong Kong and Macau
Investigates the role of the private sector in improving the operating performance of a water utility. Compares the productivity of Water Supply Department and Macau's Water Supply Co. in supplying water to Hong Kong and Macau, respectively. Water service in Hong Kong is vertically separated into potable water supply, sewage treatment, and drainage, each carried out by different government departments. Identifies reasons for inefficiencies in Hong Kong's publicly owned water utility. Describes successful privatization experience for vertically integrated water utilities in the United Kingdom and other contractual models of water services provision in France and the United States. The findings provide a factual base for discussions on government policy and business strategy.