INTERNATIONAL CONFERENCE ON FRESHWATER BONN 37 DECEMBER 2001

1
INTERNATIONAL CONFERENCE ON FRESHWATER BONN
3-7 DECEMBER 2001

• Rodney Short
• Head of the Worldwide Projects Group
• Clifford Chance

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Water A Key to Sustainable Development

• Host Country Objectives
• Quality and quantity
• Environmentally sustainable
• Affordability

3
Water A Key to Sustainable Development

• Options Available
• Sale of current assets and companies in whole or
  part
• BOT, TOR, BOO structures

4
Water A Key to Sustainable Development

• Private Sector Objectives
• Transparent regulatory regime
• Adequate tariff levels
• Convertibility and transferability guarantees

5
Water A Key to Sustainable Development

• Private Sector Requirements
• Needs
• Commercially sound and viable
• Investor friendly environment
• Legal certainty
• Dispute resolution
• Assistance with permitting
• Political stability

6
Water A Key to Sustainable Development

• Risks
• Generally
• Expropriation or intervention
• Non-payment
• Excessive costs and bureaucracy

7
Water A Key to Sustainable Development

• Risks continued
• Water Specific
• Public health
• Leakage
• Quality
• Force Majeure

8
Water A Key to Sustainable Development

• Solutions
• Bidding transparency
• Anti corruption and discrimination
• Developed and legitimate legal system
• Company, investment tax, employment and
  environmental law and policy
• Minimal foreign exchange and local shareholder
  requirements

9
Water A Key to Sustainable Development

• Solutions continued
• Well structured water project
• Identifiable revenue stream
• Objective output criteria
• Fair allocation of risk between public/private
  sectors