(Re)municipalization of water

The push for greater private sector involvement in the implementation of SDG 6, the Sustainable Development Goal on water, flies in the face of growing evidence that the privatization of water and sanitation has been detrimental, especially to the most marginalized and vulnerable communities in the world.

Evidence shows that private investors have largely ignored the most underserved regions of the world while favouring more lucrative markets requiring less capital and promising greater returns. For instance, in Chile, where 95 percent of the water and sanitation services are in private hands, the State invested significant public funds in order to achieve extensive coverage before it was sold to private investors with the promise of a 7 percent return. Corporate utilities operating in Chile have not expanded networks outside profitable urban centres.

Source: Spotlight on Sustainable Development 2018.