Capitalizing on H2o: Examining the Potential Risks of Privatizing Puntland's Water Supply Companies

Abstract

This research delves into the intricate dynamics of water supply management in Puntland, exploring the potential risks and benefits associated with the privatization of water supply companies. The study is situated in a context where the government, once holding full control over water supply, now owns less than 20% of the industry. Rapid urbanization in Puntland presents a significant challenge, with a projected 67% of the population concentrated in urban centers within the next thirty years. The paper investigates the adherence of private water supply companies to international standards for water quality, addressing concerns about equitable access and profit-driven motivations. Advocating for a government-led strategic plan, the research proposes water pricing reforms to enhance efficiency and affordability. Set against the unique geographical and sociopolitical landscape of Puntland, the study evaluates the current state of water supply industries, shedding light on revenue disparities, household connections, pricing strategies, asset ownership, and reticulation costs.