Concessions in the water sector

Abstract

Directive 93 38 EEC coordinating the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors, the so-called public procurement Directive, covers public works, supplies and services. The Directive, however, does not cover concessions but when the Council of Ministers adopted the Directive he also asked the European Commission to undertake a study on the different systems of concessions in the European Union. The European Commission has now issued a draft interpretative communication on concessions under Community law on public contracts. This communication will probably be the start for the European Commission to propose to harmonize Community legislation on concessions. The European Commission is also preparing the next multilateral round of World Trade Organization Services negotiations due to start in the year 2000; the common objective of these negotiations is a worldwide liberalisation of trade in services and a.o. environmental services. Finally new EU legislation on water quality will need for private financing for large-scale infrastructure projects and these different initiatives of the European Union brings us to the conclusion that the water sector will be progressively liberalized and that the private sector will be much more involved in the future in the supply of drinking water and the treatment of waste water.