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Victory for UK campaigners as Norway abandons controversial water privatisation scheme
26 February 2007
Norway has withdrawn from a controversial scheme that funds consultants to advise poor countries on the privatisation of public services including water, after a damning report by Britain's World Development Movement (WDM) and the Norwegian Association of International Water Studies (FIVAS). The fund, the Public Private Infrastructure Advisory Facility (PPIAF), continues to be supported by the UK government.
WDM water campaigner Vicky Cann said: “By withdrawing its financial and political support from PPIAF, Norway is sending an important signal to the other funders of PPIAF. PPIAF was a creation of the UK government and the World Bank but it has really had its day. Only this week we learnt of the collapse of yet another water privatisation scheme - this time in Guyana.”
“Britain should follow Norway's lead and halt its own contributions to PPIAF's water projects. We need to get out of the business of supporting privatisation and into the business of providing support where it's needed and it can do the most good. DFID should spend money on an international fund to enable public utilities to share advice and expertise on a not-for-profit basis.”
Britain's Department for International Development (DfID) has channelled over £30 million to the Public Private Infrastructure Advisory Facility (PPIAF) over the past seven years and was instrumental in its creation. The Norwegian government is the sixth largest contributor to PPIAF and has supported PPIAF since its creation in 1999 with at least £1.4 million.
Since its creation in 1999, the Public Private Infrastructure Advisory Facility has funded water privatisation consultants working in a total of 37 countries, from Afghanistan to Zambia. The WDM/ FIVAS report entitled Down the Drain contrasts donor support for PPIAF's privatisation consultants with the lack of targeted support to enable best practice to be shared between public utilities.
At a meeting in Oslo the Norwegian Ministry of Foreign Affairs (on Wednesday), told representatives of WDM and FIVAS that Norway's contributions to the fund would cease on the 30 June 2007.
ENDS
Nick Wright press officer
World Development Movement
66 Offley road, London SW9 0LS
0207 820 4900
Mobile: 07711 875345
Information for editors
[1] A WDM and FIVAS report entitled Down the Drain: How aid for water sector reform could be better spent investigates the activities of PPIAF and shows how the fund actively promotes water privatisation through the use of consultants. This is despite the fact the strategy of water privatisation is widely acknowledged to have failed, particularly in getting clean and affordable water to the poor. Download the Down the Drain report (pdf), or read a media briefing (pdf) which distils the main contents of the report.
[2] In at least 16 countries, PPIAF has sought to 'build consensus' for water privatisation projects. 'Building consensus' refers to activities that promote the benefits of privatisation or particular privatisation options and/or attempt to persuade sceptical members of governments, parliaments, business, trade unions, civil society and citizens that privatisation is in their interests. Arguably it is pro-privatisation propaganda. In addition, in at least 17 of the countries in which PPIAF has worked on water privatisation, donors have made their support conditional on privatisation.
[3] Torbjørn Urfjell, the political adviser for the Minister of Development, Erik Solheim, said during the meeting with WDM and FIVAS that the Ministry of Foreign Affairs no longer viewed the fund as a means to solve the problem of access to water for the poor. The decision can also be seen as following the intentions of the Government's Action Plan for Environment in Development Cooperation that wishes to see water as a common good, said Urfjell.
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