One specific risk for governments and the community is the potential for a private operator to fail to provide an adequate service, fail as a financial entity or simply fail because the resource it based its business on becomes unobtainable. This can be managed by developing a 'step-in' system to allow an existing utility to take control of the service if the private operator failed. Performance bonds paid up by the new entrant and deposited in trust can also cover the financial element of failure of new entrants.
Q10: | If any further safeguards need to be in place for managing private sector involvement, what would these look like? |