Finally, a private company brings economies of scale to a municipal facility, including bulk-purchasing discounts and greater efficiencies in plant operations such as electrical usage and facilities maintenance, all of which result in cost savings and help keep down the cost of providing municipal services to the citizens.
EPA estimates that more than $100 billion in capital investment is needed to bring all water and wastewater systems into compliance. Cities are having difficulties financing these improvements through traditional means. Privatization can be a viable solution. Understanding its benefits and limitations can help local governments find the right fix for their community's water and wastewater needs.
This article originally appeared in the June 1999 edition of Pollution Engineering magazine.