Remunicipalization

Civil society movements have proven key to promoting remunicipalisation as a policy option, as well framing it as an opportunity to build socially desirable and environmentally sustainable public water models to benefit present and future generations.

Researchers have been playing a role in international exchange of expertise on how to achieve transparent, accountable and effective public water management following remunicipalisation.

As a result, some new public operators significantly increased investments in the water systems, such as in Grenoble (France), Buenos Aires (Argentina) and Arenys de Munt (Spain).

In turn, such longer term infrastructure development helps avoid future cost burdens associated with the types of health and environmental hazards experienced under privatisation, much of which was borne by the state in the past.

The utility increased investment in infrastructure dramatically, and extended training programmes for employees who work with poor neighbourhood residents to expand services.

This allows civil society to partake in decisions on the management of this basic public service, and to make operations responsive to the interests of local communities.

Each privatisation experience leaves significant structural, financial and ideological legacies that shape the direction of remunicipalisation and often constrain the potential for public sector success.

The deep asset deficit left by many private water companies means that municipalities are working with decrepit equipment and collapsing infrastructure that can be more expensive to repair than to replace and build anew.

The risk of having to pay hefty compensation can distort the decision-making process of local governments who are considering termination and remunicipalisation (e.g. Jakarta, Indonesia; Szeged, Hungary; Arezzo, Italy).

Proponents argue that remunicipalisation cannot be an unquestioned return to what was offered before privatisation; it must be an improvement on what is meant by public and an expansion of the democratic terms of engagement.

The regional institution CONGIAC in Catalonia also played a key role in Arenys de Munt’s remunicipalisation process from decision making to implementation.

Corporate Europe Observatory and the Transnational Institute have jointly developed a tracker to showcase cities, regions and countries that have rolled back privatisation and embarked on securing public water for all.

This initiative mirrors the private water industry practice of listing upcoming privatisations and public-private partnerships as opportunities for commercial expansion.