Benchmarking in the Latin American water sector: The case of Peru.
In their process of decentralization, deregulation and privatization of the infrastructure industry, Latin American countries are facing serious difficulties, particularly in the water sector. In Peru, 50% of water companies were experiencing financial losses eight years after a process of reform started. This study describes the implementation of a benchmarking scheme by the sector's regulatory agency, analyzes alternative measures of efficiency and estimates an efficiency frontier from a regression model of operating costs. Management culture and political interference were detected as important issues having an impact in this industry. Results may offer some guidance for future regulatory action in this emerging market.
Corton, M.L. (2003). Benchmarking in the Latin American water sector: The case of Peru. Utilities Policy, 11, 133-142. doi:10.1016/S0957-1787(03)00035-3
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