Assessment of structural changes of concessions in the water and sewerage sector

• Main Author: Todor Raychev
• Format: Article
• Language: Bulgarian
• Published: Knowledge and business 2020-06-01
• Series: Ikonomika i Kompûtʺrni Nauki
• Online Access: http://eknigibg.net/Volume6/Issue1/spisanie-br1-2020_pp.92-123.pdf

The goal of this scientific paper is, based upon the research of the structural changes of projects and investments for concessions of existing assets and in general for public-private partnerships (PPP) in the water and sewerage sector, to assess the redistribution of concession practices and flow of investments, by regions of the world. The research encompasses the period of 1991-2018, based upon the data of the World Bank, for countries with a low or medium income. The study used the statistical analysis methods of comparative analysis and the analysis of structural changes. The practical significance of the research will be expressed in the creation and testing of a method for conducting structural analysis of data sets in the area, for example, of PPPs in the sector of water and sewerage. Use of the integral coefficient of structural changes proved to be the suitable instrument for uncovering structural differences, including in depth ones, by doing a step-by-step decomposition of the individual sub-levels of the researched aggregates or databases. It is believed that this applied structural approach and the results received from the study will serve as an additional instrument for analyzing and tracking the behavior of certain market counter-agents. Structural analysis results will help in the creation of situational models for pre-crisis, crisis or post-crisis situations that will assist public authorities and local communities in making decisions concerning the restructuring of their water services (partially or fully privatized or nationalized, leasing or subcontracting of concessions, changes to the use of types of PPP), as well as helping potential or active water entrepreneur concessionaires by providing precise parameters for their investment intentions and/or business plans. As a result of the research of structural changes of concession projects and concession investments of existing assets for the period 2008-2011, it is discovered that the world financial and economic crisis had a stronger influence upon the structural changes of concession investments than on the concession projects. The significantly increasing structural changes reported during this global crisis period in five of the six surveys, by individual regions of the world, practically bring to the fore the effect of the results of the decisions, taken in response to the fears, doubts, demands and expectations, by management teams from the public and private sectors.