In Chile, water has been privatised. However, in order to make sure that access was still available to all strata of society, the privatisation was accompanied by a robust regulatory framework, including a system of direct subsidies for drinking water consumption and sewage services for low income households. This case thus illustrates that in case of privatisation, a direct subsidiary scheme should be considered.
The legal and regulatory framework of water utilities in Peru provides opportunities for local financing of investments. Despite this, the sector remains heavily dependent on public financing. Action has been taken by the World Bank to initiate a study investigating the barriers to local private funding. This case study illustrates that public loans, private loans and equity investment are appropriate to fund the necessary investment.