Hungary: water privatization act under preparation

In the first half of 2004, the Hungarian National Water Directorate will submit a draft law to parliament regulating private sector involvement in the water and wastewater sector. Present legislation prevents private companies (current market share is 20%) from gaining a majority stake in water and wastewater utilities which are now owned either by local municipalities or the state. The investment needed to comply with EU water directives [1], may force service providers to merge. There are now over 400 different water or wastewater service providers in Hungary. In their recent report [2], Public Services International Research Unit (PSIRU) provides an overview of water privatization initiatives in Central and Eastern Europe.

[2] Hall, D. ? [et al.] (2003). Water privatisation and restructuring in Central and Eastern Europe and NIS countries, 2002. London, UK, Public Services International Research Unit, University of Greenwich. http://www.psiru.org/reports/2003-03-W-CEENIS.do...

Contact: Rémai János, National Water Directorate, Minister of Environment and Water, Hungary, mailto: janos.remai@kovim.hu or kozonsir@mail.ktm.hu, http://www.ktm.hu/index_uk.htm

Source: Interfax-Europe, 13 May 2003

[1] Water policy in the European Union, http://europa.eu.int/comm/environment/water/inde...

Keywords

• Financing