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About: Water privatization in Bucharest     Goto   Sponge   NotDistinct   Permalink

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The water and sewer system of Bucharest (Bucuresti in Romanian), the capital of Romania with a population of 2.3 million, was privatized in 2000 through a 25-year concession to the French company Veolia. The impact of the concession is mixed. During the first years almost 3,000 employees were laid off and water bills increased four-fold. There were improvements in service quality and efficiency, but most of the improvements occurred before privatization and improvements in service quality since privatization are not well documented. Privatization placed the burden of financing the renewal of the infrastructure directly on water consumers rather than on taxpayers. The private water utility owned by Veolia, Apa Nova București (Bucharest New Water), is considered one of the most profitable Ro