A Study On Public Utilities Privatization Reform

As one of the network-based industries, urban sewage disposal has been invested by government and managed as an institution for a long time, and today it has accumulated many shortcomings. To improve efficiency and to ease financial pressure of government, it's inevitable to introduce competition mechanism and lead to the road of privatization. The paper takes the privatization reform in PuTian urban sewage disposal industry as an example. Firstly it analyzes the backgrounds of the privatization reform, then it discusses the achievements and difficulties in the privatization reform. At last the paper puts forward policy suggestions to conquer the challenges.The paper is divided into 5 parts.PartⅠintroduces the academic concept of privatization, concludes several characters of Public Utility, and briefly discusses several basic theories about privatization.Part II firstly described the operating status of sewage plant in PuTian city, then analyses the backgrounds of urban sewage disposal industry privatization reform in PuTian City, and also evaluates the feasibility of the privatization reform.Part III describes the preliminary achievements of urban sewage disposal industry privatization reform in PuTian city. In this part, the author particularly analyses how to handle the BOT-model, the Contracting-Operation-model, the Integration-drainage-model and the TOT-model into the urban sewage disposal industry privatization reform.Part IV probes into the challenges that the reform faced, such as inaccuracy understandings, construction funds bottlenecks, the problems about market competition, the lag of the network building, the lack of correlative laws and regulations, trust-crisis of government, etc.Part V puts forward policy suggestions for privatization reform in PuTian urban sewage disposal industry. The author thinks that to improve efficiencies in the supply of public goods and services is the privatization reforms value. Under the guidance of the value tropism, the author advances the proposals on how to establish a fair and effective market. At the end, the author makes sure that it's necessary to set up PuTian Water-Service-Industry Group as a perfect model in the future privatization reform.