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D21: Watertime case study – Grenoble, France

Emanuele Lobina
Senior Research Fellow, PSIRU, Business School, University of Greenwich
e.lobina@gre.ac.uk

10th March 2006

One of 29 WaterTime case studies on decision-making on water systems

www.watertime.net

Table of Contents

Acknowledgements 3

1 Introduction 4

2 City background 4

3 Water and wastewater undertaking 4

3.1 Background 4 3.2 Water and wastewater undertaking profile 4 3.3 Region profile 5 3.4 Performance indicators 6

4 Actors in water and wastewater services provision and production 6

5 Episodes 7

5.1 Award of lease contract to COGESE, 1989-1996 7 5.1.1 The impact of fiscal considerations prior to the award of the contracts: transfer of funds to the municipal budget and underinvestment 7 5.1.2 Inducements to award the lease contracts: corruption and fiscal considerations 8 5.1.3 Performance of the private operator and interest-seeking behaviour 9 5.2 Decision to renegotiate the water supply and sewerage lease contracts: 1995-2000 12 5.2.1 The renegotiated contracts in operation: still disadvantageous 14 5.3 Decision to remunicipalise water supply and sewerage operations: 2000 to date 17 5.3.1 Administrative court rulings: 1989-1999 17 5.3.2 Debate on and assessment of alternative options to semi-privatised contracts: 1998-2000 17 5.3.3 Assessment of alternative organisational forms of municipal undertaking 19 5.3.4 The organisational structure of the new water supply “régie” 19 5.3.5 The organisation of operations under the new régie REG 21 5.3.6 The economics of operations under the new régie 21 5.4 Decision to award a wastewater treatment contract for the metropolitan region of Grenoble: 1983 to date 25 5.4.1 The options:

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