Comparative competition in the water supply sector in the Lao PDR

Water supply is a natural monopoly where options for competition are limited. However, it is possible to compare the performance of various operators as a driver for improved levels of service and efficiency. The decentralized urban water supply sector in the Lao PDR presents an ideal opportunity for comparative competition to be employed. The Water Supply Authority (WASA), the sector regulator, has initiated a comparative competition process whereby the performance of the 18 state owned enterprises are compared and published. The first performance report of 2002 highlighted many weaknesses and indications are that most operators have strived to improve their position for the 2003 report.