Opportunities and Challenges for Small Scale Private Service Providers in Electricity and Water Supply Evidence from Bangladesh, Cambodia, Kenya, and the Philippines
This study provides an in-depth look at Small Scale Private Service Providers (SPSPs) of electricity and water and is based on a recent firm-level survey conducted in Bangladesh, Cambodia, Kenya, and the Philippines. The findings of the survey analysis reveal a relatively diverse group of small enterprises with different ownership structures, business models, and levels of profitability. Services range from well-organized networks such as electric mini-grids and small private water networks (SPNs), to mobile distributors of water (tankers), and smaller operations such as battery charging stations, water kiosks, and standpipes. From the analysis of the different types of service providers, it is possible to identify some of the specific challenges facing the SPSPs and explore where substantial opportunities exist for scaling up. When considering the policy issues related to SPSPs, the obvious goals involve ensuring quality and safety standards for the services provided, at affordable prices. Given the diversity of SPSPs, however, approaches to achieving these goals will vary depending on specific country conditions and the type of provider. A few areas emerge from the study and the existing literature that would address some of the opportunities and challenges for small private service providers in electricity and water supply.