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Performance drivers and the public vs. private management debate on water sector companies : conclusions from the Portuguese case

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Since the introduction of Public Private Partnerships as a financing model that the discussion around its advantages has been intense. Using as example a strategic and fundamental sector as the water sector, we analyzed what are the main drivers for financial and service quality performance. Public databases for Portuguese water companies were used and performance levels computed, using an evaluation model, Finally, regression analysis was used in order to achieve conclusions on the variables that enhance performance, and also to access the best management model – public or private. Aligned with the findings of the literature review, no clear advantage in private management was found. Nevertheless, solid conclusions were found that longer periods of concession and shorter periods until the end of the concession yield higher performance levels.

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