This document is the first report to be produced under the study entitled 'Small scale private sector participation in the rural water supply sector' (R8335). The purpose of the study is to enhance the effective participation of the small scale, rural-based, private sector in rural water supply service provision through the production and dissemination of best practice guidelines.
The study is investigating reform in the rural water supply sector. It aims to contribute to achieving sustainable rural water supplies through improvement of the institutional environment in which rural-based small and medium sized enterprises (SMEs) may become more numerous and more effective providers of services in the rural water sector. Since the reforms affecting the rural water sector have financial, legal and institutional dimensions, the study focuses on mechanisms that governments can use for building their own capacity to enable and regulate service providers in rural areas.
This report presents a review of published and unpublished material concerning SMEs in rural areas and financing and legal aspects of reform in the rural water sector. The review has been carried out at two levels: the international level and at country level, in the three countries in which the project is working - Ghana, Tanzania and Zambia.
The review forms an input to the Phase 1 Inception Report (R8335/1788/R2) of the study. The objective is to provide the basis for planning the survey work to be carried out in Phase 2-Surveys. This review and the surveys are intended to provide the supporting information on which the guidelines (to be produced in Phase 3-Analysis and Dissemination) will be based.