Official: Worker participation key to private capital incorporation

Worker participation is key when incorporating private capital in the waterworks sector, according to Carlos Mladinic, president of Chile's state companies administrator (SEP). Mladinic was speaking at a workshop Thursday in the country's capital Santiago on the process of incorporating private capital into Chile's waterworks sector. The workshop was part of the third international conference on the efficient use and management of urban water (Efficient 2005). Although jobs cannot be guaranteed, negotiations must include employee safeguards in case of layoffs and firings, he said. Other keys to success include political resolve at the highest level (president) and informational campaigns, he said. Once the decision to incorporate the private sector has been made, bidding processes should be international to increase competitiveness and take advantage of new technologies and know-how. On this note, Mladinic said bidding processes have to be transparent, stressing the importance of opening data rooms and performing due diligence. He said that the process of incorporating the private sector in Chile, which has been done via BOTs, the sale of concessions, the selling of shares and the transfer of operating rights, resulted in the government collecting US$2.15bn.