Revisiting Private Water Proposals and Concessions of the 1870 and 1880s in Finland

• Published in: Water international Vol. 31; no. 3; pp. 288 - 294
• Main Authors: Juuti, Petri S., Katko, Tapio S., Hukka, Jarmo J.
• Format: Journal Article
• Language: English
• Published: Carbondale, IL Taylor & Francis Group 01.09.2006; International Water Resources Association
• Subjects: Buying; concession; Contracts; Earth sciences; Earth, ocean, space; Economics; Ethics; Exact sciences and technology; Finland; Hydrology. Hydrogeology; privatization; Proposals; Recession; Risk; Towns; Trams; water history; water policy; Water resources; Scandinavia; Finland; companies; feasibility studies; water resources; concession; privatization; Europe; water policy; Finland; investment; water history; history; policy
• ISSN: 0250-8060; 1941-1707
• DOI: 10.1080/02508060608691932

The paper questions the ethics of buying and reselling the concessions of water undertakings at the expense of consumer-owners. In Tampere, in 1866, an industrialist proposed a concession which would have provided him a good guaranteed return with the town assuming all risks. In Helsinki, in 1871, a concession of 75 years was signed with a private businessman. He did not even try to start operations but sold the concession further to a German company making a fortune. Due to the European-wide recession, the city bought back the concession. In 1885, the same entrepreneur got the horse-driven tram concession-tried this time to operate it but was unsuccessful. Some 110 years later several donors started to promote the idea of water concessions and other private operating contracts as a "new innovation." By the early 21 st century, it became clear that private water multinationals are not willing to take the risk of making such investments in developing and transition economies. Before making such strategic decisions cities should make proper feasibility studies and compare the pros and cons of various options.