Volume 2, Issue 4, November 2017, Page: 162-174
The Efficiency and Institutional Performance of the Palestinian Water Service Providers
Abdullah Murrar, Faculty of Graduate Studies, Strategic Planning & Fundraising, Arab American University Jenin, Jenin, Palestine; Tariff & Licensing Specialist at Water Sector Regulatory Council, Ramallah, Palestine
Ahmad Sadaqa, Faculty of Graduate Studies, Faculty Teaching Committee, Arab American University Jenin, Jenin, Palestine
Khalid Rabayah, Faculty of Graduate Studies, Faculty Teaching Committee, Arab American University Jenin, Jenin, Palestine
Subhi Samhan, Research and Development Directorate, Palestinian Water Authority, Ramallah, Palestine
Abdelrahman Tamimi, Faculty of Graduate Studies, Faculty Teaching Committee, Arab American University Jenin, Jenin, Palestine; General Directorate, Palestinian Hydrology Group, Jerusalem, Palestine
Walid Sabbah, Faculty of Graduate Studies, Faculty Teaching Committee, Arab American University Jenin, Jenin, Palestine
Ihab Barghothi, Faculty of Graduate Studies, Faculty Teaching Committee, Arab American University Jenin, Jenin, Palestine
Received: Aug. 20, 2017;       Accepted: Sep. 1, 2017;       Published: Sep. 23, 2017
DOI: 10.11648/j.ajere.20170204.13      View  1947      Downloads  202
Abstract
The Palestinian Water Law 2014 calls for the amalgamation of the current water service providers into large regional utilities that are financially independent and have separate legal entities. This research, evaluates whether there are significant differences in the performance of the Palestinian water service providers based on their institutional structure and ownership. Thereafter, calculating the efficiency scores, in which the water providers may maximize the output for given level of input consumption. The multivariate analysis shows significant differences in non-revenue water, average price, and water consumption based on the structure. The water utilities perform better than municipalities when examining working ratio, gross profit, and collection efficiency. Wherein the Joint Service Councils have high sales price than utilities and municipalities; therefore, they are more profitable, more efficient in non-revenue water, and better in staff productivity. The results show more efficiency can be achieved during aggregation current water service providers into regional utilities. Amalgamating the providers into only four main water regional utilities – one in the north, middle, south, and Gaza will deliver less than current efficiency; and will double the cost or diminish half of overall output. Therefore, changing the current large and medium providers into regional utilities, and merging the current small providers into medium or large regional utilities will have more efficiency and capacity for improvement. Implications of these findings case by case through conducting further studies will add value for better merging efficiency and reforming process.
Keywords
Efficiency, Palestinian Water Law 2014, Performance, Regional Utilities, Structure
To cite this article
Abdullah Murrar, Ahmad Sadaqa, Khalid Rabayah, Subhi Samhan, Abdelrahman Tamimi, Walid Sabbah, Ihab Barghothi, The Efficiency and Institutional Performance of the Palestinian Water Service Providers, American Journal of Environmental and Resource Economics. Vol. 2, No. 4, 2017, pp. 162-174. doi: 10.11648/j.ajere.20170204.13
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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