The question of how to oversee initiatives such as regulation of Small-Scale Independent Provider without hampering their innovation potential has been studied by AFD and GRET through a common research and capitalisation program on the water sector. The present paper, which fits in this collaboration, is a practical case study on how Laotian authorities, with GRET assistance, have recently developed an innovative regulatory framework for PPP contracts signed with small entrepreneurs, in parallel with the more classic regulation of State-owned water enterprises. The paper focuses on identifying the main functions of water supply regulation and analyses the choices that have been made so far in this regulatory process, which is still under development.
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