Born to die: lessons for the public sector from the failed water concession in Tumbes, Peru

While Latin America has witnessed mixed results in public–private partnerships, understanding the factors driving these varied outcomes requires closer examination. Public institutions are responsible for the design, procurement, and regulation of contracts, yet the focus tends to be almost entirely on the private operator. This paper provides an in-depth case study of the water concession in Tumbes, Peru, which was prematurely terminated in 2018. The examination of the quantitative and qualitative information on contract design, the regulatory framework, and performance indicators reveals that well-designed contracts, strong institutions, and a solid regulatory framework are crucial for successful private participation.