Regulatory Instruments (Primary and Secondary Legislation, Licenses, Concessions)

Core References

Understanding Regulation: Theory, Strategy, and Practice
New York: Oxford University Press, 1999, Chapter 4.
Baldwin, Robert, and Martin Cave

Describes basic regulatory strategies, such as command and control, self-regulation, incentive regulation, and competition. Examines basic approaches that regulators use to facilitate competition.

Managing the Regulatory Process: Design, Concepts, Issues, and the Latin America and Caribbean Story
Washington, D.C.: The World Bank Group, 1999, Chapter 3.
Guasch, J. Luis, and Pablo Spiller

Describes the basic regulatory instruments and provides examples of where they have been used. Considers legislation, presidential decrees, and contracts.

Regulating Infrastructure: Monopoly, Contracts, and Discretion
Cambridge, MA: Harvard University Press, 2003, Chapters 1-2.
Gómez-Ibáñez, José

Views infrastructure regulation as a contracting problem and examines the choice of regulatory instrument. Considers contract completeness, private contracts, concession contracts, and discretionary regulation. Also examines variants of these contract types and hybrids.

Review of Electricity and Gas Licensing Regimes in NSW – Final Report
Independent Pricing and Regulatory Tribunal of New South Wales, January 2003.
IPART

Examines IPART’s licensing scheme, considering transparency, compliance and monitoring costs, and incentives.

Sectoral References

ELECTRICITY

Regulation by Contract: A New Way to Privatize Electricity Distribution?
Energy and Mining Sector Board Discussion Paper Series Paper no. 7, March 2003.
Bakovic, T., B. Tenenbaum, and R. Woolf

Describes a contracting approach to regulating electricity distribution companies. Identifies the key characteristics of this approach, how contracts deal with various financial issues, and how regulators deal with disputes.

TELECOMMUNICATIONS

ICT Regulation Toolkit
Washington, D.C.: infoDev and the International Telecommunications Union, 2007, Module 3.

Describes how to write and issue a license to provide telecommunications services, including the objectives of licensing, the relationship with other regulatory instruments and with trade agreements, licensing new entrants versus incumbents, designing and auctioning spectrum licenses, and how to maintain transparency.

Telecommunications Legislation in Transitional and Developing Economies
World Bank Technical Paper No. 489, October 2000.
Schwarz, Tim, and David Satola

Examines elements of telecommunications legislation for developing economies. Considers privatization, liberalization, WTO agreement, licensing, numbering, infrastructure sharing, competitive issues, property law, spectrum, and the structure and role of the regulatory agency.

TRANSPORTATION

Private Financing of Toll Roads
RMC Discussion Paper Series, number 117, World Bank, Washington, D.C., 1996.
Fisher, Gregory and Suman Babbar

Provides an overview of the issues and challenges related to private toll road development. Eight case studies are employed, covering a range of physical and market characteristics, country and concession environments, public-private risk sharing arrangements, and financial structures.

Concessions for Infrastructure: A Guide to Their Design and Award
Finance, Public Sector, and Infrastructure Network, WTP 399, World Bank, Washington, D.C., 1998.
Kerf, Michael et al.

Provides a guide to the complex range of issues and options related to design, award, implementation, monitoring, and modification of concessions. The main rationale for concessions is that they can facilitate the regulation of natural monopolies. They can be used to create competition for the market under conditions in which the service provider has significant market power.

Best Methods of Railway Restructuring and Privatization
CFS Discussion Paper Series, number 11, World Bank, Washington, D.C., 1995.
Kopicki, Ron and Louis Thompson

Provides context and guidance to restructure the railways. Addresses distinct structural issues associated with rail enterprise reform, design of specialized intermediary institutions that carry out much of the work of railway restructuring, and management techniques that are appropriately adapted to railway reform and restructuring. Focuses on “best” methods built on seven case studies of recent railway restructuring efforts: Japan National Railway, New Zealand Railways, Argentina Railways, Swedish Railways, British Railways, and railroads in the United States, and Canadian Railways.

Public and Private Sector Roles in the Supply of Transport Infrastructure and Services
Transportation Paper Series number 1, World Bank, Washington, D. C., 2004.
Amos, Paul

Provides a framework for identifying and assessing the different models for public and private roles in the transport sector. Highlights policy and regulatory issues which are important in judging the suitability of different models; and summarizes the range of instruments available.

Road Infrastructure Concession Practice in Europe
French Highway Directorate, Paris, 2001.
Bousquet, Franck and Alain Fayard

Reviews road infrastructure concessions in Europe with special emphasis on the role of public authorities as overseers of the concessions.

WATER

Water Toolkit Module 1: Selecting an Option for Private Sector Participation
Washington, D.C.: World Bank, 1997.
World Bank

Outlines the broad-brush analysis required to assess the need and potential for introducing private participation and selecting a mode of private sector participation.

New Designs for Water and Sanitation Transactions Making Private Sector Participation Work for the Poor
Washington, D.C.: The World Bank, undated.
World Bank

Examines regulatory instruments and policies for improving water and wastewater services to the poor. Considers elements of water reform, legal and policy frameworks, contracts, tariff design, and reform strategies.

Key Words

Contract regulation, License, Regulation, Legal frameworks, Franchise, Concession, Legislation, Statute

Case Studies

Managing the Regulatory Process: Design, Concepts, Issues, and the Latin America and Caribbean Story
Washington, D.C.: The World Bank Group, 1999, Chapter 4.
Guasch, J. Luis, and Pablo Spiller

Telecommunications Regulation in Jamaica
in Regulations, Institutions, and Commitment: Comparative Studies in Telecommunications, edited by Brian Levy and Pablo T. Spiller. Cambridge, U.K.: Cambridge University Press, 1996, pp. 36-78.
Spiller, Pablo T., and Clezly I. Sampson