# **ANNEX C: Independent Variables**

|**Variable**|**Source**|**Years**|**Description**|
|---|---|---|---|
|Number of contracts awarded<br>(Sum)|WATSAN PSP Database|1990-2004|Database compiled by the authors. Sources: World Bank PPI Database, Thomson<br>Financial, Global Water Intelligence and other media sources, Water Market China.<br>Cross-checked through interview with practitioners|
|Population (Average)|Economist Intelligence Unit|1990-2004||
|GDP per capita (Average)|Economist Intelligence Unit|1990-2004||
|ICRG Economic Risk|PRS Group International Country Risk<br>Guide|2004|Composite index of GDP, GDP growth, inflation, budget balance and current account<br>balance. The economic risk index scores range from 0-50 points.<br>See:**http://www.icrgonline.com/page.aspx?page=icrgmethods**<br>|
|Urban Coverage Gap|Authors|2002|The variable is constructed using data for urban population and access to improved<br>water supply.<br>Urban coverage gap = Urban population x (1-urban access to improved water supply)<br>Average urban population 1990-2004 (EIU)<br>Access to improved water supply (urban areas) 2002 (WHO JMP). See<br>**http://www.wssinfo.org/**<br>|
|Years since first infrastructure<br>PPP (No.)|World Bank PPI Database|1990-2004|Count of number of years between the first recorded private investment in<br>infrastructure recorded in the database and 2004. A first investment in 2004 receives a<br>score of 1. A first investment in 1990 receives a score of 15.|
|Rule of Law|World Bank Governance Indicators|2004|Measures the extent to which agents “have confidence in and abide by the rules of<br>society”. Includes: incidence of crime, the effectiveness and predictability of the<br>judiciary, and the enforceability of contracts. Scores are normalized around 0.<br>See:**http://www.worldbank.org/wbi/governance/govdata/**<br>|
|Government Effectiveness|World Bank Governance Indicators|2004|Measures the quality of public service provision, the quality of the bureaucracy, the<br>competence of civil servants, the independence of the civil service from political<br>pressures, and the credibility of the government’s commitment to policies. Scores are<br>normalized around 0.<br>See:**http://www.worldbank.org/wbi/governance/govdata/**<br>|
|Political Stability|World Bank Governance Indicators|2004|Measure perceptions of the likelihood that the government in power will be<br>destabilized or overthrown by possibly unconstitutional and/or violent means,<br>including domestic violence and terrorism. Scores are normalized around 0.<br>See:**http://www.worldbank.org/wbi/governance/govdata/**<br>|
|Control of Corruption|World Bank Governance Indicators|2004|Measures perceptions of corruption, defined as “the exercise of public power for<br>private gain.” Includes small-scale and ‘grand’ corruption. Scores are normalized<br>around 0.<br>See:**http://www.worldbank.org/wbi/governance/govdata/**<br>|
|Contract enforcement|World Bank Doing Business Database|2004|Average number of days to enforce a contract|
|ICRG Investment Profile|PRS Group International Country Risk<br>Guide|2004|Composite index reflecting contract viability, profits repatriation and payments delays.<br>Scores range from 0-15, with a score of 15 for the most attractive investment profile<br>See:**http://www.icrgonline.com/page.aspx?page=icrgmethods**|

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