05). For example, in 1999 the urban centres of Madras, Poona, Bangalore and Hyderabad were successful in attracting private participation in the form of management contracts and concessions in the water sector. This trend has been continuing, with many other examples of the private sector gaining concessions to supply municipalities, industry and even rural areas in spite of sustained vocal opposition (India Resource Centre, 2003). There are concerns that the controversies surrounding the involvement of the private sector are hindering the search for solutions to the chronic water shortages experienced in most cities and urban areas. In Delhi for example, only 2.9 million m³ of water are supplied intermittently, as against a demand of 4.2 million m³ per day, to the 60% of the people who have water connections. For the rest they rely on illegal connections, tankers, standpipes or handpumps. Delhi's water board is planning to let pilot management concessions costing an estimated USD 246 million, retaining the right to set tariffs. However, in 2004 revenues covered only 60% of operating costs. To raise tarrifs would require accurate and reliable water meters which have not SO far been installed (The Economist, 2005). India has demonstrated that it can improve its water sector but this requires removing the obstacles to water being priced properly and developing a private financial infrastructure that can fund developments (Mulford, 2005). The government has acknowledged that financing will have to be based on user charges, and has introduced a range of incentives to encourage the private sector to participate and municipal corporations to make use of bond issues, although SO far on a limited scale (http://indiabudget.nic.in). INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 5. THE IMPACTS OF CHANGE ON THE LONG-TERM FUTURE DEMAND FOR WATER SECTOR INFRASTRUCTURE Europe In Europe the overall abstraction and consumption of water resources is believed to be sustainab