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 (Vandemoortle, 2001). This means that the MDG targets could be satisfied without necessarily achieving access for the poorest sectors of society (Water Management Consultants Ltd., 2004). It is also clear that whatever the debates are around the achievement of the MDG, the impetus to meet them will continue to be a major investment driver for the next few years (e.g. Sommen, 2006). Among the other major challenges facing the water sector are the institutional changes required to modernise and strengthen the legal, policy and administrative arrangements that govern the sector. Water institutions are strongly influenced by factors such as resource endowment, demography, and science and technology. Private sector participation has a relatively strong presence in the delivery of water services in high- and middle-income countries; major cities have some form of involvement although smaller sizes of systems, particularly in LICs, are less attractive (OECD, 2000; Estache and Goicoechea, 2005). The vast majority of private contracts have been granted in urban areas. This trend is most marked in East Asia where there are some concessions and many Build-Operate-Transfer and service deals managed by international private companies. China has been perceived as a potential growth market and in other areas such as Latin America and Eastern Europe, national private enterprise plays and will continue to play an important role. By contrast, low-income and poor countries such as sub-Saharan Africa, South Asia and the Middle East are not attracting much interest from private capital other than in management contracts. Private sector participation is highly concentrated among a few trans-national corporations (TNCs) that are well established in the water sector, with ten companies - all based in OECD countries - holding the majority of contracts. One company for example has more