PPP for Municipal Service Provision and Local Economic Development

Report

Day / Time Thursday, June 22nd / 16:30 - 18:30


Event Description

This event will stimulate discussion and interaction between private sector, municipal and national government representatives, civil society and development partners on municipal PPPs. It will serve to advocate inclusive PPPs at the local level as an alternative approach to sustainable provision of basic services benefiting the poor and, hence, the local developmental agenda. The pursuit of this purpose will be supported through brief presentations of experiences from municipality representatives, presentation of PPP initiatives and their impacts on local development. Networking, sharing of experiences and information exchange will also be advanced. The representatives of the PPP practices from Africa and Asia will make brief presentations on their initiatives, experiences and impacts on local development and poverty reduction efforts. The collaborating partners will make brief presentations further analysing, clarifying, and complementing the above practices. This event will be facilitated by a representative from the Institute of Housing and Urban Development Studies of Rotterdam, the Netherlands, which has significant experience in local level PPP and capacity development on pro-poor PPP for local stakeholders. This session will be an opportunity for all partners involved in PPP at the local level to share their experiences in pro-poor PPP in basic services provision and discuss how PPPs can contribute to create local economies. It is, also, envisaged the session will pave the way for relevant sharing knowledge products and the development of a learning network of practitioners engaged in local level poverty reduction initiatives involving private sector and the initiation of joint initiatives.


Session Language

English

French


Speakers

Representative from Accra Metropolitan Assembly, City of Accra, Ghana .

Representative from Aguas de Mozambique, private operator providing water under a lease arrangement

Representative from Marikina Municipality, the Philippines


Host Organization

UNDP Public-Private Partnerships for the Urban Environment (PPPUE), UNDP Africa-Asia Eco-Partnership Programme (AAEP), The Institute for Housing and Urban Development Studies (IHS), WASTE and UN-HABITAT


Host Organization Description

The Public-Private Partnerships for the Urban Environment (PPPUE) programme is UNDP's global and multi-partner initiative in support of alleviating poverty through public-private partnerships at the local level throughout the developing world. The core goal of the programme is to increase the access of the urban poor to basic services such as water, sanitation, solid waste management and decentralised energy services provision by promoting inclusive partnerships between local government, business and communities. The Africa-Asia Eco Partnership Programme (AAEP) is an inter-regional programme of the United Nations Development Programme (UNDP) with a special emphasis on South-South paradigm. The programme is aimed to further support selected African and Asian cities in establishing environmentally sustainable urban societies through shared experiences and by promoting inter-city and intra-city partnerships. CIDA-Dhaka Environment Programme (DEP): It is a one generation Strategy to save the city of Dhaka, the capital of Bangladesh from Environmental Catastrophe. Dhaka is expected to have a population of nearly 23 million people by 2020 making it the second biggest city in the world. Implementation of DEP is expected to save the city from an environmental catastrophe as its current infrastructure is capable of supporting a population of 10 million at best and already has a population of 13 million. DEP addresses various aspects of urban habitat. IHS is a leading international organization in applied knowledge for urban development. We provide advice, training and institutional support for managing cities worldwide. In our experience, public-private partnerships can significantly improve urban service delivery, provided the partnerships are well conceptualised, structured and managed. We assist public and private clients, and those supporting service partnerships, with professional advice linked to the transfer of knowledge and institutional capability. Our advice and tailored training is based on international experience and research, translated to the local conditions and circumstances of our clients.


Website

www.pppue.undp.org/

www.ihs.nl

Report

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Title of Event:



Name of Organisation:







Date and time of the session:

Public Private Partnerships for municipal services provision and local economic development"

UNDP Public Private Partnerships for the Urban Environment (PPPUE), the UNDP South-South Unit Africa Asia Eco-Partnership Programme (AAEP), the Institute for Housing and Urban Development Studies (IHS), UN Habitat, Canadian International Development Agency (CIDA).

Thursday 22 June 2006, 16:30 to 18:30


Key Highlights

  1. Estimated no of participants: 120
  2. Stakeholder group representation at the event: Municipal Governments, National Governments, Members of Parliament, Private financiers, Private utilities, Private consultants, United Nations Agencies, Academia, NGOs
  3. What were the expected objectives: ( i) To stimulate interaction between the private sector, municipal and national government representatives, and development partners on municipal PPPs; (ii) To advocate for PPPs at the local level as an alternative approach to sustainable provision of basic services to the poor and, hence, the advancement of the local development agenda; (iii)To present PPP cases which illustrate a spectrum of approaches, experiences and evolution to demonstrate the flexibility required in defining and implementing PPP for the poor.
  4. What did the networking event achieve: Vibrant discussions on the roles and responsibilities of the various actors in a PPP. The discussions moved the participants from extremely opposed positions on involvement of the private sector in the lives of the poor to a position of much greater understanding of the concerns and intentions of each of the parties considering PPP in the development context. It is this increased understanding which will allow PPP projects in the future to draw on an increasing breadth of expertise to enhance their effectiveness in meeting the needs of the poor.

The networking event also highlighted the need for capacity development for all stakeholders involved in a PPP to ensure a level playing field which will ensure all parties enjoy maximum benefit from the project.

2. What were the core issues identified in your event as they relate to the theme and sub-themes of WUFIII?

•  The event and its outcomes most strongly relate to sub theme 2 - Partnership and Finance, Municipal Finance: Innovation and Collaboration

3. What were the main points raised by panellists and participants in relation to these different issues? What new ideas have been generated as a result of the discussion?

Discussions highlighted the following issues:

•  PPP covers a wide range of projects involving partners from formal or informal business, central or local government, the NGO sector and donors. Often the private sector partner may appear to be a community body or even a non-profit organisation, on closer inspection, fee paying and considerations of financial sustainability with or without net profit can highlight the private enterprise at the foundation of the work.

•  The partnership can be considered to be a true PPP when the relationship between the government body and the private entity is formalised in a contractual agreement. However, each partnership solution requires a unique approach to structuring each relationship and each contract.

•  It is essential that the voice of the poor be clearly heard throughout the design and implementation of a PPP no matter how large or small, formal or informal a project. Without this interaction poverty alleviation targets will not be met.

•  The poor are able and willing to pay for the type and quality of services they want. The challenge remains as to how to structure each unique partnership to deliver tangible results in service delivery.

4. What process steps have been identified in your event that could help turn ideas into operational reality?

•  Government must continue to be held accountable for service provision under a PPP.

•  Governments must develop and maintain a strong enabling environment for pro poor PPP.

•  All parties involved in a PPP, including poor communities, must be brought together throughout the process to ensure that each understands the intentions, requirements and concerns of partners.

•  Training should be provided to partners to ensure that they all have the skills and knowledge required to fully engage in and shape the process of designing and implementing the service delivery project. The poor too can contribute to PPP initiative as much as the other partners, usually when they are organized and united. Hence capacity building of the poor communities along with local government representatives is an important element and a valuable investment in ensuring sustainable pro-poor PPP for local development.

•  Support must be provided to those engaged in redirecting large PPPs towards the poor and to those aiming to enhance their informal pro-poor partnerships between government and business using formal contracts and arrangements. Without such support neither approach will fully realize the potential of their existing relationships.

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