Switching from outdated systems to modern technology is a win-win solution for many municipalities worldwide, but high upfront costs can be a deterrent. Attracting private capital via Public-Private Partnerships (PPPs) can help municipalities raise the funds needed to implement clever street lighting systems that secure efficiency and high technical standards in the long run.

As countries across Asia continue to prioritize investments in infrastructure in order to boost growth, subnational governments are also eager to improve the infrastructure facilities serving their communities. Indeed, as a few countries in South Asia and East Asia have shown, smaller PPPs at the municipal level can be as impactful as large national endeavors.

When seeking to engage private partners, one thinks of large, high-cost national infrastructure projects. But subnational governments are also effectively partnering with the private sector by leveraging assets, rethinking "infrastructure," and establishing mechanisms to give long-term security.

One cannot help but compare subnational and municipal PPPs to national level PPPs. Historically, PPP programs and frameworks have been focused on projects of national importance, which are politically riveting as well as, oftentimes, costly – involving central government agencies to assume liabilities or giving guarantees. By comparison, PPPs at the municipal level tend to be less splashy, smaller projects that quietly improve citizens’ daily lives: better street lighting, improved parking, clean markets, and bus shelters that keep commuters out of the rain. While these projects may not capture national attention, they are worthwhile infrastructure.   

Slides of this presentation

Alianza Público-Privada/ Sector de Acueducto y Alcantarillado en Colombia (ppt)

Video Presentation

Case study of Colombia - Alianza Público-Privada - Sector de Acueducto y Alcantarillado

Just as there are different types of public-private partnerships (PPPs), PPPs also exist in a variety of industry sectors. Each sector offers unique challenges and opportunities for PPPs due to differing legal, regulatory and investment considerations. Find more information about public private partnerships in the following sectors: