While large infrastructure projects grab the attention of central government, infrastructure investment is important also at the sub-national level. Sub-national entities and governments including municipalities and provinces provide many essential and basic infrastructure services, such as solid waste management, water and electricity, health care, education, urban passenger transport, street lighting. The traditional sources of financing are often inadequate to fund local and regional investment needs and local agencies often lack capacity and resources to deliver quality services. The sub-national entities often hold land in strategic locations which may be attractive to the private sector for commercial development. Private sector engagement through public-private partnership (PPP) projects at the provincial and local level can deliver infrastructure and service improvements at the local level whilst providing opportunities for the private sector.
The scope for municipal and sub-national PPP projects is vast and this section looks at the main sub-sectors where PPPs are being developed, as well as legal and regulatory frameworks at the subnational level.
Further Reading and Resources
A Preliminary Review of Trends in Small-Scale Public-Private Partnership Projects by Aijaz Ahmad and Shyamala Shukla, World Bank, August 2014.
Partnerships for Innovation in Access to Basic Services (Alianzas para la Innovación en Acceso a Servicios Básicos) Innovation and Technology for Development Centre/Technical University of Madrid (itdUPM) and the Multilateral Investment Fund (MIF) of the Inter-American Development Bank, July 2014.
Compendium on Public Private Partnerships in Urban Infrastructure – Case Studies, Ernst and Young in collaboration with the ￼Ministry of Urban Development of the Government of India and the Confederation of Indian Industry.
Toolkit for Pro-Poor Municipal PPPs, United Nation Development Program (UNDP), available in English, French and Spanish.
A tale of ...cities, PPPLRC Article by Jenny Chao and Victoria Rigby Delmond
Three ways to partner with cities and municipalities to mobilize private capital for infrastructure: A look at Latin America, PPPLRC Article by Sara Sigrist and Angela Maria Toro Botero
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