Sub-national and Municipal PPPs

Photo Credit: The World Bank

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 sub-national level.

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Updated: June 21, 2022