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Municipal Finance and Public Private Partnerships

Rapid urbanization is swelling municipal populations globally, putting pressure on often old and insufficient infrastructure. Municipal budgets alone cannot keep pace with investment needs. A growing number of local governments are turning to Public-private Partnerships (PPPs) to deliver municipal services. If well designed and managed, PPPs can deliver quality, reliable, and cost-efficient infrastructure. This Municipal PPP Framework provides municipalities with a rigorous procedural framework and a set of practical tools to enable them to identify, prepare, deliver, and manage PPP projects. Designed to support municipal governments and staff, this Framework is written with their perspective in mind.

What is Municipal PPP?

PPPs are only one of several tools available to municipalities to deliver infrastructure services in a more efficient and fiscally effective manner and the structure of a PPP used for a specific project is flexible. Each approach has different characteristics and priorities. Figure 1 shows the relationship between a few of the more common structures. For the purposes of this Municipal PPP Framework, PPP includes different approaches to private entities partnering with municipal authorities to deliver infrastructure services, with the private sector making a long-term commitment and taking significant project risks. A municipal PPP is a PPP where the government entity is a municipal or local government body and where the public asset or service is a municipal asset or service.

Learn more about PPP

Gpsc Washington, DC Headquarters
E-mail: gpsc@worldbankgroup.org
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