At the beginning of the 21^st century, more people live in cities and towns than in rural areas. While this trend is likely to continue, it has been accompanied by an alarming growth in the incidence of poverty, especially in developing countries. In particular, the provision of basic urban services like water, sanitation, and energy represents a major urban environmental challenge.

Private-Public Partnerships (PPP) are an effective means of establishing cooperation between public and private actors and to bundle financial resources, know-how and expertise to address these urban environmental needs. PPPs offer alternatives to full privatization, combining the advantages of both the public and the private sector.

UNDPs Public-Private Partnerships for the Urban Environment (PPPUE) facility supports the development of such innovative partnerships at the local level. Focusing on assisting small and medium-sized cities, PPPUE works with all potential stakeholders, including investors, providers, regulators, users, and experts to meet the challenge of providing basic urban environmental services.

Participation, local ownership and shared responsibility are important aspects of PPPUEs innovative approach. This complementary approach with a unique international network, flexible design and a constant feedback mechanism contributes to the success of Public-Private Partnerships.

The management structure reflects PPPUEs arrangement as a multi-partner and multi-donor facility. While the PPPUE Consultative Group, consisting of contributing donors, UNDP senior managers, and a PPIAF representative provides strategic leadership, the PPPUE National Programmes are implemented by the respective UNDP Country Office in selected programme countries. The PPPUE Trust Fund allows donors to contribute to PPPUEs general activities or to specific projects.

PPPUE is designed as a complementary facility to the many existing initiatives and institutions, and works with a variety of partners at global, regional, and country levels. PPPUE offers numerous opportunities for partners, and invites interested parties to join the facility.

The Urban Environmental Challenge

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