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	Tuesday 14, November 2000

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Mayors, public officials and private sector representatives from 25 countries spanning four continents agreed on the need to facilitate private sector involvement in urban environmental services in cities in the developing world at a recent conference in Berlin.

Continuing urban growth and deterioration of the existing urban infrastructure in developing nations require investments that far exceed the financial capacity of the public sector.

Forty per cent of people in developing countries now live in urban areas, and by 2015 the proportion will rise to one half. Better services are especially vital for improving the lives of the poor in urban areas.

Jointly sponsored by UNDP and Carl Duisberg Gesellschaft e.V. (CDG) on behalf of the German Government, the conference on Public-Private Partnerships for Urban Environmental Services, held on 26-27 October, drew 125 participants to explore challenges and recipes for success for private sector participation in urban environmental services in Africa, Asia and Latin America. The event focused on partnerships to finance water and waste projects.

Mayors and municipal officials participating recognized that partnerships with the private sector can offer solutions for providing services which most directly impact the living conditions of the urban poor, including water and sanitation, solid waste management, and energy services.

"We have seen good and bad examples of public-private partnerships," commented Dionisio Cherwa, Mayor of Nampula, Mozambique. "When I return to Nampula, we will discuss the lessons with our local businesses and start building partnerships."

Dr. Jürgen Wummel, Director of Business Development with Kommunale Wasserwerke Leipzig in Germany, said, "As a small company, we were happy to learn about more opportunities in developing countries and will follow up on the contacts." Gideon Mung'aro, Mayor of Mallndi, Kenya, said, "Companies in our countries need to learn a great deal to become competitive." Both agree that teaming up with international companies is a good way for developing country companies to do this.

Municipal governments face the challenge of finding ways to fulfil their responsibility to provide basic services while also meeting the needs of private partners. This implies a sometimes difficult transition for many governments from suppliers and managers of services to enablers and regulators working with private companies.

Several key points emerged during the meeting:

A strong legal and institutional environment to promote and regulate public-private partnerships at the local level is essential.
Improving access to local financing to make local investments in the service sector sustainable over the long-term is important.
There is a danger that national governments are negotiating public-private partnership contracts without involving local governments and other local parties such as NGOs and trade unions.
An Internet-based network should be established to allow sharing of experiences and knowledge on public-private partnerships.
Both the public and private sectors should be prepared to take on a fair share of the risk associated with partnerships.
Rates charged customers should cover at least the operation and maintenance costs of services but not necessarily the entire investment costs.

The conference recommended establishing an Internet forum for all parties to exchange information and ideas on projects. Participants also called for development of an online marketplace where local authorities from developing countries can present projects to international investors and companies can introduce products and services.

UNDP's Public-Private Partnerships for the Urban Environment (PPPUE), co-sponsor of the event, is a multi-partner, multi-donor facility which promotes cooperation between governments, private businesses and civil society to provide basic services vital for improving living conditions of the urban poor. CDG is a German non-profit organisation dedicated to international management training and human resource development.

For further information contact Peter Grohmann, Global Task Manager, Public-Private Partnerships for the Urban Environment, UNDP.

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