11.  Governance and Accountability

11.1  PPPs require informed political decision-making. Accountable political bodies must understand the decisions they need to make and the consequences. Lack of such political understanding and support can inhibit decision-making.

11.2  A local framework for PPP decision-making is important. Within municipalities, decisions on PPPs involve financial commitments (budgetary) and must be made within appropriate decision-making channels and bodies.

11.3  In some cases PPP arrangements are treated as exceptional. Local governments should integrate and mainstream PPPs as the way to deliver services.

11.4  Local governments do not always appear to appreciate the full organizational consequences of PPPs - such as change to an enabling and regulatory role, downsizing, reskilling and so on.

11.5  As PPPs are multidimensional institutional set-ups, appropriate accountability frameworks are needed, allowing especially the needs of the urban poor to be expressed in the regulatory process.

11.6  Many local governments appear to lack capacity for regulating or managing contract compliance of PPPs once established. This should be increased and PPPs designed taking such capacity realities into account.

11.7  Corruption is a threat to PPPs. It increases the perceived risk for stakeholders. It can also lead to unsustainability and political/community resistance.