When to partner with the private sector

Local governments can consider partnerships with the private sector where any of the following circumstances exist:

• the service or project cannot be provided with the financial resources or expertise of the local government alone

• a private partner would increase the quality or level of service from that which the local government could provide on its own

• a private partner would allow the service or project to be implemented sooner than if only the local government were involved

• there is support from the users of the service for the involvement of a private partner

• there is an opportunity for competition among prospective private partners

• there are no regulatory or legislative prohibitions to involving a private partner in the provision of services or a project

• the output of the service can be measured and priced easily

• he cost of the service or project can be recovered through the implementation of user fees

• the project or service provides an opportunity for innovation

• there is a track record of partnerships between local government and the private sector

• there are opportunities to foster economic development

If none of the above conditions exist, public private partnerships should not be considered.