Foreword

There is undoubtedly some homework still to do in terms of ensuring that private sector participation can meet the needs of poor people. It is also evident that regardless of the mandate given to the public sector, poor communities are not always at the top of its agenda either. The more prepared the public sector can be before entering into a contract with the private sector, the more likely that the contract will live up to a formidable set of local government and local community expectations.

Through numerous case studies and solid analysis of what works and what doesn't, this book sheds significant light on how to take advantage of the strengths of the private sector. It places private sector participation within the entire picture of urban management, community participation and poverty alleviation programmes, understanding that the demands placed on municipal officials are vast and varied. Boosting the capacity of the public sector to partner serves everyone's interests - whether a private sector company that has just won a contract that more clearly defines the roles and responsibilities of each party; an NGO that is working alongside local government to facilitate service delivery in poor communities and requires the leeway to experiment; or poor communities themselves that require more informed, more conscientious and more responsive governance from their elected officials and civil servants.

Transforming local governments to be more responsive, whether they make use of private sector participation or not, is in some places a very daunting task. Efforts such as this sourcebook which provides simple, accessible guidance based on analysis of numerous case studies are to be applauded. While municipalities are generally prone to say that 'such and such approach may have worked for them, but it won't work for us', this book is not prescriptive - it does not say that 'this worked here and thus it will work there' - and that is part of its beauty. Instead, it provides a series of considerations and tools that will facilitate making both governance and government more effective. It allows municipalities to tailor their approach through more informed analysis of the problems that they face and the options that are possible.

The sourcebook achieves this by providing information on the constituent parts of a service public-private partnership (PPP) concerned with the poor. It discusses who is and can be involved in PPPs, broadening the net here to include the potential roles of NGOs and independent service providers as well as the large multinational companies discussed elsewhere. It considers what issues partnerships should address, stressing that municipal officials need to understand ingredients if they are to create PPPs that fulfil local objectives. It gives information on the implications of current organisational structures and contractual types but encourages municipal decision-makers to construct relevant PPPs able to respond to local needs and assets. It also looks behind the scenes at the skills needed on the public sector side to initiate, establish and sustain the complexities of a pro-poor PPP.

At WaterAid, we believe in the possibility of a world where basic needs like water and sanitation can be readily accessed. We know that, depending on the context, different stakeholders need to play their rightful role in making this happen. Given their mandate, their scope and their ability to integrate all the different programmes they manage, no group is more important than local governments. With that in mind, we highly recommend this piece of work and look forward to sharing it with the municipalities with which we work.

Ravi Narayanan 
Executive Director 

WaterAid