The processes of skills transfer and technology transfer will also depend on the nature of the arrangement (and the contract) established, but the contract established should also depend on the institutional objectives. For example:
• The management contract is often used as a vehicle for skills transfer through the workplace. In this arrangement, public sector managers can work alongside those from the private sector, learning management and procedural tools and techniques.
• In Lesotho (see Box 8.4), the need for institutional strengthening was considered significant and advisors were unconvinced that a management contract would provide the level of skills transfer needed to take the Water and Sanitation Authority (WASA) forward to a stage at which it could launch a more ambitious PPP arrangement. Instead, a donor-funded technical assistance service contract will provide the foundation for future arrangements.
While it seems clear that some of the capacity building required to meet institutional objectives will require inputs from other actors such as consultants and NGOs, for the private sector partner, considering the municipality's institutional goals, the major questions are:
• How much will it cost to meet the municipality's institutional goals?
• How willing are they, and under what conditions are they able to initiate and then continue this investment?
• How they will be reimbursed for these activities?