Whatever contractual type is used to introduce substantial private investment (concession, BOT, joint venture), it is critical to recognise that the technical and managerial skills needed to provide urban services are not found in the same firms that provide large amounts of investment capital, although many governments seek them as a package. For example, even the largest international water companies (such as Ondeo, Vivendi or Thames Water) have to go to international commercial banks and other financial institutions to fund their capital investment obligations under BOT or concession contracts.
This split between operating and financing skills has two major implications. First, it introduces yet another party into the partnership arrangement - one whose needs also have to be met. While urban services partnerships are usually negotiated first with the private operator, the lenders and other investors often require changes in the arrangement in exchange for their money. Second, if the municipality has the capacity to package the operating and financing skills itself, it may be able to arrange a more cost effective partnership by separating the two functions - for example, by pairing one or more local operators (including community groups) with a combination of local and international sources of investment capital (including public and not-for-profit sources).