In the first model (see Box 8.11 (a)), the NGO acts as a provider of services to communities without any formal relationship being established between it and the municipality or private partner. In this type of situation, an NGO may have already, independently, become established in a community, and a municipal-private partnership may operate quite separately in the sector. The NGO activities would therefore function alongside the larger-scale city-wide activit+ies of the PPPs. Relationships may be developed between the private sector (or the municipality) and the NGO, but they will be at the discretion of the various stakeholders. They are not obligatory. The NGO may not have any formal relationship with a community either, but if it is an established part of a support system, it may have established substantial commitment and an advocacy role. The community may ask, and expect, the NGO to represent their interests and advise them in a range of matters. This would typically include discussions with actors about service improvements and cost recovery.
The relationship may have no formal contractual status and involve no financial remuneration for the NGO. It is often of an indefinite duration, an ongoing commitment at the discretion of the NGO. There are no formal obligations on the private firm to listen to the advice of an NGO, and it can be easily by-passed. However, while the relationship may be informal, an important role is still performed and the NGO remains independent. It is able to act on its own and the community's behalf, and is not compromised or placed in conflicting roles.