While service partnership objectives will vary (see Chapter 3), one of the primary principles of partnerships aiming to deliver benefits to the poor, must be equity. Yet, service partnerships aimed at physical objectives (such as improving the quality of services) and economic objectives (through greater management efficiency) can result in higher costs, at least in the short term. Without careful attention, this can exacerbate existing patterns of exclusion. Partnership champions need to develop the capacity to create partnerships that are effective as instruments for service delivery to the poor, and to utilise them to attain derived benefits - like job creation - for poor people. At the same time, they need to understand where adverse effects might arise and how to mitigate them.
Without explicit provision in the partnership framework (and in the contract), large-scale operators often do not have much incentive to cater for the needs of poorer consumers, as they are mostly able to achieve higher profit margins with less risk in non-poor communities. The scope and content of the partnership arrangement, and the inclusion of pro-poor actors, will begin to change the traditional form of PPP. The key mechanisms to ensure equitability have been addressed in Chapters 6 and 7. They include:
• differentiated service levels that make it possible for the poor to afford the services;
• alliances or partnerships with community-based service organisations, as these often specialise in delivering low-cost service;
• flexible payment options, such as phasing in payment for new connections or pre-paid meters; and
• appointing NGOs as advocates for the poor in the partnership arrangement.