Municipalities rarely have incentives systems to reward staff performance. Most personnel systems have rigidly defined scales of pay, and remuneration packages that are often on parity with those of other public servants. Pay, however, is reinforced by a range of allowances over and above those covering inflation. In some local government systems these allowances have been used to compensate for deteriorating pay scales. It may be highly desirable for a municipality to sustain its capacity building efforts through the introduction of incentives designed to reward the effective management of successful PPP arrangements.