There is a need to develop guidelines for PPP projects at a municipal and local level. Decentralisation of responsibilities and authority from the national government to the local government level is increasingly recognised as desirable and conducive to the delivery of infrastructure services to the local communities. In providing infrastructure services, the participatory approach that takes into account the views of and involves the local communities who are the ultimate end users are to be encouraged over the "top down" approach. Local governments, having greater links to their local communities, are in a better position to do this than national governments.5
The national level of government is most appropriate, on the other hand, for some infrastructure services such as construction of highways, airports, sea ports and power generation (as opposed to distribution). This is because they usually require very large capital investments. These infrastructure services are critical to the development of an economy and therefore, if well managed, would benefit the poor.
This guideline does not intend to prescribe how the responsibilities for different infrastructure services should be allocated between the different levels of government. The answer to this will depend on the institutional, political and social factors as much as on the actual project itself. Suffice to say that for any particular project, the allocation of responsibilities between the levels of government should be clear and corresponding authority for the subject matter should accompany the allocation of responsibility.
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5 Geoff Edmonds and Bjorn Johannssen, Building Local Government Capacity for Rural Infrastructure Works, ILO, 25.