Before PPPs – Strategic Planning
2.3 What are the key issues?
Involving all players
Since any project, particularly a PPP project is about using
strengths and resources of the partners or parties concerned,
it is critically important to involve the private sector
and civil society in the process of strategic planning.
Although at this stage the contractor (the party that will
carry out the work) is not yet selected, it is still possible
to involve representatives of all the groups of stakeholders – for
example, professional associations, community-based and non-governmental
organisations, trade union and others. Their input will help
to make the strategic planning objective, realistic and more
likely to reach a desirable outcome.
Who is involved?
◊ Local government
◊ All relevant stakeholders
Although the municipality is playing the most important role
in undertaking and coordinating the strategic planning process,
it is often the private sector and/or the community that comes
up with the most innovative partnership ideas. Even though a
proposed idea may go beyond the original municipal plan, the
municipality should remain open to such initiatives.
Locating and linking PPPs in urban governance and management
A partnership does not exist in isolation. It is important
to develop the partnership in the context of municipal objectives,
other municipal development activities and reforms. The process
of developing a strategy creates a platform for decision-making
linked into broader municipal management, service delivery
and poverty-reduction goals. This will mean, for instance, that
the proposed strategy for water and sanitation services might
be developed alongside a strategy for solid waste management
or energy. The aim is to ensure that a coherent pattern of infrastructure
development occurs – one that recognises opportunities,
constraints and livelihood implications, as well as community
and municipal capacities.
In order to strengthen local governance, it is important to
understand how the PPP (if it is undertaken) will contribute
to broader governance objectives, and how those governance
principles are embodied in partnership approaches. For
- participation and consultation;
- integrated planning at the strategic level;
- financially sound management;
- accountable and transparent actions; and
- collaborative and innovative management.
In order to enhance poverty reduction through the PPP,
it is important to establish partnership processes
in the broader framework of municipal action for the poor. For instance in
- community mobilisation, empowerment and organisation;
- promoting demand-led initiatives;
- establishing incremental service improvement; and
- resolving land tenure issues.