Municipal governments provide many essential and basic infrastructure services, for example the delivery and management of solid waste, water, electricity, health, education, urban passenger transport, and street lighting services. And as the proportion of the world’s population living in urban areas continues to grow (according to the United Nations, 66 percent of the world’s population will live in urban areas by 2050 up from 54 percent in 2014 , municipalities will face increasing demand for new and improved infrastructure services.
Traditional sources of financing are often inadequate to fund local investment needs and municipal governments often lack the capacity and resources to deliver quality services alone. Engaging the private sector through public-private partnerships (PPPs) can provide part of the solution. Close to those who need services most and responding to local demand and need, PPPs in the municipal sector offer opportunities for local investors and financiers that may not be available from larger regional or national scale projects.