Rapid urbanization is placing growing demands on governments and sub-national entities in the developing world to deliver essential services to an ever-increasing number of people. Decentralization programs in many countries are forcing cities to become responsible for meeting these challenges, but city budgets alone are usually unable to do so. Many cities, regional governments, and utilities are beginning to view the private sector as a source of needed infrastructure financing and management expertise, and public-private partnerships (PPPs) as well as options for directly accessing private finance from banks or bond markets are increasingly being seen as key elements in the overall infrastructure delivery strategies of cities.
PPIAF is uniquely qualified to help municipal officials and cities respond to some of the key challenges associated with urbanization and decentralization. PPIAF helps build the capacity of government officials to prepare and enter into PPP arrangements with private partners. This work can include reforms to institutions, policies, and legal/regulatory frameworks necessary for sustainable PPPs. Through its Sub-National Technical Assistance (SNTA) program, PPIAF carries out similar work in support of sub-national entities’ access to private financing. Municipal bonds, for example, represent a powerful capital allocation tool that is used by cities in many developed countries to build and maintain urban infrastructure, but has so far been untapped in many developing countries. SNTA’s ultimate target is financial transactions involving bonds or bank loans to help utilities or municipalities access market-based finance without sovereign guarantees to tackle the urbanization problem developing countries face.
One example of SNTA support to clients is the event which took place in Narobi, Kenya in October 2013 on Financing Sustainable Cities: How We're Helping Africa's Cities Raise Their Credit Ratings. Read more about the event on this link.
Please see our brochure and slideshow for more information on the work PPIAF has done on Urbanization.