Public Private Partnership for Urban Environment (PPPUE)

What was the project about

 Public Private Partnership for Urban Environment project supported 13 municipalities to work in partnership with the private sector to improve the urban poor's access to services.

Nepal's 58 municipal authorities struggle to provide their rapidly growing populations with clean drinking water, waste disposal, sanitation and other services. In towns and cities around the world public private partnerships (PPPs) provide a sustainable way of improving access to services. These partnerships bring together the strengthes of the private sector (inovation, technological knowledge, managerial efficiency and entrepreneurial spirit) with the social responsibility, public accountability and local knowledge of the public sector and civil society. A key raitonale behind public-private partnerships is that businesses often provide services more efficiently than the public sector.

Since 2002 the Public-Private Partnerships for Urban Environment project had worked with the Ministry of Local Development, municipalities and the private sector (FNCCI and district and city chambers of commerce) under the PPPUE project to build an enabling policy environment and the human resources to implement public private partnerships. Such partnerships involved municipalities facilitating private businesses, NGOs and communities to provide services. In 2010 new funding from the Asian Development Bank and Aus AID had enabled the project to extend to four of Nepal's rapidly growing municipalities- Butwal, Birgunj, Dhangadi and Dharan.

What had we accomplished so far

Enabling environment - Considerable progress had been made on creating an enabling environment to increase community and private sector participation in providing urban services. The project's on-going support to the Government to improve the policy, legal and regulatory environment had seen the Government adopting PPPs as an alternative way of building local infrastructure and providing services. Accordingly, the Approach Paper to the current Three Year Plan (2010/11 and 2012/13) had given emphasis to the PPP approach especially in the physical infrastructure sector. The Prime Minister had also recognised PPPs as a good way of attracting the large volumes of private investment needed to achieve the Government's economic growth targets.

The project's advocacy work and support had led to the FNCCI, MuAN, the partner municipalities and local chambers of commerce setting up PPP units. Following on from this, FNCCI and MuAN had spearheaded many new PPPUE interventions in non-project areas. Another important development was the establishment of a National PPP Coordination Committee in 2006 in the Ministry of Local Development.

Capacity Building - Over 6,000 persons have been trained by the project.  Other local government staff had learned from developing new projects, by preparing contract documents and by carrying out feasibility studies on proposed projects. The project had also trained local entrepreneurs to prepare PPP project proposals and business plans and to mediate in PPP disputes.

The project had paved the way for the wider training of central government personnel and the staff of Nepal's municipalities by supporting the main training institutes for civil servants, local government staff and judges to include public-private partnerships in their training curricula. This enabled trainees to oversee the implementation of PPPs and to mediate in PPP disputes.

New Projects - The project had supported its partner municipalities to implement 88 PPP projects to demonstrate this way of providing services and developing infrastructure.  In 2010 and 2011, most of the projects were in solid waste management, mobile toilets, sewage-attached biogas, solar street lighting, the management of recreational areas and city markets, and in building and operating slaughter houses.  Most of these initiatives were improving the urban environment and services for urban dwellers as well as providing new employment. Whilst doing this the involved municipalities, service providers, small businesses, informal private entrepreneurs and community members learn many important lessons about how to manage PPPs. Also, United Nations Volunteers were posted in 25 municipalities as dedicated support to manage and facilitate projects, track the servides provided and disseminated the PPP model. They worked alongside PPP focal persons in the municipalities and chambers of commerce.

Hetauda bus park now has clean and well-maintained public toilets. The toilets were renovated by a local organisation, Adarsha Tole Bikash Samstha (ATBS), in agreement with the local municipality, which owns the toilets. The toilets, which were filthy and badly run, provided a valuable facility for passengers and drivers. The local organisation added new facilities, such as showers for drivers, a garden around the toilets and a solar lighting system. Since these improvements the daily revenue has increased from 350 to 1400 rupees. Some other best examples of PPP are;

  • In Biratnagar on solid waste management, operating public toilets and managing advertising hoardings.
  • In Mechinagar (Jhapa) to manage advertising hoardings and to build and operate a slaughterhouse.
  • In Dhulikhel to manage the towns' solid waste and a public park and to provide public toilets.
  • In Siddarthanagar (Bhairahawa) to build and manage a fruit and vegetable market and to collect business taxes.
  • In Kathmandu to manage public toilets, to compost waste from the main fruit and vegetable market and to provide drinking water in reusable jars to local people at a cheap cost.
  • In Bharatpur to manage medical waste, provide public toilets, build bus shelters and to generate biogas from green waste at the wholesale vegetable market.
  • In Hetauda to set up community managed drinking water schemes and improve the bus park toilets.

Who Financed it?

Amount contributed
Asian Development Bank
Unfunded budget $0.24m
Total budget $3.47 million

Delivery in previous fiscal year




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