With decentralization, local governments and authorities are increasingly in charge of the planning and development of their territory and of providing their populations with basic services. Because of limited financial resources and capacity, local governments on all levels are looking into using private funds to build, operate and maintain key infrastructures and provide key services such as social housing, water distribution system, sanitation, waste collection and management and public markets, car parks, street lighting, health centres and bus services.
This trend is often encouraged by the central government that puts in place laws granting local governing bodies the authority to enter into partnerships with the private sector both for service provision as well as the more BOT type of project involving construction and/or rehabilitation activities. This adds another layer to the traditional central government-private sector partnership.
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