PUBLIC PRIVATE PARTNERSHIPS FOR THE URBAN ENVIRONMENT
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- PUBLIC PRIVATE PARTNERSHIPS FOR THE URBAN ENVIRONMENT
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P U B L I C-P R I V A T E PARTNERSHIPS
FOR THE URBAN ENVIRONMENT
Initiated by the United Nations Development Programme
and
The Sustainable Project Management Association (Switzerland)
With the Participation of
» Governments
• the Private Sector
° Nongovernmental Organisations
• the Scientific and Academic Community under the Leadership of the
Massachusetts Institute of Technology
• and other Developed and Developing Country Institutions
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NEEDED:
NEW PARTNERSHIPS FOR THE URBAN ENVIRONMENT
The enJ of the century will witness an unpreceJenteJ change in the
pattern of human settlements —for the first time in history, more
people will live in cities an J towns than in rural areas.
During the past three decades, the urban population of developing
countries has tripled. By the year 2000, some 2.2 billion people wil
live in the urban areas of Asia, Africa, and Latin America, approxi
mately one-half in cities of a million or more. At least fifty cities will
be home to more than four million inhabitants.
More than simply a demographic phenomenon, rapid urbanisation is
one of the most significant processes affecting developing countries and
shaping their future. The result is a radical transformation in the
structure of cities, accompanied by complex social, economic, and
environmental changes.
THE SCALE OF THE URBAN CHALLENGE
The formation of
partnerships
between the
public sector and
private sector
institutions
is one of the most
promising among
newly emerging
forms of cooperation.
Urbanisation in developing countries lias been accompanied by an alarming growth
in the incidence of poverty. Today, one out of four urban dwellers lives in absolute
poverty; another one in four is classified relatively poor. By the end of this decade,
poor urban households are projected to increase by 76 percent.
This rapid concentration of
hundreds ol millions of
people has placed an extraor
dinary strain on the ability
of governments — both
municipal and national —
to meet the needs ol: city
dwellers. Urban environ
mental problems — such as
water and sanitation, waste
management, and energy —
are particularly acute, and
growing worse, as available
services and resources are
overwhelmed by expanding
populations.
The World Health Organization estimates that 25 to 30 percent of urban residents
in Latin America, Africa, and the Middle East lack access to potable water; more
than one-third in Asia are not serviced. Less than half of the waste generated each
day in large cities is collected by municipal authorities. In many cities, no refuse
disposal service is provided to slums and squatter settlements.
Deficiencies in the provision of urban services are caused by several factors: the
rapidly increasing size of cities, the high concentration of the poor, and the inad
equate management and technical skills of municipalities and government agencies
to deal with urban services. But at the core of the current breakdown is the issue of
insufficient government resources. Both supply and demand of services are affected
by limited budgets that prevent municipalities from providing adequate services,
especially to the poor.
A NEW APPROACH TO PROVIDING URBAN SERVICES
Today, most urban infrastructural services in developing countries are provided by
the public sector. Municipalities alone cannot meet the continually expanding
demand for services. While traditional bilateral and multilateral development
assistance plays a vital role in enabling governments to meet these challenges, the
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international flow of official development assistance (ODA) is a fraction of needed
investments. New partnerships for sustainable human development — sources of
financing, technology, capacity building, and management — are urgently required.
The growing complexity' and cost of urban-related problems call for innovative
interactions and collaboration between an increasing number of actors. The
formation of partnerships between the public sector and private sector institutions is
one of the most promising of the newly emerging forms of cooperation. Working
together, cities and companies can pool their resources, expertise, and unique
approaches to problem-solving to tackle urban challenges in a comprehensive way.
In 1994, the United Nations Developmen l Program me (UNDP) and the indepen
dent not-for-profit ^wiss association Sustainable Project Management (SPM) joined
forces to initiate a global programme to promote public-private partnerships in
support of sustainable developmen t goals.
In 1995, this programme — Public-Private Partnerships for the Urban Environment
— became operational. While launched by UNDP and tPM, the programme has
rapidly expanded to become an international collaboration involving governments,
businesses, nongovernmental organisations, the scientific and academic community
(under the leadership of the Massachusetts Institute ol Technology), and other
developed and developing country institutions. Today, UNDP and SPM act in a
catalytic and supporting role lor this unique network of scores of public and private
institutions. Building on this collaboration, replicable models of public-private
cooperation and shared responsibility are being estabished to address environmental
problems in dozens of major urban areas.
Working together,
cities and companies
PRIVATE FLOWS TO DEVELOPING COUNTRIES EXCEED ODA
can pool their resources,
expertise, and unique
approaches to
problem-solving
to tackle urban
challenges in a
comprehensive way.
3
Source: Human Development Report, UNDP, 1994
PUBLIC-PRIVATE PARTNERSHIPS FOR THE URBAN ENVIRONMENT
Community
participation
and capacity building
are key components
Public-Private Partnerships for the Urban Environment is creating a mechanism that
promotes the involvement of the private sector in programmes and projects address
ing urban environmental problems. By involving three sets of actors in sustainable,
joint municipal ventures — international and national companies; local companies;
and municipal or state agencies — the programme encourages each partner to bring
to bear its own unique talents, resources, perspectives, practices, and expertise. As
partners in mixed capital companies and enterprises, public and private sector
participants work’ to turn urban environmental problems into viable business
opportunities and sustainable, economically sound, and socially conscious invest
ments. 1 he result: both municipalities and private companies meet their own
objectives, and city dwellers enjoy an enhanced quality ol life.
of the programme.
WHAT ARE PUBLIC-PRIVATE PARTNERSHIPS?
There are many degrees of involvement of the private sector in the delivery of public
services. Privatisation as a policy instrument can involve a range of forms of
divestiture: contracting a private company for specific services; transferring public
service sector responsibilities to nongovernmental organisations; deregulation; and
the outright sale of public assets to private investors. While privatisation became an
increasingly important instrument of public policy in the 1980s, more recently the
potential negative social and environmental implications of full-fledged privatisation
have begun to be questioned.
Public-private partnerships are a form of privatisation in which government and
private companies assume co-responsibility and co-ownership for the delivery of city
services. Through these novel partnerships, the advantages of the private sector —
dynamism, access to finance, knowledge of technologies, managerial efficiency,
entrepreneurial spirit — are combined with the social responsibility, environmental
awareness, local knowledge, and job generation concerns of the public sector.
Owned jointly by public authorities and private companies, the new enterprises
typically provide reliable, affordable, eco-efficient services related to water treatment,
waste management, and energy conservation. Each joint venture is designed to meet
local needs while producing superior rates of return. Community participation is a
central feature, from the development of the project idea to ultimately managing the
enterprise. As a result, the programme ensures the build-up of a body of expertise
on the job, which in turn allows functions to be carried out efficiently, reliably, and
profitably after responsibility is transferred to the local partners. To support this
process, capacity building — training and other typos of human resource develop
ment, as well as adapting and developing appropriate clean technologies for use in
the new venture — is a key component of the programme.
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PROGRAMME FOCUS
Projects developed through this programme are designed to tackle some of the
most urgent urban environmental problems in the areas of water and sanitation,
waste management, and energy. Projects now in preparation bring together
private investors and city governments to address:
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water and air pollution
inadequate water supply provision
insufficient sanitation infrastructure
excessive waste of natural resources in industrial
production processes
inadequate or nonexistent waste management procedures
environmentally unfriendly technologies
lack of environmental education
lack of environmental considerations in industrial and
urban development initiatives
ineffective and wasteful energy sources and technologies, including
public transport and industrialisation
Owned jointly
by public authorities
and private companies,
the new enterprises
provide reliable,
affordable, eco-efficient
services related to
water treatment,
waste management, and
energy conservation.
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Innovative Features of the
Public-Private Partnership Programme
• uses ODA funding to leverage increased
private investment flows to city services in
developing countries;
• establishes public-private partnerships,
not full-fledged privatisation of municipal
services;
• catalyses profitable eco-efficient
projects that meet the priority needs of city
dwellers;
• focuses investment directly on services
that impact people most directly, rather
than funnelling it through bureaucracies;
• emphasises capacity building by estab
lishing Capacity Building Centres that can
provide industrial sectors with industry
specific training, research into technology
adaptation, and laboratory and other
business-related services;
• provides local communities access to a
global network of expertise;
• focuses on meeting concrete objectives
in three areas: water and sanitation, waste
management and energy; (when appropri
ate, "industrial estate management
companies" are estabished to address all
three areas, thus producing greater
efficiency and integration);
• stimulates participation and shared
responsibility for urban problem-solving
among all sectors;
• fosters environmental technology
transfer and leapfrogging;
• builds and trains local capacity to
protect the urban environment;
• addresses problems that have national
or regional implications beyond the local
setting;
• designs projects for maximum
replicability.
PROGRAMME PRIORITIES
Public-Private Partnerships for the Urban Environment is working to achieve the
following objectives:
•
promote the concept and culture of sustainable development,
cco-efficiency, and public participation through collaborative project
identification, development, and implementation;
•
identify development problems for which public-private partnerships
can provide cost-effective business solutions;
•
enqage private sector investors in partnerships with the public sector
to promote sustainable development through eco-efficient business
projects in the developing world and economies in transition;
• ensure long-term viability by integrating capacity building and human
resource development to support ongoing management of the project,
maintenance of the technology, and provision of services to the
community;
• stimulate pragmatic and replicable solutions, both preventive and
remedial, to some of the most widespread environmental problems
affecting urban dwellers worldwide;
° develop effective, working partnerships with other multilateral and
bilateral aid agencies and foundations to promote Agenda 21;
* establish new forms of public-private cooperation in financing
sustainable development business projects; and
*
accelerate technology advances and “leapfrogging" to meet urban
environmental needs.
Criteria for Selecting
Private Sector Partners
WHY4 NEW PROGRAMME TO PROMOTE PUBLIC-PRIVATE PARTNERSHIPS?
Municipalities and private companies embody qualities, talents, and skills that
complement one another very well. To date, however, there has been a noted lack of
dialogue
an enormous gap — between the private and public sectors in many
developing countries.
For their part, private sector investors, typically working within the existing
constraints of financial markets and investment practices, have a low awareness of
the potential benefits and profits from an eco-efficient approach to delivering urban
services. And while cities represent potential investment opportunities — and need
access to private sector funds, technology, and expertise — they do not have a direct
channel of communication to external funding sources.
Public Private Partnerships for the Urban Environ men I encourages and promotes a
direct communication channel between local authorities and the private sector al
various levels, creating opportunities for technology dissemination and investments
that can produce social, economic, and environmental benefits.
In identifying private sector partners to
participate with municipalities in mixed
capital companies, the Public-Private
Partnerships programme uses a
transparent process based on clearly
defined criteria. In order to be eligible
for selection, the private partner must:
• be willing to contribute to the cost of
the project's pre-feasibility and feasibility
studies;
• be prepared to invest in the new
company when it is formed;
• have extensive experience operating
the eco-efficient technologies to be used
by the new company;
• have experience operating in the
country where the new company will be
established;
• have the support of its own govern
ment's development agency;
• strongly support and advocate ecoefficiency and local participation.
The Benefits of Involving Private Sector Partners in the Delivery of Urban Services
The experience of privatisation in
developing countries to date indicates
that private corporations, nongovern
mental organisations and informal
sector enterprises have potential
advantages over government agencies
in providing some types of services.
The private sector can provide lower
production costs, more efficiency in
service delivery and has greater
capacity to maintain capital equipment.
Private companies can often offer
consumers greater choice — and make
decisions faster and more efficiently —
than public bureaucracies. They have
access to the latest technological
advancements and can undertake their
own research, allowing for more
flexibility in adjusting the types and
levels of services to changing needs.
They can also reduce financial burdens
on governments for wages, operating
costs, debt servicing and investment.
Recent research in developing
countries confirms that there is a
strong positive correlation between
private sector activity and economic
growth. Today, more than $120 billion
of private international capital flows
into developing countries; hundreds of
billions of dollars more of private
domestic capital is also invested within
countries. Yet little of this is specifi
cally directed at meeting social needs
through environmentally sound
approaches. One of the main objec
tives of this programme is to re-direct a
percentage of these investments in this
direction.
Public-private
partnerships are a form
of privitisation
in which government
and private companies
assume co-responsibility
and co-ownership for
the delivery of
city services.
7
Governments &
Beveiopment
Agencies
Scientific
& Academic
Community
'y’^rs? ?y ■:-
NGOs
■ j s <■; j» S i &
cement
8
The Composition of the
Public-Private Partnerships Network
•
co-initiators
— UNDP
— SPM
AN INTERNATIONAL NETWORK FOR THE URBAN ENVIRONMENT
• donor governments and their
development agencies
While initiated by UNDP and SPM, the programme is actively involving many key
actors in the international community — donor governments and their development
agencies; environmentally-concerned corporations in developed countries; businesses
in the developing world and economies in transition; international financial institu
tions, development banks, and NGOs; and leading international experts in urban
environmental problems and eco-efficient technologies.
Some of the world s premiere academic and scientific institutions participate in this
network, including the Massachusetts Institute of Technology which plays a leading
role in the programme by helping to evaluate and assess technologies appropriate to
local needs. MIT s Technology and Development Program is also key in enhancing
the scientific and technological capabilities of developing countries, and in establish
ing networks comprised of their institutions.
• developing country national and
municipal governments
• the private sector (local and interna
tional)
• scientific and academic community
(including MIT and other institutions from
developed and developing countries)
• international financial institutions and
development banks
•
NGOs (local and international)
Donor governments and their development agencies play a particularly vital role
in the programme. Their involvement helps increase the level of information
available to programme partners on state-of-the-art environmental technologies,
strengthens the network of academic and scientific institutions, and ensures a flow
of crucial resources, from financial contributions to sharing of field experience and
technical expertise.
Drawing on this network of experience, expertise and resources, the Public-Private
Partnerships programme is ahie to identify small-scale to medium-size urban
infrastructure projects that can enhance urban services and prevent pollution. Once
identified, these projects are turned into productive public-private partnerships and
matched with investors.
UNDP'S ROLE
As co-initiator of the Public-Private Partnerships for the Urban Environment
programme, UNDP acts as a catalyst to project development — both through
political as well as technical support — and eventual replication of successful partner
ships. Among UNDP’s programme responsibilities: identification of pilot cities,
negotiation with local authorities, and promoting dialogue between the differentparties. An important asset UNDP provides the programme is its network of more
than 130 UNDP Country Offices which assist in identifying potential projects,
following-up government contacts, and monitoring the development of projects.
UNDP also brings to the partnership a long-standing commitment to human
centered urban development, as well as substantial background in encouraging private
sector involvement in development. Since 1971, UNDP has invested more than
$3 billion to support broad urban projects (for schools, clinics, power, telecommuni
cations, transport, and regional planning). It has provided an additional $250
9
million for targeted urban projects (planning, housing, infrastructure, and services
The programme is
actively involving many
key actors in the
for activities to generate income). In addition, over the past ten years, UNDP has
provided 8600 million of support to more than 400 technical assistance projects
involving the private sector. Among UNDP's ongoing urban programmes, two
enjoy great donor support: the Local Initiative Facility for the Urban Environment
(LIFE) and the Urban Management Programme (UMP). These two programmes
are mainly oriented towards building capacities of governments, municipalities, and
NGOs.
international community —
donor governments;
environmentally-concerned
corporations in
developed and developing
SPM'SROLE
As co-initiator of the Public-Private Partnerships for the Urban Environment
programme, SPM is primarily responsible for identifying and enlisting local and
international companies and experts to participate in municipal projects. SPM
develops and structures eco-efficient projects with the intention of establishing viable
new enterprises to provide infrastructure services for municipalities and industries in
the developing world and in the emerging economies of central and eastern Europe.
countries; international
financial institutions,
development banks, and NGOs;
and leading international
experts in urban
environmental problems and
eco-efficient technologies.
In many ways a non-traditional enterprise, SPM is a kind of virtual organisation
with minimal infrastructure but with access to a vast international network of
NGOs, scientific and academic experts, corporate partners, and public and private
sector leaders from many developing countries. Working from an administrative
headquarters in Geneva, and in close consultation wiill UNDP and the international
community, a small professional SPM staff is in constant communication with this
network, tapping a wealth of experience in urban environmental issues and technolo
gies. In addition, SPM can draw on the talent and energy of four global networks
has fostered — the Technological Network (involving major universities and scien
tific institutions), the NGO Network, the Corporate Network, and the regional
BCbD Network (an association of business leaders in the developing world inter
ested in the concept of sustainable development).
In January 199o, the BCbD — the “parent” organisation that established SPM —
merged with the World Industry Council for the Environment (WICE), forming the
World Business Council for Sustainable Development. WBCSD numbers 120
leading corporations in 35 countries among its members. While actively encouraged
and supported by the World Business Council, SPM is completely independent and
is not obliged to involve WBCSD members in the public-private ventures it helps
establish. Because SPM is independent of any company or organisation, it can help
select the most appropriate business and technology partners for each project.
PROPOSED FUNDING ARRANGEMENT
The programme’s initial pilot phase was funded by UNDP with a contribution of
$1 million Building on the success of this phase, UNDP proposes to mobilise
resources for the programme’s global operational phase and is seeking funding in the
amount of M0 million. This funding will support three main initiatives: project
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identification (including bringing potential partners together and brokering local,
national and international partnerships); capacity building aimed at helping develop
ing countries utilise private sector resources; and analysis, documentation and
information dissemination for technology transfers.
Typically, projects
undertaken by the new
company range in size
__________________________________________________________
from $5 - $30 million.
PUBLIC-PRIVATE PARTNERSHIPS: FROM IDEA TO REALITY
Thus, a front-end
In the initial phase of the programme, a small number of cities has been selected in
which models of public-private cooperation will be developed. I he process of
formulating an urban partnership — from identifying a potential project through to
establishment ol a mixed capital company — costs approximately SI million.
Typically, projects undertaken by the new company range in size from S5 — S30
million. Thus, a front-end expenditure of SI million in ODA leverages five to
thirty times that amount in urban environmental investments.
A project typically goes through the following sequence as it moves from conception
to implementation:
PROJECT IDENTIFICATION
Projects are selected based on a set of carefully applied criteria, including interest
on tke part of both the central government and the municipality, potential for
sustained private sector involvement, and clearly established benefits to the commu
nity. Following negotiations with local authorities, final project selection is made
jointly by the international and national institutions that will be involved in the
project. Transparency is a hallmark of the selection process.
VIABILITY ANALYSIS
A pre-feasibility study is undertaken to demonstrate to private sector investors
tke viability of tke proposed project. By providing in-depth information about
the project, the study helps encourage risk capital and show that a full-fledged
feasibility study is worth undertaking to determine the investment potential for
private sector operations in the target area.
ESTABLISHMENT OF THE MIXED CAPITAL COMPANY
Based on the level of local interest and commitment, and the willingness of potential
investors to become involved at tke outset of the project, a private-public company is
established. The aim is to balance the participation of all parties so that a shared
expenditure of $1 million
in ODA leverages
five to thirty times
that amount in
urban environmental
investments.
Selection Criteria for Public-Private
Partnership Projects
In order to be eligible for selection, a
project must:
• focus on one of the following city
services: water and sanitation, waste
management, or energy;
responsibility is readied. Tire mixed capital enterprise is responsible for
• address a problem that is a priority for
local authorities and the central govern
ment, and also a common concern
shared by other cities in the region;
Public sector partners in these companies may include national, regional, and
municipal level authorities, the national development bank, representatives of utilities
and transportation services, and municipal engineers. Private sector partners include
local and international companies, banking establishments, entrepreneurs, equipment
manufacturers, management groups, chambers of commerce, trade unions, NGOs,
and consumer associations.
• establish a functioning public-private
partnership, not simply privatisation of
city services. Public administration must
have an active interest and participation
in the project;
• demonstrate a strong potential —
including the possibility of reasonable
profitability — for attracting the private
sector;
• provide an opportunity for improving
local social conditions through job
creation, training opportunities, overall
improvement of city services, and
enhanced urban living conditions;
’ respect local cultural values and
established labour traditions;
- embody opportunities for technology
transfer and capacity building,
• involve local stakeholders, NGOs and
community-based organisations in
project development.
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implementing the project.
Following the viability analysis, the selection of the international private partners
occurs. Using the established criteria and taking into account the suggestions of
financial contributors to the project, a short list of companies is developed, if more
than one company appears to be appropriate for the project, a tendering process is
conducted. Once the best available international partner has been identified, local
partners and financial institutions review the selection. Their approval is a key to the
long-term viability of the project.
REPLICATION OF PARTNERSHIP IN OTHER CITIES
Central to the process is ensuring that the project addresses a problem that is a
priority not only for local authorities and the central government, but also a common
concern shared by other cities in the region. Determining the potential [or replica
tion does not wait until a project is under full implementation, but occurs at the very
outset of the process, during the feasibility phase.
PROGRAMME METHODOLOGY
PHASE 1:
Project Identification
° Identification of potential public and private partners
to invest in solving local municipal priorities
Typical budget: $100,000 — 75% from contributors;
25% from partners
PHASE 2:
Viability Analysis
•
Technical identification and viability analysis (technol
ogy assessment; local capacities; need for capacity
building; job generation; social, economic and environ
mental benefits)
•
Involvement of the scientific and academic
community
•
Identification of financial partners and other potential
investors (public and private; local and international);
identification of private international partners
*
Completion of initial project proposal and investment
planning; commitments obtained from all partners to
create new mixed capital company
Typical budget: $375,000 — 50% from contributors;
50% from partners
PHASES:
Company Creation and Start Up
•
Detailed technical analysis: identification of most
appropriate clean technology; investment report; capacity
building budget; agreement on technology adaptation and
local components development
•
Detailed financial analysis: corporate structure
for the new company; agreement on return investment,
rates, transition strategies, fiscal and legal aspects
•
Completion of final proposal and implementation
strategy; approval from local and international financial
partners
•
New company start up; UNDP maintains respon
sibility for ongoing monitoring and evaluation
Typical budget: $425,000 — 40% from contributors;
60% from partners
PHASE 4:
Replicability
•
Selection of potential locations for replicability;
partner identification, preparation of pre-feasibility report
for new projects
Typical budget: $100,000 — 75% from contributors;
25% from partners
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INNOVATIVE SOLUTIONS TO URBAN PROBLEMS: REPRESENTATIVE PROJECTS
As of April 1995, more than two dozen projects in Asia, Africa, the Arab States,
Eastern Europe and Latin America, have been identified through the Public-Private
Partnerships for the Urban Environment programme. Most are in the project iclentification or viability analysis phase of activity. Below are three representative projects
now under development.
* Manizales, Caldas State, Colombia
1 HE PROBLEM: 70 percent of Colombia’s 300,000 coffee producers use a
traditicmal method lor separating plant skin from coffee seeds that requires 40 litres
ol water to produce one kilogram of coffee. Through this process, the water becomes
a thick black liquid which is then discharged into streams and rivers, causing
significant pollution. Since most of the polluters are small-scale producers from
low-income groups, a gradual, simple, affordaMe, and cost-effective strategy is
needed to correct the situation.
THE PARTNERSHIP: Through the Private-Public Partnerships programme, an
agreement has been signed between the government of Caldas state, the city of
Manizales, Cafeteros (the cooperative of coffee producers), the Financial Corpora
tion of Ca Idas, and SPM for the creation of a mixed company for the management
of waste water from coffee producers and the provision of clean water to cities
downstream. Local liaison will be provided by Fundacolon and ANDI, two NGOs.
In October 1994, the Colombian shareholders of the new company subscribed shares
for 370,000 to help underwrite the pre-feasibility study for the project.
i
REPLICATION: This project has considerable replicability potential. Five other
cities in the state of Caldas are interested in undertaking similar initiatives, as are
other states in the country. Beyond Colombia, countries like Honduras and Costa
Rica, where a significant proportion of the economy is represented by the coffee
industry, have also expressed an interest in implementing the programme.
• Madras, India
THE PROBLEM: One of Asia’ s main exporting ports, Madras is the site of
numerous, highly polluting industrial plants producing petrochemicals, heavy metals,
and fertilizer. The city also has a serious water shortage problem: industries operate
at only 50 percent of capacity in order to ensure adequate water for residents.
THE PARTNERSHIP: A pilot area has been identified containing eleven major
industries representative of the main economic activity ol Madras. A mixed capital
water recycling company has been formed with the objective of improving industrial
estate management, including implementing industrial water recycling, liquid
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effluent treatment, and public sewage technologies. The main partners will be the
Manali Industries Association, Metro Water of Madras, and the confederation of
Indian Industries. The local financial institution will be the IDBA. OECF-Japan,
has offered to finance the feasibility study and 85 percent of the required investment.
REPLICATION: i he city ol Madras has expressed interest in extending the lessons
learned and training activities ol this project to two other industrial estates with
similar industrial activities and problems. Bombay and Bangalore have also shown
preliminary' interest in replicating the initiative.
• Ostrava, Czech Republic
THE PROBLEM: North Moravia is a region where the environment has been
severely affected by intense industrial activity, resulting in the accumulation of
substantial urban and industrial waste. With significantly reduced government
subsidies, newly privatised companies are resisting making expenditures necessary to
conform to the national environmental plan. Unemployment in the past several
years has more than tripled. Improving the efficiency of urban environmental
management and modernising industries now polluting the region’s environment is
a priority.
THE PARTNERSHIP: A Memorandum of Cooperation to create a mixed capital
company to invest in environmental protection in the area of Ostrava was signed in
November 1994. Solid waste management will be the first priority of the company.
Signatories included the Moravia Development Corporation, the city of Ostrava, the
Mega Company (a Czech private partner), the Scientific Research Institute (INRS)
of Quebec, Canada, and SPM. Interest in participating has also been expressed by a
number of Czech private companies involved in the industrial waste management
field, as well as by international firms based in Brussels, Paris, and Prague.
REPLICA!ION: The mayors of the six districts of North Moravia — totalling
sixty municipalities — have indicated a willingness to join the new company during
the replication phase of the project.
PROJECT LOCATIONS
POTENTIAL PARTNERSHIPS
Hubei, China
Fujian, China
Aral Sea, Central Asia
Pilsen, Czech Republic
San Salvador, El Salvador
Bangalore, India
Beirut, Lebanon
Rio Grande, Mexico
Nablus - Occupied Territories - West Bank
Ancash, Peru
The Seychelles
Johannesburg, South Africa
Zimbabwe (2 additional sites)
All photography by Curt Camemark with the exception of page 4, John Cleave and page 5, Laurie Edwards.
rnrd~|2P ®
Public-Private Partnerships for the Urban Environment
Sustainable Energy and Environment Division
United Nations Development Programme
One United Nations Plaza
New York, NY 10017
Telephone: 212-906-5780
Fax: 212-906-6973
Sustainable Project Management
158A Route de Florissant
CH-1231 Conches, Geneva
Switzerland
Telephone: 41-22-839-3180
Fax: 41-22-839-3181
Sustainable Project Management
Place du Canada 1010
rue de la Guachetiere 0., Suite 370
Montreal (Quebec) Canada, H3B 2N2
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