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SMALL-SCALE PUBLIC-PRIVATE PARTNERSHIPS
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2024 theme for the World Association of PPP Units and Professionals (WAPPP)
WHAT ARE SMALL-SCALE PUBLIC-PRIVATE PARTNERSHIPS? (PPPs)
WAPPP’s Small-scale Public-Private Partnerships (PPPs) initiative focused on these collaborative projects between the public and private sectors that are modest in size and scope, but still aim to deliver essential infrastructure or services. Unlike large national infrastructure projects (like highways or airports), small-scale PPPs typically:
Operate at the local or community level
- Often led by municipalities, local governments, or even public schools and hospitals.
- Tailored to address local needs and improve community services.
Involve lower capital investment
- Projects usually require smaller budgets (e.g., thousands to a few million USD).
- Examples include rural water supply systems, primary healthcare clinics, solid waste management, school facilities, or solar mini-grids.
Are more accessible to SMEs and social enterprises
- Local private actors, NGOs, and philanthropic organizations often participate.
- These partnerships can also be more inclusive and community-driven.
Have shorter timelines
- Easier to implement and manage.
- Still follow key PPP principles: risk-sharing, performance-based contracts, and long-term service delivery focus.
Why they matter:
- Small-scale PPPs are crucial for inclusive development, especially in low- and middle-income countries, where large-scale PPPs may not be feasible.
- They help extend services to underserved or remote communities, and often focus on social impact over commercial returns.
GUIDELINES FOR SMALL-SCALE PUBLIC-PRIVATE PARTNERSHIPS
ABSTRACT
The WAPPP Small-Scale Public-Private Partnership (SSPPP) Guidelines provide a comprehensive and pragmatic framework to help governments and stakeholders design, develop, and implement SSPPP projects, particularly in developing countries and emerging economies, in pursuit of achieving the Sustainable Development Goals (SDGs). These projects, although limited in scale and value, can make a significant contribution to local development by enhancing access to essential services and infrastructure, particularly for underserved communities.
For the purposes of these guidelines, we consider small-scale public-private partnerships as smaller-sized infrastructure or service delivery partnerships between the public and private sectors. They are typically more community-focused than larger-scale PPPs, and hence more likely to be implemented at the municipal, regional, or subnational levels.
Recognizing that conventional PPP frameworks often focus on large, capital-intensive infrastructure projects, these guidelines aim to fill a critical gap. They tailor the SSPPP process to be simpler, more flexible, and more accessible, while still ensuring due diligence, transparency, and public value. The guidelines are underpinned by good international practices but are adapted to the unique contexts and constraints of small-scale projects.
CHAPTER 1: INTRODUCTION
Small-scale public-private partnerships (SSPPPs) are emerging as a powerful and scalable tool for delivering essential infrastructure and services at the community level. Unlike traditional large-scale PPPs led by national governments, SSPPPs focus on localized projects—such as water systems, schools, and healthcare facilities—offering tailored, quicker, and more visible solutions. They promote small and medium enterprise (SME) engagement, support sustainable development, and address urgent needs in urbanizing regions. Recognizing their potential, WAPPP conducted a year-long program, involving extensive stakeholder engagement, to showcase the adaptability and impact of SSPPPs in advancing the UN SDGs. These partnerships, typically implemented at municipal or subnational levels, are highlighted in new practical guidance aimed at policymakers and practitioners.
CHAPTER 2: KEY CHALLENGES FACED BY SSPPPs
Small-Scale PPPs (SSPPPs) face several structural, financial, and institutional challenges that hinder their wider adoption and impact. The high cost of project preparation relative to the scale of these projects discourages both public and private sector engagement, while most legal and regulatory frameworks are designed for large-scale PPPs, making them ill-suited for small, community-based initiatives. Many subnational governments lack the technical capacity and operational guidelines to effectively implement SSPPPs, often resulting in poor project selection and execution. The absence of clear risk management strategies, limited access to long-term local currency financing, and low creditworthiness of local authorities further reduce investor interest. Inconsistent legal enforcement, lack of incentives, and limited inter-agency coordination add to the complexity. To succeed, SSPPPs require tailored legal frameworks, simplified processes, stronger institutional capacity, and financial instruments that mitigate risks and attract private sector participation—especially SMEs—while ensuring long-term fiscal sustainability and community trust.
CHAPTER 3: LIFECYCLE CONSIDERATIONS
Lifecycle considerations for SSPPPs require a tailored and streamlined approach across project identification, preparation, structuring, and implementation phases. Early-stage success depends on simplified screening processes, pragmatic due diligence, and clear project criteria aligned with local needs. Leveraging existing planning frameworks, building local capacity, and using tools like the UNECE PIERS methodology can enhance project viability and alignment with the SDGs. Streamlined approval mechanisms—especially at the subnational level—are critical for faster execution. In the structuring and procurement phase, risk-sharing strategies should be proportionate to project size, using adaptable and simplified mitigation tools like partial guarantees or community-based models. Clearly defined KPIs can align public-private interests and build community trust. Ultimately, efficient SSPPP lifecycles depend on reducing procedural burdens, ensuring realistic risk management, and enabling agile, scalable delivery models suited to local development priorities.
CHAPTER 4: SSPPPs IN VARIOUS SECTORS
Unlocking Sectoral Impact: SSPPP’s in Social and Economic Infrastructure
This section examines the sector-specific application of SSPPPs, exploring their potential to foster innovation and efficiency in traditional sectors while acknowledging the contextual factors crucial for their success. The paper provides insights into potential benefits and considerations across two primary infrastructure categories
• Social Infrastructure accommodates social services including hospitals, schools and universities, prisons, housing, courts, etc.
• Economic Infrastructure makes business activity possible, such as communication, transportation, as well as distribution networks such as water, wastewater, and energy supply systems.
CHAPTER 5: GLOBAL GOOD PRACTICES
Global good practices in SSPPPs emphasize localized, efficient, and inclusive approaches that enhance feasibility and impact. Strengthening legal frameworks and decentralizing decision-making empower subnational governments to manage projects more effectively and responsively. Community engagement is essential for building trust and ensuring sustainability, while building institutional capacity—whether through dedicated PPP units or integrated local teams—enhances delivery. Standardizing contracts, bundling small projects, and designing targeted incentives improve financial viability and streamline processes. Technological integration, including digital procurement tools and smart contracts, increases transparency and efficiency. Innovative risk-sharing mechanisms and performance-based models foster accountability and cost savings. Finally, embedding sustainability in SSPPPs—from climate-smart design to inclusive planning—ensures long-term social, environmental, and economic benefits aligned with the SDGs.
Program
Feb
2nd: What are the issues faced by Small-scale PPPs?
16th: What are some of the possible solutions?
Mar
1st:What has been tried, suceeded and failed?
15th: What regulatory frameworks are needed.
Apr
5th: Presentation of case studies #1
12th: Presentation of case studies #2
26th: Presentation of case studies #3
May
10th: How can technology help small scale PPPs?
24th: What are some useful financing approaches?
Jul
5th: Small-Scale PPPs in Healthcare sector
19th: Small-Scale PPPs in Education sector
Nov
Petits PPP/Petites Concessions en France (Small-scale PPPs/Small Concessions in France)
Dec
Program closing
