Public-Private Partnerships: An Opportunity to Enhance the Quality of Municipal Infrastructure and Services Delivery
Sarajevo, May 30, 2024 – The U.S. government through the U.S. Agency for International Development (USAID) today held the “Enhancing Municipal Services Through Public-Private Partnerships” conference to explore and present examples of how municipal governments can work with private businesses to improve community infrastructure, strengthen the services they provide to citizens and businesses and foster economic prosperity. The conference also presented two public-private partnership infrastructure projects concepts, with an estimated value of 11 million KM (approximately $6.1 million USD), that aim to improve the quality of life for citizens in Šamac and Zenica.
“Public-private partnerships (PPP) offer versatility and sustainability as an approach for addressing various community needs while also accessing the resources of the private sector and their innovative, cost-effective, and efficient know-how,” said Courtney Chubb, USAID Mission Director in Bosnia and Herzegovina.
The PPP concepts presented today included a street lighting project in Zenica and the construction of a long-term care facility for seniors in Šamac. An additional eight public-private partnerships projects concepts aimed at helping municipalities attract investors and improve the delivery of public services will be developed with USAID assistance.
Although PPP can play a significant role in boosting the local economy, their utilization in Bosnia and Herzegovina is still in its early stages. According to USAID’s assessment, one of the main obstacles to greater adoption of this effective mechanism is low awareness among key stakeholders. Forty percent of USAID’s Local Governance Assistance Activity (USAID LGAA) partner municipalities had an initiative to establish a PPP, but only 10 percent of them managed to implement projects through this mechanism.
"The ministry I am heading has prepared a draft law on PPP, which will be discussed by the Government of the Federation of Bosnia and Herzegovina and referred to the legislative procedure. The law will facilitate the implementation of PPP projects at the level of the Federation of BiH, help reduce infrastructural drawbacks, and strengthen economic growth by enabling public bodies to provide better and adequate public services without incurring additional financial burdens," said Mr. Vedran Lakić, Minister of the Federal Ministry of Energy, Mining and Industry.
At this occasion, USAID also presented a White Paper on Public-Private Partnership in Bosnia and Herzegovina that will serve as a practical guide for public authorities involved in structuring public-private partnership projects.
The U.S. government is committed to supporting local governments, recognizing their crucial role in the development of Bosnia and Herzegovina. USAID LGAA is strengthening the performance of partner municipalities to better plan for, manage, and improve quality of municipal service delivery, to promote sustainable local development, and increase transparency and accountability to citizens and businesses.
The U.S. Agency for International Development is leading the U.S. Government's efforts to end extreme poverty and promote resilient, democratic societies. To date, the U.S. Government, primarily through USAID, has provided $2 billion in assistance to support economic, democratic and social progress in BiH.
USAID LGAA Infographic PPP
