Module 02: Strategic Planning

2.3 What are the key issues?

Who is involved...?
    ...Local government
       ...All relevant stakeholders

Involving all players

Since any project, particularly a PPP project is about using strengths and resources of the partners or parties concerned, it is critically important to involve the private sector and civil society in the process of strategic planning.
Although at this stage the contractor (the party that will carry out the work) is not yet selected, it is still possible to involve representatives of all the groups of stakeholders – for example, professional associations, community-based and non-governmental organisations, trade union and others. Their input will help to make the strategic planning objective, realistic and more likely to reach a desirable outcome.

Non-municipal initiatives

Although the municipality is playing the most important role in undertaking and coordinating the strategic planning process, it is often the private sector and/or the community that comes up with the most innovative partnership ideas. Even though a proposed idea may go beyond the original municipal plan, the municipality should remain open to such initiatives.

Locating and linking PPPs in urban governance and management

A partnership does not exist in isolation. It is important to develop the partnership in the context of municipal objectives, other municipal development activities and reforms. The process of developing a strategy creates a platform for decision-making linked into broader municipal management, service delivery and poverty-reduction goals. This will mean, for instance, that the proposed strategy for water and sanitation services might be developed alongside a strategy for solid waste management or energy. The aim is to ensure that a coherent pattern of infrastructure development occurs – one that recognises opportunities, constraints and livelihood implications, as well as community and municipal capacities.
In order to strengthen local governance, it is important to understand how the PPP (if it is undertaken) will contribute to broader governance objectives, and how those governance principles are embodied in partnership approaches. For instance through:

– participation and consultation;
– integrated planning at the strategic level;
– financially sound management;
– accountable and transparent actions; and
– collaborative and innovative management.

In order to enhance poverty reduction through the PPP, it is important to establish partnership processes in the broader framework of municipal action for the poor. For instance in relation to:

• community mobilisation, empowerment and organisation;
• promoting demand-led initiatives;
• establishing incremental service improvement; and
• resolving land tenure issues.

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