Public-Private Partnership for Urban Environment (PPPUE), a project supported by United Nations Development Programme (UNDP) and executed by Ministry of Local Development (MLD) was initiated in March 2002. The development objective of PPPUE is to increase the access of the urban poor to basic services and to contribute to the creation of a healthy environment and the improvement of living conditions in urban and peri-urban areas of Nepal by promoting partnerships between public and private sectors for the sustainable provision of urban services.

PPPUE started off with major interventions in creating awareness among its stakeholders on PPP and building institutions to undertake PPP activities at local and national levels. Since its launch PPPUE has been adopting a two-pronged approach of policy influence and upstreaming endeavours at the central level coupled with capacity building and institutional development efforts at the local level. The project has accomplished a primary level of capacity development; established 71 model micro PPP projects on the ground based on private fund mobilization, increased the self earning capacity of the partner municipal offices, generated employment among poor targeted groups and helped to increase access of the poor to basic urban services.

By supporting pro-poor PPPs in urban services provision and infrastructure development, PPPUE contributes to Millennium Development Goals 1 & 7 with environment friendly PPP projects providing employment opportunities for targeted groups; increasing access to safe drinking water and sanitation; and sharing best practices, lessons and knowledge of PPPs. 

PPPUE has successfully partnered with 13 municipalities, which includes four municipalities (Birgunj, Butwal, Dhangadi and Dharan), where activities will be supported through ADB/Aus AID funds. PPPUE also extends its support to four more municipalities (Baglung, Bhimdutta, Dhankuta and Guleria) through its major partners the Municipal Association Nepal (MuAN) and Federation of Nepalese Chambers of Commerce & Industry (FNCCI).  

PPPUE’s planned interventions and activities (January 2010 to December 2012) include:

• Consolidation of PPP projects to fewer but larger projects including special emphasis on demand based projects, their impact on communities, strong ownership by municipalities, the private sector and communities.

• Sustaining existing PPP projects with intervening viability mechanisms and replication of successful projects in other partner municipalities. A gender and social inclusion audit of the project management unit along with partner organizations and PPP projects will be conducted. Seed grants to model projects will be specially targeted to women, youth and disadvantaged groups.

• Development of the required policy and procedural instruments to initiate national level PPP projects. Support NPC to prepare ‘PPP White Paper’. PPPUE together with Nepal Banker’s Association is preparing PPP financing policy for infrastructure projects. PPP financing policy will facilitate and offer incentives to banks and financial institutes to provide financing to infrastructure projects.

• Technical assistance and other support to ADB funded PPP interventions in four municipalities– Birganj, Butwal, Dhangadhi and Dharan. Included within the initiatives is the recruitment and placing of 25 national women volunteers within local bodies of Nepal including the selected municipalities of PPPUE through the United Nations Volunteer Program (UNV).

• Integrated solid waste management initiative in Biratnagar. Sustainable solid waste management initiative in Biratnagar, will mainly concentrate on revenue generation from solid waste management.