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sibilities of the partners. Outcomes have been good on the whole, although there are exceptions. Many local governments in the Asia-Pacific region have also entered into public-NGO partnerships for the delivery of basic services. Some NGOs started out as militant activist groups, critical of government pol icies, but many now cooperate with govern ments. Their activities supplement public programs in solid waste management, affordable housing, environmental conservation and sanitation. Where the private sector provides services independently, this usually involves small operators, often within the informal sector, catering to the needs of low-income residents for transportation, solid waste management, sanitation, energy, and slum improvement service. Rickshaws and three wheeled vehicles, for instance, may be available for hire where there are no public transport options, and waste pickers, earning money by recycling usable items, are a common alternative to municipal solid waste systems. Private companies also empty septic tanks where there is no trunk sewerage. However, unregulated private enterprise can also create problems. Transport providers contribute to road congestion, air pollution and high accident rates; waste collectors may only collect useful
45%
Population live in urban areas
items and scatter other types of waste; water vendors in slum areas often charge higher rates than public utilities and sometimes sell contaminated water; and septic tank service providers have been known to dump effluent in rivers and streams. Financing basic services The financing of infrastructure in Asia- Pacific is dominated by central and state/ provincial governments. Local governments have little capacity to raise funds for day-to-day operations and infrastructure investment. The private sector, through PPP schemes, is starting to venture into infrastructure finance, but faces complex government regulations. In recent years, domestic banks and other financial institutions have started to finance projects, but many local officials are reluctant to borrow for infrastructure financing because they lack knowledge of, and competence in, credit financing. Credit financing procedures are often very complicated. Borrowing is often limited (e.g. it must not exceed 30% of project costs in China, or 5% of current budget ba lance sheets in Malaysia). In India and the Philippines, local governments must obtain acceptable credit ratings from public and private entities. In all countries, internation al loans involving foreign currencies require a sovereign guarantee.
1.8%
Urban population a year