One of the most powerful ways that state and local governments can finance and deliver basic urban services is by some form of public-private partnership. Water supply distribution, sanitation and drainage, water treatment, wastewater management, solid waste collection and disposal, local transport, on-street parking, and controlled access roadways are good examples of infrastructure services that can often benefit from some form of concessioning arrangement. They also represent a major share of the public budget and existing long-term debt.

Astris Finance works with central and local governments as well as the state-owned companies in charge of such services to determine how best to enlist private participation - and how best to strengthen public service providers when private operation is not a realistic option.

We list below the ten steps we consider crucial to achieving a successful concession for our public client and the private investor-operator:

• Review technical, financial, and environmental studies.
• Determine the institutional structure that best fits the proposed concession, giving due importance to social effectiveness, financial feasibility, and good environmental performance.
• Develop special mitigation measures when critical social coverage falls short of public policy goals.
• Design the financial structure in a way such that the concession may attract reputable operators and investors - and long term financing.
• Define clear and transparent procedures for the concession bidding process to assure wide interest in the project and to elicit the most desirable proposals.
• Build community support and promote citizen participation in the process; timely information and a willingness to listen to divergent views from local organizations and the press enhance the project's ultimate success - or signal sensitive points that should be addressed.
• Define the institutional structure and arrangements for supervising the concessionaire and the concession contract. Train key personnel early on to ensure a smooth transition to the new scheme.
• Prepare all concession specifications and the draft concession contract to be distributed to participants.
• Manage the concession award process transparently. Establish and administer the document data room where all relevant information is readily available to participants. Facilitating an open and fluid communication with all participants, and provide timely response to all questions.
• Provide all legal and technical support needed by public authorities in negotiating a timely agreement with the selected investor-operator.