Municipal Project Support Facilities (MPSF)

The municipal infrastructure sector in the Eastern Neighbourhood region is going through a process of substantial structural change in terms of providing traditionally public services such as the water supply and wastewater treatment, district heating and public transport. This includes restructuring public utilities at the local level and tariff reforms. As part of a decentralisation process, governments have transferred responsibility to local authorities. The removal of much of the central organisation of and funding for public infrastructure, which used to be offered at virtually no cost to the population, has resulted in inadequate funding and the services have deteriorated both in terms of quality and hours of service. Ageing infrastructure coupled with limited financial resources is pushing municipalities to look pro-actively for cost effective solutions, including by making more use of energy- efficient technologies.