Urbanization of the global population has fundamental ramification on economy, environment and society. While the SDGs have been established for the world as a whole, the rapid rate of urbanization makes cities critical entry points to address development challenges. Local governments and municipalities are crucial institutions as they are the first parties to tackle urbanization challenges.  Local governments and municipalities are crucial institutions for the urbanization process.  They can benefit from engaging the private sector to develop capacities in procurement, contract management, professional and often unionized labor management and finance and operating budgets to provide better services The report is focusing on analyzing private sector led market-based solutions to urbanization challenges. The report also aims to raise awareness and give a broader understanding to development practitioners, local governments, academicians and private sector companies on the role of private sector in providing inclusion in providing basic municipal services.

The research in the report examines some global practices of Municipally Owned Enterprises (MOEs) and highlights the role of private sector in development, particularly in terms of addressing urbanization challenges. MOEs are not widely covered in the literature, even though the model is not common in emerging markets, many would benefit from this model of service delivery. Creating MOEs thus is a possibility that contains significant untapped potential for development.