Page 28 - Building digital public infrastructure for cities and communities

3.2 Governance models promoting sustainable development

One of the key challenges in advancing sustainable DPI governance lies in the complexity and
fragmentation of institutional roles. Many countries face difficulties in coordinating efforts across
multiple agencies, sectors and levels of government. For instance, India’s Digital India initiative
has made substantial strides but continues to grapple with infrastructure gaps. While demand
for digital services grows rapidly, the availability of public Internet hotspots remains far below the
estimated levels needed to ensure widespread access (Parsheera, 2019).

Ensuring inclusive and participatory design processes is equally critical. Lessons from various
contexts show the importance of engaging diverse stakeholders from the outset. In Kenya, for
example, the rollout of the Huduma Namba digital ID system encountered legal and societal
pushback, partly due to limited involvement of civil society and marginalized communities during
early planning stages (Kennedy, 2025).

A number of countries have introduced foundational DPI elements such as national ID systems,
ahead of establishing comprehensive legal and regulatory safeguards. Nigeria illustrates a broader
concern seen in multiple regions, namely, the need for strong data protection frameworks to
build public trust and prevent misuse (Benjamin, 2025). Robust accountability mechanisms remain
essential but are often underdeveloped. Additionally, aligning DPI development with broader
sustainability goals is increasingly urgent. Across various national contexts, data centres – central to
digital infrastructure – are expanding rapidly, sometimes without integration into national climate
strategies, raising concerns about energy consumption and environmental impact (UNEP, 2024).

3.3 Funding models and public-private partnerships

Public-private partnerships (PPPs) have emerged as a strategic funding model to bridge fiscal
constraints while leveraging private-sector resources and innovation, critical for DPI. In high-income
countries, governments often rely on direct public funding, particularly during initial phases of DPI
deployment. By contrast, Low- and Middle-Income Countries (LMICs) intensively deploy blended
finance frameworks, combining public financing with private investment, concessional loans and
grant support to scale DPI initiatives aligned with UN SDGs (Bandura et al., 2024).

Empirical studies reveal a mixed record from PPPs. OECD (2018) reports that PPP investments
account for just 0–5 per cent of infrastructure spending in advanced economies and less than 25 per
cent in emerging economies, partly due to the complexity and risks inherent in PPP arrangements.
A 2016 World Bank survey underscores that preparation and transaction costs, excluding capital,
are often significantly higher for PPP contracts versus traditional procurement, with governments
and donors commonly bearing much of this burden (Leigland, 2018).

Nevertheless, when structured effectively, PPPs can deliver better value for money. When compared
to conventional public procurement, PPPs meet cost and time targets more reliably; this is mainly
due to stronger risk allocation to parties best equipped to mitigate them (Tiwari & Dugal, 2024).

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