Abstract Development and management of cities is one of the major challenges of the time as well as one of the most complex tasks of our societies. Municipalities are increasingly becoming unable to satisfy the city dwellers with urban basic service delivery. Public sectors in partnership with the private ones, for instance, private companies, financial companies and business classes can work together for not only efficient service delivery but also for municipal plan preparation and implementation in the new world order. New governance does not mean the end or decline of the state but transformation and adaptation of the state to the society it is currently emergence in. worldwide ideological shift towards market principles is another explanation for the emergence of new form of urban governance. In this context, Public-Private Partnership (PPP) might be an effective solution in the municipal services delivery. The present study demonstrates the prospects of PPP and