Public Private Partnership in India Examples

There is no dedicated PPP unit. The regulatory authority for public procurement and public service delegations is the Ministry of Finance. NITI Aayog has developed a model concession agreement for the operation and maintenance of electric buses in cities through PPP on Operating Costs (OPEX), a copy of which can be found on the NITI Aayog website in the Publications section. According to the proposed model, the private partner must bear the necessary capital expenditure (CAPEX) for the purchase of electric buses and for the operation and maintenance infrastructure, while the state transport authority assumes the operating costs per kilometre (also the supply parameters). The framework can be used to develop city-specific concessions for the deployment of electric buses and enable the government`s plan to advance zero-emission vehicles. The NSP serves as a medium-term roadmap for financing opportunities and fosters the willingness of the public developer as well as the private sector and institutional investors to finance the infrastructure gap. The objective is to provide a platform for departments to track asset developments and increase efficiency and transparency in the management of public assets. The private partner may be exposed to particular risks if it enters into a public-private partnership. Physical infrastructure such as roads or railways is associated with construction risks.

If the product is not delivered on time, exceeds cost estimates or has technical defects, the private partner usually bears the burden. In addition, the private partner is exposed to a risk of availability if it is not able to provide the promised service. A company may not meet safety standards or other relevant quality standards, for example. B if it operates a prison, hospital or school. Demand risk occurs when there are fewer users than expected for the service or infrastructure, e.B toll roads, bridges or tunnels. However, this risk can be transferred to the public partner if the latter agrees to pay a minimum fee, regardless of the request. The report provides an overview of international experience in capacity building for PPPs, in particular how PPP identification, procurement and management capacities in India can be strengthened and developed. Particular emphasis is placed on the possible role of the central government in the development of these capacities. The report addresses both organizational and individual capacities, the former encompassing policy and legal frameworks, as well as institutions and processes.

This report focuses on projects for which private investment has been made and for which the government is either the purchaser of services under the project or when it makes a financial contribution through direct investment or risk-taking. The main focal points are. Public-private partnerships typically have a contractual term of 25 to 30 years or more. Funding comes in part from the private sector, but requires payments from the public sector and/or users throughout the life of the project. The private partner participates in the design, implementation, implementation and financing of the project, while the public partner focuses on defining and monitoring compliance with the objectives. Risks are shared between public and private partners through a negotiation process, ideally, but not always based on each individual`s ability to assess, control and manage them. Although public works and services can be paid through a fee from the authority`s revenue budget, e.B. for hospital projects, concessions may include the right to direct payments from users – for example, on toll motorways. In cases such as notional tolls for motorways, payments are based on actual use of the service. With regard to wastewater treatment, payment is made with the fees charged by users.

In India, no city yet offers a continuous water supply (24 hours a day, 7 days a week). [dubious – discuss] The quality of the water supply is low, with water without income in most cities up to 40%. The poor are particularly affected by this situation and end up paying more for a liter of water than their richer counterparts. In an effort to expand access to water services and make water services more sustainable, the Indian government promoted PPPs in the water sector in the 1990s. However, this attempt failed because the government failed to create a good environment for private investment[8] and it was poorly prepared for the project. In addition, there has been considerable opposition to private sector involvement in water supply. The strategic objective of the Asset Monetization Program is to unlock the value of investments in public assets for future developments while leveraging private sector financing and efficiency to deliver infrastructure services. NITI Aayog has developed a draft model concession agreement for the development of cable car projects in PPP mode, a copy of which is available on the NITI Aayog website in the Publications section. NITI Aayog had commissioned pre-feasibility studies for the development of cable car-based public transport systems in Gangtok and Aizawl in PPP mode. The scarcity of land in urban centres in hilly areas, as well as the steep slopes of roads that limit road development, are a major obstacle to the development of public transport infrastructure. This puts pressure on the public transport system, as most commuters depend on taxis or private vehicles.

A need for a planned public transport system has arisen for cities such as Gangtok and Aizawl. Citing this need, NITI Aayog conducted pre-feasibility studies to assess the feasibility and initial feasibility of the PPP mode. As part of these efforts, the Gangtok project will be structured in PPP mode. The PPPLRC has developed this page to improve public access to information on PPP units. This page does not imply endorsement of the activities or competencies of the relevant PPP units by the World Bank, the PPPLRC or donors who support the website. The purpose of the PPPLRC is to keep the information on this page up-to-date and accurate. If we are aware of the errors, we will try to correct them. .