Public Private Partnership- Identification, Viability and Implementation Prof. Yashvir Tyagi Prof. Yashvir Tyagi Department of Economics Department of Economics Univesity of Lucknow Univesity of Lucknow

Public Private Partnership Need For PPP Need For PPP Objective of PPP Objective of PPP Nature of PPP Nature of PPP Scope of PPP Scope of PPP

Definition of PPP “PPP means a project based on contract or concession agreement between the govt. or a statutory entity on the one side and a private sector company on the other side for delivering an infrastructure service on payment of user charges” (G.O.I.) “PPP means a project based on contract or concession agreement between the govt. or a statutory entity on the one side and a private sector company on the other side for delivering an infrastructure service on payment of user charges” (G.O.I.)

PPP It is a- It is a- Long term contractual partnership between public & private agencies for: Long term contractual partnership between public & private agencies for:DesigningFinancingImplementing Operating & managing an infrastructural service

PPP Collaboration or partnership is based on the expertise of each partner through appropriate allocation of: Collaboration or partnership is based on the expertise of each partner through appropriate allocation of:. Resources. Risks. Rewards. Responsibilities

Identification Of Projects Assessment of the need for existing /new service Review of present status of delivery of service Identifying the gap SWOT analysis may be conducted

Potential Areas of PPP Roads RoadsTelecommunicationTransportHealthEducation Irrigation IrrigationMarketingEnergy Social Welfare

Preparing for the Viability of a PPP Project General Aspects: Name of the Project Location Administrative Department/Ministry Implementing Agency

Project Description Aims and Objectives, Justification Aims and Objectives, Justification Possible Alternatives Estimated Capital cost Major heads of Expenditure Phasing of Investment Implementation Schedule Implementation Schedule

Financing Arrangements Sources of Financing-Debt, Equity, Grants etc. Fixation of Tariff/user charges Indicate Revenue streams of the project Indicate Revenue streams of the project Calculating the NPV, ERR,IRR Funding Agencies- Domestic, Foreign Funding Agencies- Domestic, Foreign

Clearances from Regulatory Bodies Environmental Environmental Forest Forest Local, State, Central Govt. Govt. Guarantees Compensation to Citizens Compensation to Citizens

Criteria for Short listing One stage process Two stage process Two stage process Criteria for Evaluating the Bids Preparing the bid documents Legal Legal Technical Technical Administrative Administrative Clearances Clearances

Terms of Concession Agreement Nature of Concession Nature of Concession Justification of Concession Justification of Concession Period of Concession Period of Concession Period of Construction Procurement of Materials Procurement of Materials Supervision Supervision

Operation & Management Monitoring the Construction Joint or Single management- Roles& responsibilities Laying down the Standards Laying down the Standards Penalties for Violations Penalties for Violations Delays Delays Safety Safety Financial Financial Liabilities of the Partners Liabilities of the Partners Closure Clause Closure Clause

Miscellaneous Audit Audit Dispute Setllement Dispute Setllement