Public Private Partnership- Identification, Viability and Implementation

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Public Private Partnership- Identification,
Viability and Implementation

• 
  
• Prof. Yashvir Tyagi
• Department of Economics
• Univesity of Lucknow
  

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Public Private Partnership

• Need For PPP
• Objective of PPP
• Nature of PPP
• Scope of PPP

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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.)

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PPP

• It is a-
• Long term contractual partnership between
  public private agencies for
• Designing
• Financing
• Implementing
• Operating managing an infrastructural service

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PPP

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

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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

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Potential Areas of PPP

• Roads
• Telecommunication
• Transport
• Health
• Education
• Irrigation
• Marketing
• Energy
• Social Welfare

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Preparing for the Viability of a PPP Project

• General Aspects
• Name of the Project
• Location
• Administrative Department/Ministry
• Implementing Agency

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Project Description

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

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Financing Arrangements

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

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Clearances from Regulatory Bodies

• Environmental
• Forest
• Local, State, Central Govt.
• Govt. Guarantees
• Compensation to Citizens

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Criteria for Short listing

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

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Terms of Concession Agreement

• Nature of Concession
• Justification of Concession
• Period of Concession
• Period of Construction
• Procurement of Materials
• Supervision

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Operation Management

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

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Miscellaneous

• Audit
• Dispute Setllement

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Thanks