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National Public Private Partnership Policy- 2011 Group 11

National Public Private Partnership Policy- 2011 Group 11. Group Members. Shankar Lal Verma Md. Imteaz Alam Somesh Suman Md. Sajid Sultan Madhura Roy Satyajeet Kumar Preeti Singh Kapil Chandrawal Kalpesh Rupavatiya K.K. Mishra. Definition.

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National Public Private Partnership Policy- 2011 Group 11

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  1. National Public Private Partnership Policy-2011Group 11

  2. Group Members • Shankar LalVerma • Md. ImteazAlam • SomeshSuman • Md. Sajid Sultan • Madhura Roy • Satyajeet Kumar • Preeti Singh • KapilChandrawal • KalpeshRupavatiya • K.K. Mishra

  3. Definition • Arrangement between government & private sector entity for public asset creation or public service delivery • For specified period of time • Performance measurable by Public entity or its representative

  4. Objectives of PPP • Harness Private Sector efficiencies • Focus of Life Cycle approach for development of any project • Innovation and Technological improvements • Provision of affordable and improved services

  5. Essential Conditions of PPP • Investments made by Private sector entity • Risk sharing with the private sector • Performance linked fee payment structure &/or through user charges • Conformance to performance standards

  6. Why... • PPPs help governments meet demands for the development of modern and efficient facilities, infrastructure and services while providing value for taxpayers

  7. PPP MODELS • Design-Build (DB) • Design Build-Operate (DBO) • Operation & Maintenance Contract (O & M) • Design-Build-Finance-Maintain (DBFM) • Design-Build-Finance-Maintain-Operate (DBFMO) • Build-Own-Operate (BOO) • Build Operate Transfer (BOT) • Build-Own-Operate-Transfer (BOOT) • Buy Build Operate (BBO) • Build-Own-Lease-Transfer (BOLT) • Lease Renovate Operate and Transfer (LROT)

  8. 2. Feasibility 3. Plan & Test 4. Procure 5. Implement 6. Operations Six Distinct Phases 1. Genesis

  9. Principles governing Implementation • Fair and Transparent Framework • Plan, Priorities and Manage Projects • Process for selection & ensure efficient governance • Protect interest of end users • Ensure efficient delivery • Achieve efficiency in deployment of investment • Liability clause

  10. Principles governing Implementation continued… • Recognize the imperative to accelerate PPP • Critical intervention envisaged • Enhancing transparency in PPP projects • PPP rules • Auctioning • Smooth implementation of Project • Preferred Model of implementation

  11. Government Supported Models • BOT • User Fee Based • Annuity Based • Performance Based • Turnkey Contracts • BLT • DBFOT • OMT • BOO

  12. Public Good • Public Good is a good that is both Non-excludable and Non-rivalrous • Examples: • Infrastructure • Airports/Ports • Roadways • Railways • Health • Education • Telecom • Energy • R&D

  13. Merits • Easing Budgetary Constraints • Value for money issue • A realistic control of cost • A streamlined construction schedule and reliable project implementation enable enhanced economic development • Assets creation, maintenance and service delivery • Set on sustainable and environmentally - Compatible development • Social benefits • Transparency • Transfer of technology • Project stability • Focusing the Role of Public Authority on its Regulatory function

  14. Demerits • Both the public entity and the private firm is seeking to gain from the relationship-user ends up paying more • Involves high risk level • Long term contracts not reliable

  15. International PerspectiveUSA • 1st Generation PPP Projects: Asset Monetization -Indiana Toll Road • 2nd Generation PPP Projects: Variable pricing -the Port of Miami Tunnel, I-595 express lanes • 3rd Generation PPP Projects: Value-for-money (VfM), Cost-benefit analysis -Dulles Toll Road, State Highways 121

  16. Britain • 1992 - private finance initiative (PFI), -focussed on reducing the Public Sector Borrowing Requirement • 1997 - expanded the PFI initiative shift the emphasis to the achievement of "value for money” • London Underground PPP

  17. CANADA • 1993 -Canadian Council for Public-Private Partnerships • 2009 - creation of a crown corporation, •  National Awards Program  • Ontario Highway 407. • Canada Linerapid transit

  18. Other Examples • European PPP Expertise Centre (EPEC) • Roll Back Malaria (RBM) Partnership • Australia -Airport Link, Cross City Tunnel,Sydney Harbour Tunnel, • Global public–private partnership (GPPP)

  19. Stakeholders in PPPs • National organizations • Central & Local government bodies • Implementing Firm • End users • Employees • Middlemen • Local businesses (audit commission, regulatory bodies) • Pressure groups • Residents (electorate, tax payers)

  20. Success Stories • T3 at IGI Airport • Yamuna Expressway • AkshayPatra Foundation • Gujrat Solar Power • Electricity (RVVNL)

  21. Let downs in PPPs • Hyderabad Metro:Maytas • VadodraHalol-Toll project • KG – Basin • Nuclear Power plants installation

  22. PPPP: Public private panchayat partnership Social audit committee Community led: For low cost projects For non-durable assets At micro- level Private panchayat partnership: In contract farming In developing agriculture market Alternate Policy Recommendations

  23. Applicable area: high awareness level Exploring new areas: Agri-marketing SHGs Contract farming Energy sectors Conclusion

  24. Conclusion contd……… • Transparent: RTI compliance • Accountability: RFD compliance • Social Audit : Inclusiveness • SIA/EIA compliance

  25. Thank You

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