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INDO-FRENCH SEMINAR Public-Private-Partnership Key Issues. by Dr. Harjit S. Anand Co-President, The EuroIndia Centre Telephones: +91-11-2615-3805 / 3806 Mobile: +91-98181-12427 Email: harjitanand@gmail.com. HIGHWAYS & BRIDGES. Framework
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INDO-FRENCH SEMINARPublic-Private-Partnership Key Issues by Dr. Harjit S. Anand Co-President, The EuroIndia Centre Telephones: +91-11-2615-3805 / 3806 Mobile: +91-98181-12427 Email: harjitanand@gmail.com
HIGHWAYS & BRIDGES • Framework • Development of world class Infrastructure through PPP is a critical goal of Indian Development Planning presided by the CCI • NHDP involving a total investment of about 50 Billion USD upto 2012 • BOT & Design, Build, Finance & Operate (DBFC) basis especially in the Golden Quadrilateral Project
HIGHWAYS & BRIDGES • Key Issues • Land Acquisition • Environmental Clearance • Qualification for Technical Bids & Role of Financial Bid • Shifting of Utilities • Arbitration
RAILWAYS • Framework • Build dedicated Freight Corridors in the Western & Eastern high density routes • CONCOR: The Container Movement has been thrown open to competition by Private Sector entities for running container trains • PPP envisaged in new routes, railway stations, logistics parks, cargo aggregation and warehousing
RAILWAYS • Key Issues • Cooperation from the Railways • Partnership potential from Corporate entities set-up by the Railways.
POWER • Framework • India has the fifth largest electricity generation capacity in the world • Trifurcation of State Electricity Boards • Policy framework: Electricity Act 2003 & National Electricity Policy, 2005 • Private sector participation is increasing especially in Generation & Distribution • Incentives: Income Tax holiday for a block of 10 years in the first fifteen years of operation
POWER • Key Issues • Pricing by the Regulator • Transmission & Distribution (T & D) Losses • Coordination with Public Authorities
URBAN DEVELOPMENT, HOUSING & POVERTY ALLEVIATION • Framework • Ministry of Urban Development has issued the Guidelines for Sector Reform and for successful PPP to all states for improving water supply and sanitation services • The Guidelines include ‘model contracts’ for • services, • operation and management, & • capital projects
URBAN DEVELOPMENT, HOUSING & POVERTY ALLEVIATION • Case of PPP in Urban Waste Management by Chennai Corporation • Functions: • Sweeping & waste collection • Storing/disposal of waste • Construction and maintenance • Training • Service Provider: CES-Ony X, subsidiary of CGEA Asia Holdings Ltd.
URBAN DEVELOPMENT, HOUSING & POVERTY ALLEVIATION • Contract Structure: Public funding, private sector delivery with 7 year private management • Selection Criteria (Competition Building / Negotiation) • Payment Mechanism: Monthly disbursement on a per tonne of waste collected with minimum 1000 tonnes per day • Penalties: Unattended complaints recorded by Citizen Group @ 0.5% of monthly invoice
URBAN DEVELOPMENT, HOUSING & POVERTY ALLEVIATION • Key Issues • Coordination with Municipal Corporation • Desegregation of garbage and livelihoods of waste pickers • Role of Citizens Group & Buying of Penalties
THE FISCAL-FINANCE DIMENSIONS & MODELLING • Tax-free Infrastructure Bonds • Exemption from Capital Gains Tax Bonds • Cess on Fuel • Cess on Mega Events • Small thin & competitive City Team & outsourcing • Municipal land or building & Private Initiative
THE FISCAL-FINANCE DIMENSIONS & MODELLING • SPV Model • Land Acquisition & Concessionaire Toll-tax Model with option for Facilities • Viability Gap Finding • Innovative Models for In situ Slum Redevelopments • Taxes & Duties
DIFFERENCE BETWEEN TAX & DUTY • Tax is something a husband has to pay to his wife every month. Duty is something which a wife fulfills occasionally every month! • All about Marital Accord between Public Authority as the husband and Private Company as the wife in a Patrilineal System.
PPP • Willingness of a Public Authority to collaborate with a Private Company in a spirit of Partnership • Symphony between Indian Rages and French notes