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Public Private Partnership- Identification, Viability and Implementation. Prof. Yashvir Tyagi Department of Economics Univesity of Lucknow . Public Private Partnership. Need For PPP Objective of PPP Nature of PPP
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Public Private Partnership- Identification, Viability and Implementation Prof. Yashvir Tyagi Department of Economics Univesity of Lucknow
Public Private Partnership • Need For PPP • Objective of PPP • Nature 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 It is a- Long term contractual partnership between public & private agencies for: • Designing • Financing • Implementing • Operating & managing an infrastructural service
PPP 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 • Telecommunication • Transport • Health • Education • Irrigation • Marketing • Energy • 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 • Possible Alternatives • Estimated Capital cost • Major heads of Expenditure • Phasing of Investment • Implementation Schedule
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
Clearances from Regulatory Bodies • Environmental • Forest • Local, State, Central Govt. • Govt. Guarantees • Compensation to Citizens
Criteria for Short listing • One stage process • Two stage process • Criteria for Evaluating the Bids • Preparing the bid documents • Legal • Technical • Administrative Clearances
Terms of Concession Agreement • Nature of Concession • Justification of Concession • Period of Concession • Period of Construction • Procurement of Materials • Supervision
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
Miscellaneous • Audit • Dispute Setllement