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Mainstreaming Public Private Partnerships | |
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| Recognising that
strengthening the capacities of different
levels of government to conceptualise,
structure and manage PPPs will lead to
more and better PPPs, Department of
Economic Affairs is facilitating
mainstreaming Public Private Partnerships
through Technical Assistance from Asian
Development Bank. The primary objective is
effective institutionalization of the PPP
cells to deliver their mandate through
provision of 'in-house' consultancy
services to each of the selected entities
at the Center and State level. |
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Technical
Assistance
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Institutionalization of PPP skills
includes
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refining the PPP policy and regulatory
framework,
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meeting compliance/public safety norms,
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improving MIS,
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improving bidding documents and
procedures,
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determining risk sharing,
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conducting value-added
research/analysis, and
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determining adequate monitoring
arrangements
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The selected entities will be provided
assistance for a period till December 2009
in the form of:
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1 PPP Expert on an individual basis
focusing on project financial analysis and
risk management;
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1 Management Information Systems expert
(on an individual basis) focusing on
information management and
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a panel of three legal experts on
retainer basis (expected input:
intermittent over the year but
approximately 6-7 months throughout the
year) to provide legal expertise on PPPs
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Eligibility
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The States wishing to avail this
Technical Assistance are required to
enter into an MOU with DEA detailing
steps that would be taken to promote
PPPs in the State.
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The MOU requires the State
Government to:
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Set up a PPP Cell as the nodal
agency for processing all PPP projects
in the State with a designated PPP Nodal
Officer and defined scope of work.
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Develop a robust shelf of projects
amenable for PPPs and adhere to the
following set of targets on the level of
PPPs in the State:
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During 2007-08 - bid out at least 3
projects with a total cost of Rs.750
crores or more in atleast two sectors; -
During 2008-09 - bid out at least 5
projects with a total cost of Rs.1,250
crores or more in atleast three sectors; -
During 2009-10 - bid out at least 5
projects with a total cost of Rs.1,500
crores or more in atleast four sectors.
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Commit to establish such policies
and regulatory and governance frameworks
in the identified infrastructure sectors
to enable a transparent and effective
private sector participation
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Prepare a "Plan of PPP projects" in
conjunction with its Annual Plan.
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Commit to (i) adopt standard
concession agreements for PPP projects
in defined infrastructure sectors; (ii)
adopt competitive bidding procedures for
bidding and awarding of infrastructure
projects under defined rules and
procedures according to best
international commercial practices and
GOI guidelines; (iii) designate a
State-level dispute resolution mechanism
for the speedy resolution of disputes
relating to PPP projects; and (iv) adopt
formal State policies on environment,
resettlement and social safeguards with
respect to the implementation of
infrastructure projects, according to
best international commercial practices.
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Outcomes
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| The technical assistance aims to: |
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Help the participating State implement PPP
schemes effectively and efficiently;
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Enhance capacity of PPP cells in
participating entities to prepare,
evaluate, and appraise PPPs in
infrastructure;
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Significantly improve monitoring of
overall progress in PPPs in infrastructure
at both central and state levels through
well-knit databases;
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Increase awareness among potential private
sector partners about the project cycle of
PPP projects in infrastructure, and the
expectations of Government with respect to
value for money; and
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Over the long term, an increase in private
sector participation in infrastructure
development and management throughout the
country.
Orientation
Programme
- 3
January
2008
Review Meeting - 5 June 2008
Legal Panel
Retainer Panel for Transaction Advisory Services
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