PPP Initiatives

back

• To assist, guide PPP Cells of Line Departments in carrying forward their PPP initiatives.

• To interact with Central Govt./ various Agencies for Viability Gap Funding (VGF) and other assistances.

• To provide a research unit-cum-data bank by analyzing all National & International PPP initiatives, their structuring, experiences, strength & weaknesses, sharing their domain knowledge, provide subject matter expertise, facilitate capacity building and training of officials.

• Serve as Nodal Department/ Secretariat for deliberating and obtaining Empowered Committee on Infrastructure (ECI) & High Level Clearance Authority (HLCA) approval.

Implementation Details And Way Forward

• Each Department is to prepare a PPP Plan as a Plan outside Plan wherein the projects and sectors it envisages would be amenable to PPP structuring and the amount of additional private sector resources it would try to attract.

• Each Department has to set up a PPP Cell with a Nodal Officer to look after the PPP projects including co-ordination with State PPP Cell.

• Each Department has to identify, conceptualize probable PPP projects and prepare a preliminary report/ concept note wherein the need for the project, the benefits of doing under PPP mode, the responsibilities of the State and the concessionaires, outlines of the project and its structure, its main features, value for money test etc may be indicated. This would be done by the department along with the State PPP Cell.

• All projects should normally be tested for PPP amenability – strong reasons {Economic Rate of Return (ERR) if not Internal Rate of Return (IRR)} for fully state funded projects.

• The above shelf of probable PPP projects is to be placed before the ECI through the State PPP Cell for prioritization and taking approval to go ahead.

• After in-principle approval of ECI/ HLCA as the case may be on the basis of concept note, the Departments will have to get prepared an Initial Screening Report (ISR) of projects either in-house or through suitably hired consultants.

• After ascertaining the feasibility of the projects through the ISR, the same shall again be put up to ECI/ HLCA as the case may be through the State PPP Cell for approval and for the further modalities including preparation of Detailed Project Report (DPR), going for Design Build Finance Operate (DBFO), other structuring details, concessions required, details of land requirement of VGF, types of State support, value for money analysis, proper risk allocation etc.

• Proposal for VGF, if any, is to be processed through the State PPP Cell, at all stages.

• The Departments have to go for preparation of bid documents and also adoption & modification of Model Concession Agreement (MCA)s.

• The bid & concession documents and the outcome of bid process is to be got approved from ECI/ HLCA as the case may be before award of the project to the Developer.

• Appropriate structure to manage, run and supervise the project both in its construction and Operation & Maintenance stage.

• Provision for contingency of failure & abandoning should be made at the conceptualization, Project report state.

Modalities For Operationalisation Of PPP Initiatives In Orissa

• Departments should garner additional resources and increase their investment size through a PPP Plan which is a Plan outside Plan. State Government should consider incentivizing departments for their success in raising additional resources through PPP.

• Departments should make a PPP Plan, vision and a shelf of probable PPP projects in line with their Plan proposals and as an additionality.

• Each Department has to identify, conceptualize, structure individual PPP projects in association with the State PPP Cell.

• Each Department has to own its PPP projects and initiatives.

• All projects should normally be tested for PPP amenability – strong reasons {Economic Rate of Return (ERR) if not Internal Rate of Return (IRR)} for fully state funded projects.

• Evaluation on VFM (Value for money)

• Provision for risk allocations to the party best suited to manage the risk as the success of the project is of prime importance.

• A win-win situation for all as shortchanging would be disastrous and lead to abandoning of the project.

• Provision for contingency of failure & abandoning should be made at the conceptualization, Project report state.

• Provision for a strong mechanism for overseeing the project & continuance of relationship due to long gestation period. Hence, there is a need for proper standard documents.

Browse: PPP Initiatives in Other States