s1_110930 ppp presn_s.r ramanujam
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8/3/2019 S1_110930 PPP Presn_S.R Ramanujam
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PPPs in India
Status, Achievements and Challenges
S.R. Ramanujam
The views expressed in these presentations are the views of the author and do not necessarily reflect the views or policies of the Asian Development
Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning
the same.
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PPPs in India - Status
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National Government has a strong focus on
infrastructure investments
Source: Planning Commission
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PPPs are making a strong contribution to
infrastructure investments
Source: Planning Commission
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Energy and telecom have contributed the
maximum share in the past
Source: Planning Commission
Note: Data represents investments that would be realised till 2011-12. Share of highways will
increase significantly since a large number of awarded projects will be executed in coming
years.
Share of various sectors in infrastructure PPPs
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PPP penetration has grown strongly in transport
sector
Source: Planning Commission
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PPP projects now spread across several sectors
Sector Number of projects Project Cost in bn USD
Roads 405 36.1
Ports 61 16.5
Airports 5 3.9
Railways 4 0.3
Tourism 50 0.92
Urban Development
(incl metro) 152 6.02
Healthcare 8 0.37
Education 17 0.38
Total 702 64.51
Source: Department of Economic Affairs (Infrastructure division), Government of India
PPP in India Database –
PPP projects awarded, under construction or in operation
Note: Excluding telecom and energy projects. Categorisation and definitions vary as compared
to Planning Commission.
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Power TransmissionPower Transmission
HighwaysHighways
PortsPorts
RuralRural
Power DistributionPower Distribution
WaterWater
AirportsAirports
Urban InfrastructureUrban Infrastructure
Text and Listings− Eight text divisions
Note: Sample projects in each sector
JhajjarMaru
Aravalli
Jhajjar
Maru
Aravalli
Delhi Gurgaon
Baroda – Halol
Panagarh – PansitVivekananda bridge
Delhi Gurgaon
Baroda – Halol
Panagarh – PansitVivekananda bridge
PipavavMundra
Hazira
JNPT
Vallarpadam
Pipavav
Mundra
Hazira
JNPT
Vallarpadam
PURAPURA
Delhi
Bhiwandi
Agra
Delhi
Bhiwandi
Agra
KUWASIP
Nagpur
AurangabadLatur
Salt Lake
KUWASIP
Nagpur
AurangabadLatur
Salt Lake
DelhiMumbai
Bangalore
Hyderabad
Delhi
Mumbai
Bangalore
Hyderabad
Hyderabad SWM
Kohlapur W/water
Dehradun SWMDehradun terminal
Amristar terminal
Hyderabad SWM
Kohlapur W/water
Dehradun SWMDehradun terminal
Amristar terminal
PPP projects now spread across several
sectors
Indl ParksIndl Parks
Pharma cityPharma city
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PPPs continue to be a priority in national
planning
• Efforts to attract private investment into infrastructure
through the PPP route have met with considerablesuccess….
• …PPP based development needs to be encouragedwherever feasible.
• PPPs with appropriate regulation and concern for
equity should also be encouraged in social sectors,such as health and education. Several StatesGovernments are already taking steps in this direction.
Source: Draft approach to the 12th Five Year Plan, August 2011, Planning Commission
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The PPP Eco-System in India
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Sectoral laws and regulations enabling or permitting PPPs
e. Electricity Act 2003, Indian Ports Act
Sectoral laws and regulations enabling or permitting PPPs
e. Electricity Act 2003, Indian Ports Act
Central Line Ministries, Statutory bodies
e.g Ministry of Power, NHAI
Central Line Ministries, Statutory bodies
e.g Ministry of Power, NHAI
Cabinet Committee On InfrastructureCabinet Committee On Infrastructure
Developers. Operators, Contractors, Industry associationsDevelopers. Operators, Contractors, Industry associations
Department of Economic Affairs
Planning Commission
Department of Economic Affairs
Planning Commission
State Infrastructure Development
Companies/ Boards
e.g. Gujarat Infrastructure Development
Board
State Infrastructure Development
Companies/ Boards
e.g. Gujarat Infrastructure Development
Board
Line Ministries in the States, Statutory
bodies, Utilities
e.g Madhya Pradesh State Road
Development Corporation
Line Ministries in the States, Statutory
bodies, Utilities
e.g Madhya Pradesh State Road
Development Corporation
State Urban Development/ Finance
Corporations, Municipal Funds
State Urban Development/ FinanceCorporations, Municipal Funds
Urban Local Bodies, Metropolitan
Development Authorities
Urban Local Bodies, MetropolitanDevelopment Authorities
Focussed infra
financiers
Focussed infra
financiersState owned
commercial banks
State owned
commercial banks
Private and intl
banks
Private and intl
banksPrivate equity
funds
Private equity
fundsInvestment
banks, arrangers
Investment
banks, arrangers
Sector regulators
e.g Airports Economic Regulatory Authority, Electricity Regulatory Commissions
Sector regulators
e.g Airports Economic Regulatory Authority, Electricity Regulatory Commissions
Infrastructure focussedvoluntary organisationsInfrastructure focussedvoluntary organisations
Transactionadvisors, Auditors
Transactionadvisors, Auditors
Specialisedinfrastructure media
Specialisedinfrastructure media
Research and traininginstitutions
Research and traininginstitutions
S e
c t o r a g e n c i e s
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S e c t o r P r
i o r i t y
S e c t o r P r i o r i t y
F i n a n c i n g i n s t r u m e n t s
F i n a n c i n g i n
s t r u m e n t s
P r o j e c t s u
p p o r t
P r o j e c t s u p p o r t
F i s c a l b e
n e f i t s
F i s c a l b e n e f i t s
Enablers – Financing
PPP is first choice execution model in
highways, ports and airports sector
PPPs are integrated into sector plans
Solar Mission National Highways Development
Prorgamme
Jawaharlal Nehru National
Renewal Mission
PPP is first choice execution model in
highways, ports and airports sector
PPPs are integrated into sector plans
Solar Mission National Highways Development
Prorgamme
Jawaharlal Nehru National
Renewal Mission
Scheme for Infrastructure Financing
through IIFCL
165 projects, 52 bn USD
project cost, 4.9bn USD
sanctioned, 2.6 bn disbursed
(Dec 2010)
Infrastructure Debt Fund
Scheme for Infrastructure Financing
through IIFCL
165 projects, 52 bn USD
project cost, 4.9bn USD
sanctioned, 2.6 bn disbursed
(Dec 2010)
Infrastructure Debt Fund
Viability Gap Fund
100 Projects, 9.8 bn USD project
cost, 1.82 bn USD viability gap
assistance
India Infrastructure Project
Development Fund
40 projects already approved
Pilot projects initiative
Being replicated by States
Viability Gap Fund
100 Projects, 9.8 bn USD project
cost, 1.82 bn USD viability gap
assistance
India Infrastructure Project
Development Fund
40 projects already approved
Pilot projects initiative
Being replicated by States
Tax exemptions
Infrastructure Companies
Banks and intermediaries
Bond investors
Tax exemptions
Infrastructure Companies
Banks and intermediaries
Bond investors
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A p p r o v a l s
A p p r
o v a l s
P P P p o l i c i e s
P P P p o l i c i e s
S t a n d a r d i s a t i o n
S t a n d a r
d i s a t i o n
F a c i l i t a t
i o n
F a c i l i t a t i o n
Enablers – Policy and Process
Cabinet Committee on
Infrastructure
PPP Appraisal Committee for
Central sector projects
Empowerd Institution/ Empowered
Committee for approving viability
gap projects
Similar processes at State level
Cabinet Committee on
Infrastructure
PPP Appraisal Committee for
Central sector projects
Empowerd Institution/ Empowered
Committee for approving viability
gap projects
Similar processes at State level
PPP definition
PPP policy
PPP rules
PPP guidance manual
PPP definition
PPP policy
PPP rules
PPP guidance manual
Model Concession Agreements
Standardised procurement
documents Developers
Consultants
Model Concession Agreements
Standardised procurement
documents Developers
Consultants
Supporting PPP cells in States and
central line ministries
Capacity Building Programmes
Knowledge sharing workshops
Online PPP toolkit
Sectoral PPP toolkits
Guidelines on specific topics (PPP
monitoring)
Panel of transaction advisors
Supporting PPP cells in States and
central line ministries
Capacity Building Programmes
Knowledge sharing workshops Online PPP toolkit
Sectoral PPP toolkits
Guidelines on specific topics (PPP
monitoring)
Panel of transaction advisors
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ADB Involvement in infrastructure
National Highways Authority
Urban Sector Improvement Programmes
National Highways Authority
Urban Sector Improvement Programmes
FI loan to IIFCL
Non Sovereign Loans and Private Sector LoansBangalore Metro
Energy sector loans
FI loan to IIFCL
Non Sovereign Loans and Private Sector LoansBangalore Metro
Energy sector loans
Pilot Projects
PPP Cells
Knowledge and Policy support
Pilot Projects
PPP Cells
Knowledge and Policy support
Sovereign
Loans
Financing
Enabling
PPPs
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Achievements and challenges
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Achievements so far
Political priority for infrastructurePolitical priority for infrastructure
Political acceptance of PPPsPolitical acceptance of PPPs
Sector specific solutionsSector specific solutions
Support to make projects viableSupport to make projects viable
Domestic financingDomestic financing
StandardisationStandardisation
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What has worked and what hasn’t
Power Roads Ports AirportUrban
TranspW & S Health Edu. Rural
Political Clarity
Bankable revenue
model
Enabling
framework
Project pipeline
Implementation
bottlenecks
Expanding the PPP momentum in other sectors will be challenging
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Challenges
Brownfield projects, Networks – Water, Slum renewal, Power distribution, urban
transport
Brownfield projects, Networks – Water, Slum renewal, Power distribution, urban
transport
Focus on service delivery, not just asset creation - Health, EducationFocus on service delivery, not just asset creation - Health, Education
Project owners are at State and city level - Understanding and acceptance variesProject owners are at State and city level - Understanding and acceptance varies
Substantially unviable sectors – Primary health and educationSubstantially unviable sectors – Primary health and education
Financing gaps in the domestic marketFinancing gaps in the domestic market
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What should be the focus
Sector specific solutionsSector specific solutions
New models for service delivery, performance monitoringNew models for service delivery, performance monitoring
New financing products to plug the gapsNew financing products to plug the gaps
Blending plan programmes with private investmentBlending plan programmes with private investment
Engagement with States and cities to deepen the PPP penetrationEngagement with States and cities to deepen the PPP penetration
PPPs for performance, technology and scaling up, Not just for
financing
PPPs for performance, technology and scaling up, Not just for
financing
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Thank You
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