INDO-FRENCH SEMINAR Public-Private-Partnership Key Issues

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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 [phone]
• Email harjitanand_at_gmail.com

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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

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HIGHWAYS BRIDGES

• Key Issues
• Land Acquisition
• Environmental Clearance
• Qualification for Technical Bids Role of
  Financial Bid
• Shifting of Utilities
• Arbitration

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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

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RAILWAYS

• Key Issues
• Cooperation from the Railways
• Partnership potential from Corporate entities
  set-up by the Railways.

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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

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POWER

• Key Issues
• Pricing by the Regulator
• Transmission Distribution (T D) Losses
• Coordination with Public Authorities

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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

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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.

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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 _at_ 0.5 of monthly invoice

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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

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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

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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

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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.

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Expert
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PPP

• Willingness of a Public Authority to collaborate
  with a Private Company in a spirit of Partnership
• Symphony between Indian Rages and French notes