Beruflich Dokumente
Kultur Dokumente
on
Public Private Partnerships
in Fiduciary Forum, 2010
at The World Bank, Washington, D.C.
(1st 5th March, 2010)
By
Mr. B.K. Chaturvedi
Member, Planning Commission
Government of India
New Delhi
Background
CONTENTS
Development
Case Studies
NOIDA Toll Bridge (Slide No. 31)
Bengaluru Airport (Slide No. 32)
Indian Experience
Lessons Learnt ( (Slides No. 33 34)
2
Indian Economy
One billion people. 1/6th of worlds population.
GDP of $ 1.2 trillion. Worlds 4th largest, in PPP
terms.
GDP growth during 2004-08 between 8% - 9%.
In spite of global slowdown Indian economy grew at
6.7% during 2008-09 & 7% - 7.5% in 2009-10, even
as global GDP fell by 0.8% in 2009.
Large share of young persons with higher skill levels
Foreign Exchange reserves of $ 279 billion &
growing.
3
Economic Fundamentals
Central Govt.s Fiscal Deficit < 3.2% in 2007-08. Increased
in 2008-09 & 2009-10 as stimulus provided to maintain
growth. Plans to revert back gradually to a fiscal deficit of
around 3% during the next 3 - 4 years.
Savings rate increased to 36% (2007-08). Declined in
2008-09 to 32% due to increase in Govt. deficit.
Total GDP
Non-Farm GDP
Industrial GDP
GDP fell by
200 bps,
industrial
GDP by
much more.
Growth
recovery has
been equally
sharp
10%
8%
6%
4%
2%
0%
Q-1
Q-2
Q-3
2007-08
Q-4
Q-1
Q-2
Q-3
2008-09
Q-4
Q-1
Q-2
Q-3
Q-4
2009-10
40%
Has shown a
dip in 2008/09
due to fall in
inventory
Expected to be
37-38% of GDP
in next two
years
35%
30%
25%
20%
15%
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
10%
Sector
Share
%
166.6
32.4
78.5
15.3
65.5
12.7
Ports
22.0
4.3
7.7
1.5
64.6
12.6
Others
109.1
21.2
Total
514.0
100.0
Airports
Telecommunications
92.7
90
87.1
80
US $ in Billions
70
60
50
40.9
40
30
33.4
21.6
20
10
44.8
13.7
5.3
0
2000-01
2004-05
2007-08
Total
Of which Private
2008-09
9
2008-09
US $ in Billions
Electricity
16.8
5.8
Railways
10.7
22.0
Airports
5.9
7.8
2.9
6.0
0.2
Communications
28.7
2.7
16.3
% of GDP
Sector
2004-05
2008-09
Public
2.8%
4.1%
Private
2.0%
3.9%
Total
4.8%
8.0%
10
11
Regulatory Mechanism
Current Regulatory Mechanism in India provides for Competition Act to ensure
free & fair competition & has strong safeguards. Set up only recently under the
Competition Act & has been operationalized recently (2009).
Sectoral regulators established:
Airport : Airport Economic Regulatory Authority set up under the Airport Economic Regulatory Authority of
India Act, 2008 & provides for Regulatory Tariff & standards of services.
Port : Tariff Authority for Major Ports (TAMP) fixes tariffs of major Ports. Tariffs of minor ports are determined
by State Govt.s.
Power : Central Electricity Regulatory Commission (CERC) is the Central regulator with wide ranging functions,
from tariff fixation to defining terms of service delivery & dispute adjudication. State ERCs exist in most States
and Union Territories (UTs) of the country.
Telecom: Telecom Regulatory Authority of India (TRAI) oversees the functioning of the telecom and media
sectors and also has a wide mandate.
Regulation by contract:
Road, Railway & Urban Transport : There are currently no regulators in these sectors. The Concession
Agreement provides regulation by contract.
MCA for the Road sector is a standard template on the basis of which other agencies prepare their respective
MCAs.
Standard methodology prescribed for duly approved MCA under appraisal by PPPAC.
MCAs for other sectors, e.g., urban transport, greenfield airports, railway stations and urban water &
sanitation are in the process of finalization.
14
through
India
15
16
Infrastructure Finance
Commercial banks main source of debt, have asset liability mismatch problem.
India Infrastructure Finance Company Limited (IIFCL) was established in 2006 to
provide long term debt for financing infrastructure projects.
IIFCL lends to public sector, PPP, or private sector. Lending up to 20% of project cost.
Borrowings of IIFCL guaranteed by Govt., hence, has access to low cost funds.
A scheme for IIFCL to refinance existing infrastructure loans approved by Govt.
IIFCL is expected to commence takeout financing shortly. Proposal for encouraging
credit enhancement through IIFCL being examined.
IIFC (UK) Ltd established at London. Operated with the objective of using foreign
exchange reserves for meeting capital expenditure outside India.
Dedicated infrastructure fund set up by State Bank of India (SBI), Infrastructure
Development and Finance Corporation (IDFC) & Unit Trust of India Asset
Management Company (UTI AMC) to increase flow of equity investments.
Guidelines of insurance and pension regulatory authorities are being liberalized
to facilitate flow of long term funds for infrastructure.
17
developing
18
19
Projects in Pipeline
Projects Overall
No.
Cost
(US $ Billion)
No.
Cost
(US $ Billion)
No.
Cost
(US $ Billion)
Power
270
93
7
5
15
26.7
19.0
6.0
1.0
8.1
167
46
7
53
33
25.2
7.5
0.9
19.6
14.2
437
139
14
58
48
51.9
26.5
6.9
20.7
22.4
Urban
Infrastructure
244
11.3
133
13.2
377
24.5
125
759
11.6
83.8
154
593
8.9
89.5
279
1,352
20.5
173.3
Roads
Ports
Airports
Railways
Others
Total
Sector
Investment Commitment
India
China
Brazil
Argentina
Energy
45.9
37.3
76.0
29.5
Telecom
52.9
14.5
107.6
29.3
Transport
24.8
47.4
32.1
14.1
Water &
Sewerage
0.3
8.4
4.6
8.2
123.9
107.7
220.3
81.1
Total
Source: ppi.worldbank.org
Power - Tariff :
(i) Selection of prospective bidders for setting up power plants is based
on best offer of per unit of generation tariff.
(ii) For Transmission Lines, the bidding parameter is levelized tariff over
the concession period of the project.
PPP in Roads
National Highway Development Programme for 45,974 km with
39,694 km (86%) through PPP. Estimated investment $ 48.6
billion up to 2012.
PPP in Ports
PPP in Airports
Growth in passenger traffic 18% annually. Carried 117 million passengers
(2007-08). After slowdown, traffic picking up again in current year. 3.4 million
MT cargo expected (2010).
An investment of $ 6.8 billion expected in 2007-12 primarily in PPP mode.
Delhi International Airport being developed through PPP with passenger handling
capacity of 37 million p.a. & will be operational by May, 2010.
Hyderabad Airport already operating, has capacity of 12 million passengers.
Expansion of capacity to 40 million passengers in Phase-II. Phase-I completed &
functional.
PPP in Power
PPP in Railways
Indian Railways with 64,000 km length is one of the worlds biggest
Rail network. Large investments required to modernize & expand
Railway network. Some major PPP Programmes planned or under
implementation are:
Terms : NTBCL can levy toll to recover the total project cost plus 20% p.a. return
on it. Total cost of Project include (i) Project Cost (ii) Major Maintenance Expenses
(iii) Shortfall of Recovery of Return in a specific financial year. Concession period is
30 years to be extended every two years beyond it until such returns recovered by
company.
It has enabled Indian Planners to increase share of Plan for Education & Health from
13.3% (2002-07) to 28% (2007-12).
PPP investments by private sector is increasing in social sectors, too & thus, helping
total investments & service quality.
Viability Gap Funding is typical to most road projects, as Toll revenues from
traffic may not be adequate. An alternative mechanism is in form of providing
land for development to provide financial support. It is difficult, however, to
develop a transparent mechanism for it.
Development of major PPP Projects takes several years in development,
finalizing the Project parameters & acquisition of land. Projects are quite often
not able to assess the correct level of passenger traffic. It is important to
provide for Project expansion or other mid-course correction. A good option,
from point of view of continuity, is to ask the current concessionaire to make
33
such expansion.
35
BACKGROUND
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
Indian Economy
Economic Fundamentals
Impact of Global Financial Crisis on India (Graph)
Break out in the Investment Rate (Graph)
Infrastructure Development Deficit
Estimated Infrastructure Investment Requirement
for XI Plan (Table)
Gross Capital Formation in Infrastructure &
Private Investment thereof (Graph)
Gross Capital Formation in Infrastructure (Graph)
Infrastructure & PPP Projects
Basic Parameters of PPP Projects
36
PPP in Infrastructure
12)
13)
14)
15)
16)
17)
18)
19)
20)
21)
22)
23)
24)
25)
26)
27)
28)
29)
37
(BIAL)
38