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PUBLIC PRIVATE

PARTNERSHIP

PUBLIC PRIVATE
PARTNERSHIP
PPP involves a Contract
between aPublic
Sectorauthority and a
Private party.

Objectives of PPP
To provide better Infrastructure &
Services at optimum cost.
Setting up of a transparent,
consistent, efficient administrative
mechanism.
Speedy clearance of the projects.
Risk sharing framework in the
project.

PUBLIC
GOVERNMENT
GOVERNMENT
BODIES
a) CPWD
b)
NHAI
c)

PWD

etc
GOVERNMENT may
be Central
/State/Tertiary (Local)

Private- is a
system rather than
Government is
known as private
sector.
Partnershipmeans contract
between 2 different
parties or Agencies
such as
Government &
Private sector.
Contract is
legally bounded .

Apublicprivate
partnership(PPP) is a
service of joint venture
which is funded and
operated through a
partnership of
government.

SCOPE OF PPP IN INFRASTRUCTURE


PROJECT
Aviation industry /Airports
Road & bridges
Industrial parks and Townships
Water supply, treatment and distribution
Power generation, transmission &
distribution
systems
Solid waste management
Sewerage & sanitation
Tourism sector
Urban transportation systems
Railway & Related Projects

Role of Private sector PPP project


a) Working Experience in defined work of a project such as
Highways, roadways etc.
b) Advance technology Resources & Engineers
c) Highly skilled labour
d) Proper Capital and Time management system
e) Pre-determined scope of work, Pre-determined user charges/tariff
f) Execution of the Project (Operations and Maintenance).

Private party provides a public


service , substantial financial,
technical and operational risk in the
project.
Proper time period for a calculation
of risk
Proper Operation and maintenance
Road ways is classified as a) Express
way
b)
National highway
c)

Role of Government
in PPP sector
a) Proper relocation of
funding
b) Feasibility study of the
project
c) Proper monitoring and
execution
d) Quality control and
management
e) Risk management
f) Environmental
management
g) Time Period of project
h) Financial aspects

MADHYA PRADESH PPP PROJECT


(BOT PROJECT)
S.No
.

PUBLI
C
(Gov.
agenc
y)

PRIVAT LEGAL
E
CONTRA
SECTOR CT

LOCATIO
N

STATE
HIGHW
AY

LENG
TH

MPRDC

WELSPU
N
PROJECT
Ltd.

BOT

BHOPAL - SH-18
DEWAS

142.6
KM

MPRDC

WELSPU
N
PROJECT
Ltd.

BOT
(O &M)

RAISENRAHATGA
RH

SH-86A

101
KM

MPRDC

Tender
in
process

BOT

INDOREICHAPUR

SH-27

203
km

Policy provisions in PPP


project
The policy provides essentially for
two kind of
contracts .
BOT - Built Operate and Transfer
BOOT- Built Own Operate and
Transfer

Benefit of PPP

Inflow Of Private Investment


Utilization of High tech Resources
Increase In Efficiency of work
Sharing of Project Risks
Assured Maintenance and Operation of
a project
Better Viability of Project
Innovative Design & Construction
Practices

Suggestion
Proper revenue and cost estimate of
a Project.
Careful planning of project.
Competitive & transparent bidding.
Properly-drafted agreement
Proper allocation of risks.
Proper Legal & Regulatory
Framework.
Partnership implies risk-sharing and
mutual trust .