INDO-FRENCH SEMINAR Public-Private-Partnership Key Issues

by

Dr. Harjit S. AnandCo-President, The EuroIndia Centre

Telephones: +91-11-2615-3805 / 3806

Mobile: +91-98181-12427

Email: [email protected]

A. 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

B. Key Issues Land Acquisition Environmental Clearance Qualification for Technical Bids & Role of

Financial Bid Shifting of Utilities Arbitration

A. 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

B. Key Issues Cooperation from the Railways Partnership potential from Corporate

entities set-up by the Railways.

A. 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

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

A. 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’ fora) services,b) operation and management, &c) capital projects

Case of PPP in Urban Waste Management by Chennai Corporation

o Functions:i. Sweeping & waste collectionii. Storing/disposal of wasteiii.Construction and maintenanceiv.Training

o Service Provider: CES-Ony X, subsidiary of CGEA Asia Holdings Ltd.

o Contract Structure: Public funding, private sector delivery with 7 year private management

o Selection Criteria (Competition Building / Negotiation)

o Payment Mechanism: Monthly disbursement on a per tonne of waste collected with minimum 1000 tonnes per day

o Penalties: Unattended complaints recorded by Citizen Group @ 0.5% of monthly invoice

B. Key Issues Coordination with Municipal Corporation Desegregation of garbage and livelihoods

of waste pickers Role of Citizens Group & Buying of

Penalties

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

SPV Model Land Acquisition & Concessionaire Toll-tax

Model with option for Facilities Viability Gap Finding Innovative Models for In situ Slum

Redevelopments Taxes & Duties

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.

Willingness of a Public Authority to collaborate with a Private Company in a spirit of Partnership

Symphony between Indian Rages and French notes