What is PPP?
What are typically characteristics of PPP?
What are the advantages of PPP?
What are types of PPP modes?
Modes | Asset ownership | Duration | Capital investment focus & responsibility | Private partner risks | Private partner roles | Features |
Management Contract |
Public |
Short – medium |
Not the focus
|
Low |
Management of all aspects of operation and maintenance. | This involves contracting to the private sector most or all of the operations and maintenance of a public facility or service. Although the ultimate obligation of service provision remains with the public authority, the day-to-day management control is vested with the private sector. Usually the private sector is not required to make capital investments.
e.g., Karnataka Urban Water Supply and Improvement Project, performance based maintenance contracts in highways.
|
Management Contract |
Public |
Medium – long |
Limited Focus Brownfield |
Medium |
Minimum Capex, Management, Maintenance | This is similar to management contracts but include limited investments for rehabilitation or expansion of the facility. |
Lease Contracts - Asset is leased, either by the public entity to the private partner or vice-versa. | ||||||
Lease Contracts |
Public |
Medium |
Not the focus |
High |
Management and maintenance |
e.g. Leasing of retail outlets at railway stations by Indian Railways |
Build Lease Transfer (BLT) or Build-Own-Lease-Transfer (BOLT) | Private | Medium | Greenfield | Low-medium | Capex | Involves building a facility, leasing it to the Govt. and transferring the facility after recovery of investment. |
Build-Transfer-Lease (BTL) |
Public |
Medium |
Greenfield |
High |
Capex and Operations | Involves building an asset, transferring it to the Govt, and leasing it back. Here the private sector delivers the service and collects user charges. |
Concessions - Responsibility for construction (typically brownfield / expansions) and operations with the private partner while ownership is retained by the public sector. | ||||||
Area Concessions |
Public |
Long |
Brownfield/ Expansions |
High |
Design, finance, construct, manage, maintain |
Private sector is responsible for the full delivery of services in a specified area, including operation, maintenance, collection, management, and construction and rehabilitation of the system. |
Build-Operate-Transfer Contracts - Responsibility for construction (typically greenfield) and operations with the private partner while ownership is retained by the public sector.
| ||||||
Design-build-operate (DBO) | Public | Short-medium | Greenfield | Medium-High | Design, construct, manage, maintain | Not very common in India. Typically financing obligation is not retained by the public sector. |
Build-operate-transfer (BOT)/ Design-Build-Finance-Operate-Transfer (DBFOT) | Public | Long | Greenfield | High | Design, finance, construct, manage, maintain | Most common form of BOT concession in India. |
Build-operate-transfer (BOT) Annuity | Public | Long | Greenfield | Low | Design, finance, construct, manage, maintain | This has been adopted for NHAI highway projects in the past. More recently, it is the preferred approach for socially relevant projects where revenue potential is limited. |
Build-own-operate Transfer (BOOT) Contracts - Private partner has the responsibility for construction and operations. Ownership is with the private partner for the duration of the concession. | ||||||
Build-own-operate-transfer (BOOT) or DBOOT | Private | Long | Greenfield | High | Design, construct, own, manage, maintain, transfer | Most common form of BOOT concession in India. |
Build-own-operate (BOO) | Private | Perpetual | Greenfield | High | Design, finance, construct, own, manage, maintain | Under this structure the asset ownership is with the private sector and the service / facility provision responsibility is also with the private sector. |
What are the various Government incentives for PPPs?
The Government has facilitated the PPP sector by offering:
What is the VGF?
What is IIPDF?
What is the India Infrastructure Finance Company (IIFC)?
What are the recommendations of Kelkar Committee?
akshoy kumar sahu 7 years
Sir,please upload about Art. 35A
Dinesh 7 years