Public-Private Partnerships in Infrastructure: Managing the Challenges

ISBN-13: 9789811098529 / Angielski / Miękka / 2019 / 382 str.

Kumar V. Pratap; Rajesh Chakrabarti

Spis treści

Chapter 1: Infrastructure Challenges

• Infrastructure and its characteristics – large externalities; public good characteristics; natural monopoly characteristics
• Recent history of infrastructure provision - preponderance of government provision
• Infrastructure Challenges – large infrastructure deficit, fiscal resource crunch, limited resources are often spent on wrong projects, time and cost over-runs, poor quality of publicly provided infrastructure, poor maintenance increases costs and reduces benefits

 

Chapter 2: Financing Infrastructure

• Sources of infrastructure finance – Government budgetary support; internal and extra-budgetary resources; private investment
• The Indian experience - Review of infrastructure investment in the Eleventh Plan (2007-12) and the Twelfth Plan (2012-17) periods
• Challenges in financing of infrastructure
• Case Study: Delhi Airport Metro Express

 

Chapter 3: Public-Private Partnership (PPP) Concepts

• Public-Private Partnerships – Concept and features 
• Design of PPP Projects: risk allocation; competitive bidding; bid parameters; project finance related issues
• The incentives of stakeholders in PPP projects – political economy issues
• How can PPPs help in infrastructure provision? 
• Case Study: Delhi-Noida Toll Bridge

 

Chapter 4: PPP Models and Issues

• Different PPP models – Build-Operate-Transfer (BOT), BOT (Toll) and BOT (Annuity) projects; Design-Build-Finance-Operate-Transfer (DBFOT) projects
• Typical issues that arise in each PPP model
• Case Study: Dar es Salaam Water and Sewerage Services

 

Chapter 5: PPPs in different sectors

Private Participation in Infrastructure database of the World Bank

PPPs in economic infrastructure (telecom, energy, transportation, and water and sewerage) sectors; PPPs in social infrastructure (health and education) – typical issues by sector

Case Study:  Manila Water Company

 

Chapter 6: Designing and Managing PPP Transactions

• PPP Contracts – Standardization versus Flexibility debate
• Key stages in bidding out PPP projects – Request for Qualification (RfQ) and Request for Proposal (RfP)
• Model Concession Agreements – Performance requirements, payment mechanism, dispute resolution mechanisms, termination provisions
• Case Study: Concession for Nhava Sheva International Container Terminal

 

Chapter 7: Infrastructure Regulation

Importance of autonomous regulation – preventing regulatory capture; Difficulties in establishing a sustainable regulatory regime
• Types of Regulation – regulation by contract; autonomous regulatory institutions
• Regulatory institutions in India – Telecom Regulatory Authority of India (TRAI); Electricity Regulatory Commissions, Central (CERC) and State (SERC); Tariff Authority of Major Ports (TAMP); Airport Economic Regulatory Authority (AERA)
• Issues and Options: Objectives; Autonomy; Functions; Accountability; Regulatory processes; Multi-sectoral regulators

 

Chapter 8: PPPs in India

• Overview of developments and current status of PPPs in India
• Understanding the institutional framework for contracting and financing PPPs
• Some specific issues regarding infrastructure projects – Environmental clearance; Land acquisition
• Case Study: Dabhol Power Project

 

Chapter 9: Renegotiations and Cancellation of Infrastructure Projects

• Should infrastructure contracts be renegotiated?
Incidence of renegotiations - International and Indian experience
• The conflict between ex-ante optimality and ex-post incentives to renegotiate
• Why are infrastructure projects cancelled?
• The Cancellation and Re-privatization of Mexican Toll Roads

 

Chapter 10: Value for Money in PPPs

• Sustainability of PPP projects and Value for Money (VfM) to the Government
• Analysis of VfM from PPPs across sectors in India
• Case Study: Delhi International Airport Limited

 

Index

Bibliography

O autorze

Dr. Kumar V. Pratap is presently the Joint Secretary (Infrastructure Policy and Finance) at the Department of Economic Affairs, Ministry of Finance, Government of India. Earlier, he has worked with the Prime Minister’s Office (New Delhi), the World Bank (Washington DC), Embassy of India (Washington DC), Ministry of Finance (New Delhi), and the Planning Commission (New Delhi). He has lectured at various institutions both in India and abroad and was also a visiting faculty at the Indian School of Business, India. He has published with Oxford University Press, the World Bank, Economic and Political Weekly, and the popular press. He is a recipient of a letter of appreciation from the Indian Prime Minister, and fellowships from the University of Melbourne's Emerging Leaders program, University of Maryland’s John J Sexton and doctoral program. He has a MBA from Indian Institute of Management, Lucknow (1987) and a PhD from the University of Maryland, College Park, USA (2011).

Dr. Rajesh Chakrabarti is Professor and Executive Vice Dean at the Jindal Global Business School, Jindal Global University, Sonipat, India, and co-founder of Sunay Policy Advisory based in Gurugram, India. He has taught finance for over a decade and a half––at the University of Alberta, Canada, Georgia Tech, USA, and the Indian School of Business (ISB). As the founding Executive Director of the Bharti Institute of Public Policy at ISB’s Mohali campus, he helped design and launch one of India’s leading public policy programs. He has also been Executive Vice President, Research and Policy at the Wadhwani Foundation. Rajesh has held visiting positions at various institutions including Indian Institute of Management (IIM) Calcutta, Indian Statistical Institute (ISI) Delhi, India Development Foundation (IDF) Gurgaon, ICN Business School, Nancy, France, and the Federal Reserve Bank of Atlanta. He has authored or edited eight books, in addition to authoring several book chapters and articles on finance, economics, and management in leading international scholarly journals. He has been a columnist with the Financial Express and is frequently quoted in the media. His current research interests are in the areas of management and public policy. Rajesh is an alumnus of Presidency College, Kolkata, and IIM Ahmedabad, and earned his PhD from the University of California, Los Angeles, USA.

Blurb

The book provides readers with a clear understanding of infrastructure challenges, how Public‐Private Partnerships (PPP) can help, and their use in practice. Infrastructure bottlenecks are generally considered the most important constraint to growth in many countries worldwide. Historically, infrastructure projects have been financed and implemented by the state. However, owing to the fiscal resource crunch, time and cost over‐runs, and the general poor quality of publicly provided infrastructure, many emerging market governments, including India, have increasingly adopted PPPs with billions of dollars of investment riding on them. The results have been varied – from spectacular airports like the Delhi International Airport Limited with the associated controversy over land use, to the renegotiation of contracts as in the case of Tata Mundra Ultra Mega Power Project. Illustrating concepts with relevant case studies, the book makes the challenges of PPPs understandable to industry and management practitioners as well as students of management, public policy and economics. It is useful to practitioners wishing to avoid the pitfalls in the tricky terrain of PPPs and policymakers wanting guidance in crafting proper incentives. It also helps students gain a holistic and “applied” understanding of this increasingly important and popular model.

“Public Private Partnerships (PPPs) in India are currently under stress. A comprehensive treatment of the subject by a long-time and erudite practitioner and a management academic, this book should be useful to students trying to learn the basics, while also being valuable to professionals and policy makers. The book suggests that the Government should hold bidders accountable to their submitted bids, thereby preserving sanctity of contract. This will discourage aggressive bidding which has become a serious and endemic problem. The book also suggests the use of better bidding criteria to mitigate traffic risk in transport projects. Policy makers should pay heed to these suggestions as they consider improvements in the PPP policy regime going forward.”

—Arvind Subramanian, Chief Economic Adviser, India