Professional Documents
Culture Documents
March 2013
Urban Growth
5 times the number by which GDP will have multiplied by 2030
590 million people in cities - ~ twice the population of USA
$ 2.2 trillion capital investment needed
700 - 900 million sqft of commercial residential space needs to be built ~ a Chicago every year
20 times than the past decade of the capacity of roads, metros and subways need to be created
Source : Indias Urban Awakening, McKinsey Global Institute
Estimated investment for urban infrastructure over the next 20 years Rs 39.2 Lakh Crore at 2009-10 prices (HPEC Report)
Momentum subsided
A few projects
grounded
Onset of pessimism
Way
Ahead?
Now
Mid to
Late 90s
Mid
decade
Around
2000
First initiatives
High
international
interest
Poor results
Pune, Hyd, Goa,
Bangalore Bulk
water 100-300
Cr Failed
Sonia Vihar,
Delhi, Sangli
Bulk water
Bangalore
Rehab, O&M
500 Cr
Failed
Many ongoing
initiatives
Waiting for
commercial results
PPP interest in pilots
scale up not
3
demonstrated
Water
Tiruppur Water Supply the first
attempt?
About 20% urban, and 80% industrial
by the time the project was made,
circumstances were unmade
Types of
PPP
Average Tenure
of the Project
BOOT ,
20- 30 years (Some
DBOOT, BOT of the project
tenures linked to the
asset life)
BOOT
3 years
BOOT
20 years
Solid Waste
Lucknow Biomethanation
Was the technology inappropriate, or did the ULB literally expect
grit-to-gas?
Thiruvananthapuram Composting
How much waste does the city generate
Misfortunes one can endure--they come from outside, they are
accidents. But to suffer for one's own faults--ah!--there is the sting of
life. Oscar Wilde
Goethe
6
Urban Transport
One of the earliest LRT system awarded was in Bangalore,
but later cancelled
A few large projects bid/ awarded
With capex
Mumbai, Hyderabad (!), Haryana
Without capex
Delhi Airport Link
Buses:
Indore, a successful model
Interestingly, why is this model not widely replicated?
Ahmedabad BRT
A number of BRT systems (Delhi, Bangalore, Mysore)
studied and structured on PPP, but being executed by the
Authority
7
Land Related
A large number of projects being
attempted on this formula
Project = land available with Authority +
Some public use + commercial development
Access to domestic
institutions
Tax Buoyancy
Civic
Society
Developers
12
Continuity of
services
Profit motives
of private
sector
Hand back of
assets
Availability of
funds for
payments to
private
operator on a
Fear of
privatization
Increase in
tariffs
Service
Delivery
Lack of
baseline data
Tariff risks
Payment
guarantees
Impractical
performance
standards
Political Will
12
Looking ahead,
hopefully
Thank You
14