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What is PPP?

@ In Broad terms, PPP refers to an

arrangement between the public and
private sectors with clear agreement on
shared objectives for the delivery of
public infrastructure and/or public
services
efinition By Govt. of India
@ ©

 
    

      
  
        
   
 

  

  
    
©reas Of Public Private Partnership

Infrastructure Housing
and ©nd
evelopment Urban evelopment

evelopment Of Facilities Transportation

ëisk ©llocation
Public Shared Private

Land ©cquisition Volume ëisk esign

Connectivity Inflation ëisk Construction
Permissions & Commissioning
©uthorizations Operating Performance
ëegulatory ëisks Project Finance
Political ëisk Technology Obsolescence
Change in Laws
[Financial Support]
 PPP Variants
Public Private partnerships in infrastructure and
service provision can take various forms such as

@ BOT

@ BOOT

@ BOLT

@ BOO

@ BOM
BOT (Build Operate Transfer)
@ The private partner builds a facility to the
specifications agreed to by the public agency,
operates the facility for a specified time period
under a contract or franchise agreement with
the agency, and then transfers the facility to the
agency at the end of the specified period of
time.

@ BOT is a relatively new approach to

infrastructure development, which enables
direct private sector investment in large-scale
infrastructure projects
BOOT( Build Own Operate Transfer)

@ © BOOT is a concession contract . The

government entity selects a private
company to develop, finance, build, own and
operate a power project for a designated
period of time, after which the ownership
of the project is transferred to the
government without compensation.
 Stages Of BOOT Project
BUIL OPEë©TE
@ esign ΠManage and operate
facility
@ Manage project implementation
ΠCarry out maintenance
@ Carry out procurement Πeliver products/service
@ Finance Œ ëeceive payment for
@ Construct product/service

OWN
Œ Hold interest under Të©NSFEë
concession ΠHand over project in
operating condition at
end of concession
BOLT (Build Own Lease Transfer)

@ The company builds a facility, leases out

the operating portion of the contract and
on completion of the contract returns the
facility to the owner.
@ BOLT have failed to take off due to the
poor contracted work prevalent and high
cost of construction.
 BOO ( Build Own Operate )
@ The Build-Own-Operate (BOO) project
operates similarly to a BOOT project, except
that the private sector owns the facility in
perpetuity. The developer may be subject to
regulatory constraints on operations and, in
some cases, pricing. The long term right to
operate the facility provides the developer
with significant financial incentive for the
capital investment in the facility.
BOM ( Build Own Maintain)
@ This type of arrangement involves the
private sector developer building, owning
and maintaining a facility. The Government
leases the facility and operates it using
public sector staff.
 ©dvantages Of PPP
@ Frees limited Public Finances for other
priorities
@ Helps remove key economic bottlenecks
@ Improved service delivery and efficiency
@ Enables access to private sector resources in
technology and managerial skills
@ ©ccess to long-term financing
@ Shifts risk to the private sector
Public Private Partnerships in India
R
 

 

ëoads 271 102,005

Urban 73 15,288
evelopment
Ports 43 66,499

Tourism 29 2,467

Energy 24 17,110

©irports 5 19,111

Education 4 1,601

ëailways 1 93
Examples Of Urban evelopment
Initiatives
elhi Metro ëail
elhi Metro is being built and
operated by the elhi Metro ëail
Corporation Limited (MëC)
Phase I Network

No of lines 3
Total length 65 Kms
No of Stations 59

Phase II Network

No of lines 10
Total Length 124.63 kms
No of Stations 83

Total length 189.63 kms

Total cost for Phase 1 ës.10, 571
crores.
Mumbai Metro ëail
Metro Master Plan was prepared with
the help of MëC (elhi Metro ëail
Corporation), IIT Mumbai and TCS in
the year 2003

Phase I 3 lines

Phase II 2 lines

Phase III 4 lines

Total Length 146.5 km

Total Cost 47,092 Cr

©irports in
India
GMë ëajiv Gandhi
International ©irport
(Hyderabad)
Greenfield Project

‡ Type of PPP BOOT

‡ Concession period 30 years
‡ Project period 2005 - 2008
‡ Project cost
2,478 crores
‡ Investment pattern
Chattrapathi Shivaji
International ©irport
( Mumbai )

Brownfield Project

‡ Type of PPP BOOT

‡ Concession period 30
years
‡ Project period 2004 -
2010
‡ Estd. Project cost 5,800 cr
‡ Investment pattern
PPP for Highways
 Mumbai--Pune Expressway
Mumbai
Greenfield Project

‡ Length of Expressway 95 km
‡ Type of PPP BOT (30 years)
‡ Project Cost 1,630 crores
‡ Land acquisition 1,030 Ha*
‡ Operation & Maintenance
Ideal ëoad Builders (IëB)

* Ha = Hectares
NHP Plan (Future)
The main components of
NHP (National Highway
evelopment Project) include

6 

 
 6
Length - 5,846 km
Connecting elhi, Kolkata,
Chennai and Mumbai

R
 

Length - 7 ,300 km
Kashmir to Kanyakumari -4000
km (with a spur to Cochin) and
Silchar to Porbandar- 3300 km