Bangalore is the sixth most populous city in India and 43rd largest metropolis in the world. It is the one of the fast growing city and poised to become mega city with 88 lakhs population and 1,000 sq.kms in 2015. The city is a leading science centre with its internationally comparable educational and research institutes. It is a centre for India’s space research and aviation technology. Bangalore is emerged as ‘Silicon Valley’ of India with a booming IT industry of over 125 multi-national companies, 1150 software export companies and 1,20,000 IT professionals. The software exports from the city have been estimated to be around US $2.5 billion in 2003.
With the increase of population and stimulated economic growth, there has been an enormous strain on the existing infrastructure and service delivery. The problems related to traffic, roads, water, sanitation, solid waste, electricity and transport in urban areas are quite acute. The government has neither capacity nor required finances to cope with rising demand for public services.
In this context, many governance reforms have been initiated both by state and civil society to improve the quality of governance and service delivery. The major reforms include Public Private Partnership (PPP), privatization of government activities, and partnership with civil society organizations, transparency and accountability in administration and so on. Against this backdrop, the study examines the implications of governance reforms particularly public private partnership on service delivery in terms of efficiency and equity in Bangalore.
Public-Private Partnership for Service Delivery: Conceptual Framework:
There is lack of consensus over definition of PPP. PPP is deferred as ‘working arrangements based on a mutual commitment between a public sector organization with any organization outside of the public sector’. It is a contractual agreement formed between a government agency and a private sector that allows the latter in public service delivery towards financing, designing, implementing.
PPP is innovative, flexible collaborations in which the partners are bound by shared values and mutual trust to share cost, risks, and benefits.
PPP is also understood in terms of inherent power dynamics shared mutually among the partners. Power might be political information, or organizational power. PPP is alternative service delivery model to achieve efficiency and address shortages, although unlikely to replace fully traditional service deliver by governments. The partnership concept is linked to the network forms of governance, in which public actors co-opt other actors to solve the governance problems. PPP therefore, represent a new way of doing business to improve the quality and efficiency of public services.
PPP in partnership with ‘private’ sector include corporate bodies, consulting firms, contractors, maintenance companies, private investors and so on. The public-private also include: service contracts, operation and management contracts, Leasing-Buy-Build-Operate (BBO), Lease-Develop-Operate (LDO), Wrap-Around Addition (WAA), Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT) etc. Most contracts cover the finance, design, management, and maintenance obligations. These contracts are usually financed by user fees or tariffs or by government subsidies. The argument is private participation results in better efficiency. The PPP helps to raise resources (funds, techno-managerial skill and expertise), innovation, cost saving and construction and commercial risk sharing, entrepreneurial spirit and improve services simultaneously. These civic groups play a predominant role in mobilizing services, pressing for micro-policy reforms, engage in mass campaigns, demand for better services, monitor actual provision and for ensuring accountability from service providers. The horizontal engagement of public civil society is...