PPP VGF IIFCL TA IIPDF O&M MCA NPV GHIAL MAHB GoI GoAP GoR AAI ICAO IRA NHAI SPV CA MCA SPCD LOA COD MOU - Public Private Partnership -Viability Gap Funding -Indian Infrastructure Finance Limited -Transaction Advisers -Indian Infrastructure Project Development Fund -Operation and Maintenance -Model Concession Agreement - Net Present Value - GMR-Hyderabad International Airport Ltd. - Malaysia Airports Holding Berhad - Government of India - Government of Andhra Pradesh - Government of Rajasthan -Airport Authority of India -International Civil Aviation Organization -Independent Regulatory Authority - National Highway Authority of India - Special Purpose Vehicle - Concession Agreement - Model Concession Agreement - Scheduled Project Completion Date - Letter of Acceptance - Commercial Operation Date - Memorandum of Understanding
Chapter 1 ABOUT THE STUDY
1.1 INTRODUCTION: In recent years countries around the world have met the challenge of developing and maintaining critical infrastructure by restructuring public utilities and expanding private sector participation in the infrastructure sectors. Recognizing the importance of adequate infrastructure services, and given the constraints on public budgets to finance these growing infrastructure needs, governments have sought to shift part of the burden of new infrastructure investment to the private sector. Government has been actively engaged finding the appropriate policy framework, which would give the private sector adequate confidence in investing into infrastructure projects and at the same time, have adequate checks and balances through transparency, regulation and competition. Consequently, Public Private Partnerships (PPPs) are being actively encouraged for execution, operation and maintenance of infrastructure projects in India. Over the lifespan of these projects the legislative, political, social, market and economic environment could all change significantly. This is especially the case in developing countries, where the social, political and economic conditions are unstable. Thus a high degree of risk and uncertainty surround PPPs and it is critical that adequate identification, assessment, and evaluation of these risks take place. These risks have a high degree of impact on the feasibility of the project, which is a key parameter in the successful implementation of the project. The concession agreement plays a very important role in PPP. The concession agreement provides a regulatory framework of how the PPP should be implemented. It defines the relation between the parties and can be considered as the core of PPP project. It addresses issues which are very important for the successful completion of project such as mitigation and unbundling of risks and allocation of risks.
Considering the importance of all the above, in this thesis, the various types of PPP models, concession agreements and risk management are studied. 1.2 SCOPE OF THE STUDY: In this thesis it has been attempted to study the • • • • Different types of PPP models Various risks associated with PPP and their impact on the feasibility of the project Concession agreements of PPP in three sectors viz. aviation, highways and urban infrastructure The provisions for risk mitigation in the agreements
An attempt to give some recommendations for risk mitigation and enhancement of productivity of PPPs has also been made. 1.3 METHODOLOGY OF STUDY: • • • • • • • Detailed literature survey Prepared rough draft on types of PPP models, various risks, its assessment and mitigation methods Obtained Case Study materials Detailed study of project and concession agreement of the cases Observations and Recommendations Preparation of pre-final drafts Final Report Writing
Chapter 2 PUBLIC PRIVATE PARTNERSHIPS
2.1 INTRODUCTION: Public Private Partnership (PPP) project, which is based on a contract or concession agreement between a government or statutory entity on one side and a...