Public-Private Partnerships in Infrastructure (eBook)

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.

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