PPP for Infrastructure Projects

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Public – Private Partnership For Infrastructure Projects Sreenivasan Sreenath

Transcript of PPP for Infrastructure Projects

Page 1: PPP for Infrastructure Projects

Public – Private Partnership For Infrastructure Projects

Sreenivasan Sreenath

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PPP

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The term PPP refers to a long term, contractually regulated cooperation between the public and private sector for the efficient fulfilment of public tasks in combining the necessary resources of the partners and distributing existing project risks appropriately according to the risk management competence of the project partners.

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Gap between need and Private Investment in infrastructure

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Roles

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Why PPP’s

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Value for Money

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PPP Process

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Private investment commitments in infrastructure in low and middle income countries, by region.

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Source: World Bank and PPIAF: PPI Database

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Private Participation in Infrastructure in the Top 6 Countries (2012 – 2013)

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Source: World Bank and PPIAF: PPI Database

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PPP Contractual Framework

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PPP Cash Flows

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PPP Models

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Basic financing diagram

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PPP Issues

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PPPs: Lessons learned

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Successful PPP programme can be summed up as:

Political will.An adequate legal framework.Facilities with significant initial capex and long-term maintenance requirements, to ensure a ‘whole-life’ approach is taken.Projects of a suitable size, to ensure that procurement costs are not disproportionate.

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