Examples of Public Private Partnership (PPP) Projects

Some examples of Public Private Partnership projects in transport sector in India

Some of the well known Public Private Partnership projects in India are mentioned below.

SECOND VIVEKANANDA BRIDGE (now Sister Nivedita Bridge) in Kolkota:
This bridge is one the first BOT projects, undertaken in 1995. The concession agreement was signed in September;2002. The consortium members are from USA, UK, Mauritius and India. Though the financial close was delayed by one year, the construction thereafter was almost on time and the bridge was commissioned on July4, 2007. This bridge also won award for excellence for the year 2007 under the Foreign Bridge Project Category from the American Segmental Bridge Institute. Total project cost of INR 640 (USD 128 millions). The concession period of the project is 30 years.

public-private-partnership

MUMBAI METRO:
First MRTS project in India being implemented on Public Private Partnership (PPP) format. DMRC (Delhi Metro Rail Corporation) prepared the master plan for Mumbai Metro. The Private party involved was- Reliance Energy Ltd.
Total Project cost- Rs. 2356 Crores
First phase- 2006-1011
Commencement of Operations- 2009-2012
mass transit corridor from Andheri to Ghatkopar

DND – LINK ROAD:
The 4 lane 1.5 km long road will intersect the Delhi Noida link road at the intersection of the proposed Mayur Vihar District Centre. This link has been proposed to provide better access and the shortest connectivity from the existing DND flyway to the Trans Yamuna East Delhi area. The work involved detailed geometric design and structure design of the flyover over DND Flyway and another bridge. Estimated civil work cost of the project is Rs. 30 crores. The concession period of the project is 30 years.

UNDERGROUND CAR PARKING SYSTEM CITY- Kolkata, West Bengal
Year of execution- April 2007. Parking in central Kolkata, the heart of this mega city, has always been a hassle is the case with most of the inner city areas. In an attempt to address the situation, the Kolkata Municipal Corporation (KMC) decided to utilize the rights to underground space and undertake the parking project as a Public Private Partnership project on a Build-Own-Operate-Transfer (BOOT) basis for 20 years. The Private parties involved were- KMC and Simplex
UG Level 1: Commercial Development
UG Level 2: Parking lot

SOME EXAMPLES OF PUBLIC PRIVATE PARTNERSHIP PROJECTS IN TRANSPORT SECTOR OUTSIDE INDIA

UNITED STATES, DULLES GREENWAYS:
In Virgina, the govt.’s private sector participation policy led to a proposal of developing a 22 km toll road that connects Dulles International Airport to Loudon County. Project cost was $350 million, of which $332 million was mobilized through the issue of bonds to institutional investors. When the operations started in the mid-1990’s, the project company experienced lower than expected traffic level. While the original estimate of average traffic was 35,000 vehicles per day, the traffic level realized was only 8500 vehicles with an average toll of $1.77. The project company then reduced the toll to $1, which led to an immediate jump in traffic to 23,000 vehicles. However, since this was still lower than original projections, the project started to default and the terms of the bonds had to be renegotiated. One reasons for this problem was underestimation of the adverse impact of the alternative Route 7, which runs parallel to the project road. However, business prospects improved for the toll route in the late 1990’s as Route 7 got congested and traffic reached the originally anticipated level.

UNITED STATES, ORANGE COUNTY’S STATE ROUTE 91 EXPRESS LANES:
In the early 1990’s, cash- strapped Orange County in Caledonia decided to develop 16km express lanes between two carriageways of Riverside Freeways, from Anaheim to Riverside. Toll for use of the express lanes for a round trip was $8. Service started in the mid-1990’s. The express lanes soon reached close to their capacity, but users of the existing freeway continued to experience enormous congestion. The project was financially successful but a failure in resolving congestion problems.

DEVELOPING LOCAL CAPITAL MARKETS- CHILE:
By the early 1990’s, a sizable infrastructure gap had emerged in Chile, and significant investment was needed to prevent transportation and other bottlenecks from becoming a major obstacle to future growth. A challenge for the govt. was to close this gap while maintaining fiscal discipline that had placed public debt on a rapidly declining path. The solution lay in promoting private sector involvement in the provision of public infrastructure through public private partnerships (PPP’s). Chile thus embarked on an ambitious concessions program in 1994, centered around a number of projects to develop the network.