Measures for effective implementation PPP projects

For effective implementation of PPP projects, some of the important measures taken by the Government include streamlining and simplifying the appraisal and approval process of PPP projects, provision of funding support under the Viability Gap Funding (VGF) scheme and formulation of standard/model documents for bidding and award of PPP concessions. These model documents are modified from time to time, when required, after due consultations with stakeholders. This information was given by the Minister of State (Independent Charge) for Planning, Shri Rao Inderjit Singh in a written reply in Lok Sabha today.

The Minister said that the Government has issued Guidelines for Monitoring of Public Private Partnership (PPP) projects to be followed by all Ministries, Departments, statutory authorities and Public Sector Undertakings. These Guidelines also apply to State Governments for state projects that receive Viability Gap Funding (VGF) from the Central Government. The Guidelines have created an institutional framework to ensure compliance of the concession agreements for PPP Projects mainly with a view to safeguarding the interests of the public exchequer and the consumers / users. The Guidelines inter alia require the Project Authorities to create a two-tier mechanism for monitoring the performance of PPP Projects which should consist of:

(i) PPP Projects Monitoring Unit (PPP PMU) at the project authority level; and

(ii) PPP Performance Review Unit (PPP PRU) at the Ministry or State Government level, as the case may be.

The Minister said that the key benefits of PPP projects in infrastructure are as follows:

• Encourage private investment in the infrastructure sector

• Reducing public direct spending

• Public budget could be used in other priority areas

• Introduce innovation and increased efficiency from the private sector

• Development of local capital market

• Right sizing of public institutions

• Better services to users and early delivery

******

NCJ/NN