Government of India Ministry of Finance Department of Economic Affairs Public Private Partnership Projects in India Compendium of Case Studies c Government of India Ministry of Finance Department of Economic Affairs Public Private Partnership Projects in India Compendium of Case Studies December 2010 Compendium of Case Studies Public Private Partnership projects in India Public Private Partnership projects © Department of Economic Affairs All rights reserved Published by: PPP Cell, Department of Economic Affairs Ministry of Finance, Government of India New Delhi-110 001, India www.pppinindia.com Disclaimer This Compendium of Case Studies has been prepared as a part of a PPP capacity building programme that is being developed by the Department of Economic Affairs, Ministry of Finance, Government of India (DEA) with funding support from the World Bank, AusAID South Asia Region Infrastructure for Growth Initiative and the Public Private Infrastructure Advisory Facility (PPIAF). A consulting consortium, consisting of Economic Consulting Associates Limited (ECA) and CRISIL Risk and Infrastructure Solutions Limited (CRIS), commissioned by the World Bank, has prepared this compendium based on extensive external consultations. ECA and CRIS have taken due care and caution in preparing the contents of this compendium. The accuracy, adequacy or completeness of any information contained in this toolkit is not guaranteed and DEA, World Bank, AusAID, PPIAF, ECA or CRIS are not responsible for any errors or omissions, or for the results obtained from the use of such information. The contents of this compendium should not be construed to be the opinion of the DEA, World Bank, AusAID or PPIAF. DEA is not liable for any direct, indirect, incidental or consequential damages of any kind whatsoever to the subscribers / users / transmitters / distributors of this toolkit. The compendium shall not be reproduced in any form, other than those intended by DEA, without prior written permission from DEA. Contents 1 Overview 1 2. Snapshot Of Case Studies 2 3. Key Learnings 5 4. Case Study 1: Alandur Sewerage Project 15 5. Case Study 2: Karnataka Urban Water Supply Improvement Project 27 6. Case Study 3: Latur Water Supply Project 38 7. Case Study 4: Salt Lake Water Supply And Sewerage Network 50 8. Case Study 5: Timarpur Okhla Integrated Municipal Solid Waste Management Project 58 9. Case Study 6: Vadodara Halol Toll Road 68 10. Case Study 7: Tuni Anakapalli Annuity Road Project 76 11. Case Study 8: Delhi Gurgaon Expressway 82 12. Case Study 9: Nhava Sheva International Container Terminal 90 13. Case Study 10: Kakinada Deep Water Port 98 14. Case Study 11: Gangavaram Port 105 15. Case Study 12: Mumbai Metro 112 16. Case Study 13: Hyderabad Metro 121 17. Case Study 14: Bhiwandi Electricity Distribution Franchisee 130 18. Case Study 15: Amritsar Intercity Bus Terminal Project 139 19. Abbreviations and Acronyms 148 iii Public Private Partnership projects in India Compendium of Case Studies OverviewOne This compendium presents case studies of fifteen select Public-Private-Partnership (PPP) projects in India. The case studies have been prepared to highlight the experience and lessons learnt so far and thereby influence the design of future PPP processes and structures to improve the quality of PPP projects. The choice of case studies provides a representation across different sectors, covers different PPP project structures, includes projects at different stages of the PPP life-cycle and has projects with different levels of complexity. These case studies include the following: a. A description of the project with project features; b. The project structure adopted with details of the roles and responsibilities of the private and public partners; c. The financing details of the project along with the current status d. A description of the PPP process adopted including project identification, project feasibility, structuring of the contract/concession and awarding projects to private partners. This includes details like the timing of major events like tendering and details like the level of response to the bid process; e. A detailed matrix of initial allocation of key risks across the public and private sector partners, along with details of subsequent changes, if any, and an assessment of the implications of the risk allocation; f. A concise assessment of the achievement of objectives originally set out for the project, viz., improvements in service delivery - e.g., capacity, quality, coverage affordability - with indicative parameters, to the extent possible; g. A Value For Money (VFM) assessment of the project to illustrate the benefits of following a PPP approach vis-à-vis the alternative of public procurement; and h. A summary of the key learning and observations from the project. It is expected that the case studies will assist the public authorities in: Understanding the needs, challenges and risks associated with alternate PPP arrangements in specific sector. Improving quality of project identification, preparation, award and monitoring of PPPs and associated issues such as, for example, governance and fiscal implications. Managing the transition to a large scale PPP program to improve infrastructure services. 1 SnapshotTwo of Case Studies Compendium of Case Studies Public Private Partnership projects in India Public Private Partnership projects The following table provides a snapshot of the fifteen case studies. Sector PPP project State and Government / Private sector Project Concession structure year PPP public sector promoter cost period contract entity / entities / sponsor / signed consortium members 1. Alandur Underground Sewerage Project Sewerage Construction Tamil Nadu Alandur IVRCL ` 34.6 crore O&M Contract Contract 2000 Municipality and the Infrastructures and (Sewerage – 5 years (Underground Tamil Nadu Urban Projects Ltd and Network) Sewage System) Infrastructure Va Tech Wabag BOT Annuity – Financial Services Technologies Ltd. ` 6.68 crore 14 years O&M Contract Limited (TNUIFSL) (Underground (Sewage Sewerage System) Treatment Plant) Build-Operate- Transfer (BOT) Annuity (Sewage Treatment Plant) 2. Karnataka Urban Water Supply Improvement Urban Water Operations & Karnataka Karnataka Urban Veolia Water ` 32 crore 42 months Supply Management 2005 Infrastructure (formerly known as (Later Contract Development Compagnie Generale extended to 59 and Finance des Eaux, France) months) Corporation (KUIDFC) 3. Latur Water Supply Project Water Supply Operations & Maharashtra Maharashtra Subhash Projects & ` 182 crore 10 years Management 2006 Jeevan Pradhikaran Marketing Limited, (including Contract UPL Environmental payment Engineers Limited to MJP for and Hydro Comp right to use Enterprises India assets) Private Limited. 4. Salt Lake Water Supply and Sewage Disposal System Water & BOT West Bengal Kolkata Jamshedpur Utilities `70.09 crore 30 years Sewage (includes Design 2007 Metropolitan and Services and Finance) Development Company Limited Authority and and Voltas Limited Naba Diganta Industrial Township Authority 5. Timarpur Okhla Integrated Municipal Solid Waste Management Project Urban BOOT (includes Delhi New Delhi Jindal Urban ` 200 crore 25 years Infrastructure Design and Finance) 2008 Municipal Infrastructure - Municipal Corporation Limited Solid Waste (NDMC) and Municipal Corporation of Delhi (MCD) 2 Sector PPP project State and Government / Private sector Project Concession structure year PPP public sector promoter cost period contract entity / entities / sponsor / signed consortium members 6. Vadodara Halol Toll Road Roads BOOT) (includes Gujarat Government of Government of ` 161 crore 30 years Design and Finance) 1998 Gujarat Gujarat and IL&FS 7. Tuni Anakapalli Annuity Road Project Roads BOT Annuity Andhra National Highways GMR Group, United ` 315 crore (includes Design Pradesh Authority of India Engineers Malaysia and Finance) 2001 (UEM) Berhad Group 8. Delhi Gurgaon Expressway Roads – BOT Delhi and National Highways DS Constructions ` 1,175 20 years Expressways (includes Design Haryana Authority of India and Jaiprakash crore and Finance) 2002 Industries 9. Nhava Sheva International Container Terminal Ports (Major) BOT (includes Maharashtra Jawaharlal Nehru P&O Australia ` 733 crore 30 years Design and Finance) 1997 Port Trust Ports Pty Limited, Konsortium Perkapalan Berhad and Trans Impex Private Limited (P&O Ports subsequently taken over by Dubai Ports World Limited (DP World)) 10. Kakinada Deep Water Port Ports (Minor) BOT Andhra Government of Larsen & Toubro Ltd, ` 330 crore 20 years (includes sharing of Pradesh Andhra Pradesh India, Stevedoring (4th Berth (extendable by revenue with Govt) 1999 Services of America, including l 2 periods of 5 USA, Precious offshore years each) Shipping Company, jetty) Thailand, Konsortium Later extended Perkaplan Berhard, to 30 years Malaysia (extendable by 2 periods of 10 years each) 11. Gangavaram Port Ports (Minor) BOOT (includes Andhra Government of Mr. D.V.S. Raju & ` 1,696 30 years Design and Finance) Pradesh Andhra Pradesh associates, Warburg crore (extendable 2004 Pincus and the by additional 2 Andhra Pradesh periods of 10 Infrastructure years each) Investment Company (APIIC) 12. Mumbai Metro Urban BOOT (includes Maharashtra Mumbai Reliance Energy ` 2,356 35 years Infrastructure Design and Finance) 2007 Metropolitan Limited, Veolia crore – Mass Rapid Region Transport (France) Transport Development and MMRDA Authority (MMRDA) 13. Hyderabad Metro Urban BOT Andhra Government of Maytas ` 11,814