Public Private Partnerships: The Indian & International Experience

19 Pages Posted: 26 Apr 2014

See all articles by Kalpana Gopalan

Kalpana Gopalan

Government of India, Indian Administrative Service; Indian Institute of Management Bangalore; Indian Institute of Science Bangalore; Institute of Social & Economic Change; Swami Vivekananda Youth Movement; National Institute of Urban Affairs; Kuvempu University

Date Written: April 4, 2014

Abstract

The agenda is as follows. We begin with why PPPs are relevant to you, why are you here today at all. PPPs are a complex phenomenon, so our next step is to understand what PPP is all about, is it just a fad, or a useful policy option? This leads us to understand PPPs from two perspectives, first from the point of view of a practitioner; then from the viewpoint of a scholar. We then look at the benefits & advantages of PPPs, as well as its problems. One major aspect in PPP implementation is risk management, so we devote some time to it. Finally, we gather up our learning and try to apply these to design a PPP, and some underlying principles of a successful PPP execution. In the course of my research, I uncovered over a hundred different definitions of a PPP. It is multifaceted, so different scholars and practitioners describe it differently. What I would say is relevant to people like us is to understand PPPs not definitionally but as an entity with a set of distinct characteristics that recur in all or most partnerships. PPPs essentially involve two or more partners, drawn from both the public and the private sectors. They are whole of life cycle arrangments, i.e, they usually involve construction, management and operations, and even maintenance at times. This is very different from the conventional procurement in governments, where a product is either purchased, or a job work is “commissioned” for a fixed fee. Very largely, PPPs are employed in the provisioning and delivery of public goods, things like water, roads, brdiges and so on. The relationship between the private and the public partner is regulated through a contract, which is long-term, running at times for 25 years or more. The reason for this is the whole of life cycle we spoke of, if the contract is to cover both construction and maintenance, then we need to have a long term contract. Over time, loose associations between non-profts and governments have also been termed PPPs, in sectors such as health and education. But the classic PPP is in the business of infrastructure provisions, and uses specific mechanisms like BUNDLING, LIMITED or NON-RECOURSE FINANCING, a SPECIAL PURPOSE VEHICLE and so on.

Keywords: Public Private Partnerships, Infrastructure, Mega-projects, PPPs, India, Partnerships

Suggested Citation

Gopalan, Kalpana, Public Private Partnerships: The Indian & International Experience (April 4, 2014). Available at SSRN: https://ssrn.com/abstract=2428756 or http://dx.doi.org/10.2139/ssrn.2428756

Kalpana Gopalan (Contact Author)

Government of India, Indian Administrative Service ( email )

Bangalore
India

Indian Institute of Management Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

Indian Institute of Science Bangalore

Bangalore
India

Institute of Social & Economic Change

Dr. V.K.R.V. Rao Road
Nagarabhavi
Bangalore, 560072
India

Swami Vivekananda Youth Movement

Mysore
India

National Institute of Urban Affairs ( email )

India Habitat Centre, 1st floor
Core 4B, Lodhi Road
New Delhi, 110003
India

Kuvempu University ( email )

Shimoga Dist.
Jnanashyadri
Shankaraghatta, KS Karnataka 577 451
India

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