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Public Private Partnership
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PUBLIC PRIVATE PARTNERSHIP (PPP CELL)

Introduction:

The strategy for infrastructure development in the Eleventh Five Year Plan recognizes that resources require to meet infrastructure development exceeds the capacity of the public sector. It is necessary to attract private investment through appropriate forms of PPP to meet overall investment requirements. The delivery of infrastructure services both at national and sub-national levels through PPP have emerged as an important option for Government departments and entities. Apart from their ability leverage and channelize large volume of private capital into these sectors, PPPs bring added advantages of efficiency in service delivery, technological innovation and value engineering that are result of optimal risk allocation.

PPP in Assam:

Considering the large backlog suffered by Assam in the economic development, it has to catch up with rest of the country by accelerating economic growth. Situated in one corner of the country that state has to improve physical infrastructure to trigger rapid industrialization for which a comprehensive view of infrastructure development is required. Govt. of Assam proposes to bring in private sector investment with PPP mode as one of the preferred routes for infrastructure development of the state. PPP approach is best suited for the infrastructure sector as it supplements scarce public resources, creates a more competitive environment and brings in the efficiencies of private sector management.

PPP policy of Assam:

The Govt. of Assam lays down Public Private Partnership policy vide Gazette Notification in 2008 to achieve the goal outlined in the Five Year Plan highlighting various aspects of the PPP frameworks. It recognizes the requirement for an effective and efficient institutional mechanism to ensure timely clearance of projects and timely lays down following high powered committees assisted with PPP Cell set up under Planning and Development Department.

Apex Authority:

It is constituted as the Chief Minister is the Chairman of the Authority and supported with Minister Finance, Urban Development Department, Revenue, Industries and Guwahati Development Department, the Chief Secretary as member and Principal Secretary, Planning and Development Department is the Member Convener. The Minister of the line department is which the project belongs will be co-opted as Member of the Apex Authority. The Apex Authority will grant in-principle-approval of all PPP projects having investment or, where value of underlying assets exceeds Rs. 100 crores will require investment approval and approval for developer from the Apex Authority.

Empowered Committee:

The Empowered Committee is headed by the Chief Secretary and supported with Departmental Chief Executive of Finance, Revenue, Forest, Legislature and line department to the project belongs as Member. The Principal Secretary of Planning and Development Department is the Member Convener. The following are the primary function of the Empowered Committee:-

  • Grant approval to proposals to include in the shelf of PPP projects.

  • Sanction of Projects Development Fund (PDF) assistance.

  • Recommend the proposals to Apex Authority for in-principle-approval.

  • Grant approval for the bidding criteria and bid process.

  • Approval of investor for projects up to worth of Rs.100 crores.

PPP Cell:

The PPP Cell in Planning and Development Department shall assist Empowered Committee on PPP matters like:

  • To identify, conceptualize and create a shelf of projects in consultation with line departments and seek approval of such projects from Empowered Committee / Apex Authority on PPP.

  • To assist different Govt. Departments in preparing pre-feasibility reports by itself or, through consultants.

  • Evaluate PPP projects from financial and legal angles.

  • Provide technical support in terms of Finance, Law to the Empowered Committee / Apex Authority on PPP.

  • To assist the respective departments in preparing detailed projects reports.

  • To help departments to conduct the bidding process for selection of developers.

  • To interact with Department of Economic Affairs. Ministry of Finance, Government of India for obtaining approval under the scheme of Viability Gap Finding (VGF).

  • To act as the nodal agency for capacity building for PPP in the state.

PPP Handbook on Guidelines:
A Handbook on Guidelines on PPP is prepared in support of PPP policy to elaborates the details of steps and procedure for selection of consultants for project development activities and to procedure to select private operatives.

Project Development Fund:
PDF through state budgetary support under Planning and Development Department for project development activities has been created procedure for sanction and utilization of PDF has been developed.

Capacity Building:
Planning and Development Department has initiated multi-cornered activities to support capacity building initiatives for development of PPPs in Assam. These means include:

(a) Sensitization through Seminar etc.:

PPP Cell has conducted sensitization programme through several Seminar cum representation during 2010. In addition, a Regional Workshop on various aspects of PPP with industry Partners is proposed to conducted in June, 2011. The workshop will help to understand opportunities and challenges and to generate conducive environment for PPP projects in the state. This will help highlight the relevance of partnership in inclusive development of state infrastructure.

(b) Training on sensitization of PPP and project identification:

  • P&D Department with Department of Economic Affairs, Govt. of India had organized a 5 days orientation programme for officers in line departments to sensitize on various Govt. of India schemes to avail the financial / technical support in undertaking the projects development activities. During this programme, 18 new projects were identified and proposed to seek support from GOI schemes.

  • A short term 2 days sensitization training programme for the State Govt. Officers on PPP held on 10th and 11th January, 2011 in Guwahati is conducted by the National Capacity Building Trust, New Delhi.
     

Comprehensive Capacity Building programme on PPP:
Memorandum of Understanding (MOU) with National Capacity Building Trust (I-CAP) was signed to receive training on PPP for capacity building of the officers of the state. The training need assessment was already completed and curriculum for training of various layers of State Govt. functionaries has been finalized. The training of trainers to complete by March, 2011 and actual training of the State Govt. functionaries on regular basis will be started from April, 2011.

PPP Projects in Assam:
As of December, 2010, Govt. of Assam has initiated 60 projects under PPP mode through various departments which are under various stages of implementation, i.e. bid closure under bidding, under pipeline and conceptualization. Out of this, 18 projects was approved in principle by Govt. of India to take up project development activities under Pilot Project Initiative (PPI) Scheme under 7 line departments like GDD, Power, Tourism, Labour Welfare, Urban Development, IT and Health

Management System on PPP:
Web Portal on PPP Cell viz http://www.assamppp.gov.in is developed and hosted to improve monitoring of overall progress pertaining to PPP activities of the state and to share the information among the stakeholders and public at large. In this respect a comprehensive database with different project component i.e. (a) Basic Project Data, (b) Contact Information, (c) Bidding information, (d) Financial Details, (e) Legal Information etc. is developed with the support of NIC, Assam. The database to enable line departments to maintain the project details using this web base portal. In addition to State Govt. effort, Govt. has been assisting in its efforts to improve the PPP enabling environment in a programmatic manner. Underpinned by a number of technical assistance programme, which have been developed in order to address evolving needs of the PPP enabling environment which are as follows:

  • Pilot Project Initiative: A project development fund ( 100% grant) of DEA for engaging consultants through a pre-qualified panel of firms / consortium able provide a one stop service to advice on all aspects of PPP structuring from concept development, technical review of costs, financial modeling, PPP option analysis and finally to bid award to a private sector.

  • IIPDF: A project development fund (75% grant) of DEA for engaging consultants to undertake project development activities. Remaining 25% to be contributed by the state fund. State PDF may be availed for this purpose.

  • Legal Advice: A pre-qualified panel of firms with PPP in India and overseas to provide short term review / legal evaluation of project document / PPP projects at an advance stage of development. 100% grant funded by GOI.

  • Viability Gap Funding: Financial assistance to be provided under VGF shall be in the form of a capital grant at the stage of project construction. The amount of VGF shall be equivalent to lowest bid for capital subsidy subject to a maximum of 20% of total project cost. In case the supporting Ministry / State Govt. / Statutory entity proposes to provide any assistance over and above the said VGF, it shall be restricted to a further 20% of the total project cost


 

 
 
 

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