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Financing Urban Development Projects

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Financing Urban Development Projects Powered By Docstoc
					                                    by
                 Dr. Harjit S. Anand
     Co-President, The EuroIndia Centre
Telephones: +91-11-2615-3805 / 3806
             Mobile: +91-98181-12427
         Email: harjitanand@gmail.com
A.     Framework
    Development of world class Infrastructure
     through PPP is a critical goal of Indian
     Development Planning presided by the CCI
    NHDP involving a total investment of about
     50 Billion USD upto 2012
    BOT & Design, Build, Finance & Operate
     (DBFC) basis especially in the Golden
     Quadrilateral Project
B.     Key Issues
    Land Acquisition
    Environmental Clearance
    Qualification for Technical Bids & Role of
     Financial Bid
    Shifting of Utilities
    Arbitration
A.     Framework
    Build dedicated Freight Corridors in the
     Western & Eastern high density routes
    CONCOR: The Container Movement has been
     thrown open to competition by Private Sector
     entities for running container trains
    PPP envisaged in new routes, railway stations,
     logistics parks, cargo aggregation and
     warehousing
B.    Key Issues
    Cooperation from the Railways
    Partnership potential from Corporate entities
     set-up by the Railways.
A.     Framework
    India has the fifth largest electricity
     generation capacity in the world
    Trifurcation of State Electricity Boards
    Policy framework: Electricity Act 2003 &
     National Electricity Policy, 2005
    Private sector participation is increasing
     especially in Generation & Distribution
    Incentives: Income Tax holiday for a block of
     10 years in the first fifteen years of operation
B.    Key Issues
    Pricing by the Regulator
    Transmission & Distribution (T & D) Losses
    Coordination with Public Authorities
A.    Framework
    Ministry of Urban Development has issued the
     Guidelines for Sector Reform and for
     successful PPP to all states for improving
     water supply and sanitation services

 The Guidelines include ‘model contracts’ for
a) services,
b) operation and management, &
c) capital projects
     Case of PPP in Urban Waste Management by
      Chennai Corporation
o     Functions:
i.     Sweeping & waste collection
ii.    Storing/disposal of waste
iii.   Construction and maintenance
iv.    Training

o     Service Provider: CES-Ony X, subsidiary of
      CGEA Asia Holdings Ltd.
o   Contract Structure: Public funding, private
    sector delivery    with   7   year   private
    management
o   Selection Criteria (Competition Building /
    Negotiation)
o   Payment Mechanism: Monthly disbursement
    on a per tonne of waste collected with
    minimum 1000 tonnes per day
o   Penalties: Unattended complaints recorded by
    Citizen Group @ 0.5% of monthly invoice
B.    Key Issues
    Coordination with Municipal Corporation
    Desegregation of garbage and livelihoods of
     waste pickers
    Role of Citizens Group & Buying of Penalties
   Tax-free Infrastructure Bonds
   Exemption from Capital Gains Tax Bonds
   Cess on Fuel
   Cess on Mega Events
   Small thin & competitive City Team &
    outsourcing
   Municipal land or building & Private Initiative
   SPV Model
   Land Acquisition & Concessionaire Toll-tax
    Model with option for Facilities
   Viability Gap Finding
   Innovative    Models   for     In situ Slum
    Redevelopments
   Taxes & Duties
   Tax is something a husband has to pay to his
    wife every month. Duty is something which a
    wife fulfills occasionally every month!

   All about Marital Accord between Public
    Authority as the husband and Private
    Company as the wife in a Patrilineal System.
   Willingness of a Public Authority to
    collaborate with a Private Company in a spirit
    of Partnership

   Symphony between Indian Rages and French
    notes

				
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