Structure of Project Report

1.6 The structure of Project Report is as follows:


 Section One- describes the purpose, scope & structure of this report.
 Section Two- is the general review of Public Private Partnership (PPP), related issues, PPP phenomenon in global highway sector. The extent of PPP in highway sector in India and Punjab has been briefed to give the contextual reference to this report.
 Section Three- deals with the administrative framework requirements in government agencies involved in bringing private sector participation in public infrastructure. A review of NHAI (at all India level) and PIDB2 (at Punjab level) organization structures is made and possible new structures have been proposed.
 Section Four- briefs the objectives of public procurement and various selection procedures for successful PPP procurement. A review of procedures being followed at India level and in Punjab for PPP in road projects has been done. The section ends with the possible improvements in such procedures at the federal level as well as state level.
 Section Five- details various bid evaluation criteria that are adopted for highway concessions. Various technical and financial criteria adopted by NHAI and Punjab at the prequalification & bidding stage are described, and a possible format for bidding for road projects (least-present-value-of-revenues or LPVR) is described briefly for adoption in Punjab PPP initiative.

1.6 The final section provides the summary of main conclusions and recommendations postulated in this report.


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Administrative Framework & Procurement Methods For Public Private Partnership - A Case Study in Indian Highway Sector

Acknowledgements

I wish to acknowledge the help, guidance and advice given by my tutor: Mr Alain Fayard, Inspecteur Général de l’équipement, Ministère de l’équipement, des transports, de l’aménagement du territoire, du tourisme et de la mer, France in completing this project report. However, I do own the full responsibility for the information, views, inferences & opinions expressed in this report and these may in no way be construed to be the views of my tutor or Ecole Nationale des Ponts et Chaussées (ENPC).

Thanks are also due to Ms Malika Seddi of ASFA who helped me to understand the French experience in PPP and provided useful statistics. Similarly, Ms Bienvenida A. Firmalino, Assistant Project Director of Department of Public Works & Highways, Philippines provided all data related to Philippines experience, which is duly acknowledged.

I also wish to thank Dr M P Raju and Mr. Avadesh Singh of Lea Associates South East Asia Private Limited who greatly helped me in this endeavor by providing necessary insights into Indian highway scenario.

Finally, I express my gratitude to all the persons at ISTED (especially M. Armand der Stepanian), Metratech and ENPC who helped me to complete my CESROUTE program, in general, and this report in particular.

Contents

I- INTRODUCTION


 Purpose and Scope of Project Report
 Structure of Project Report

II PUBLIC PRIVATE PARTNERSHIPS


 Reasons for Choosing PPP
 Types of PPP
 Contracts or Concession Agreements used in PPP
 Role of public and private partners in PPP
 Requirements for a successful PPP programme
 Indian Scenario
 Punjab Scenario

III STRUCTURE OF TASK TEAM FOR PPP


 Management approach to Task Team
 Level of Decentralisation in Government
 Requirements of a Task Team
 Different Formats for Task Team
 French Road Administration Model
 Philippines Road Administration Model
 Outsourcing vs. In-house Capacity Building
 PPP Team Structure in NHAI
 PPP Team Structure In Punjab
 Suggestive Enhancing Measures for NHAI
 Suggestive Enhancing Measures in Punjab

IV SELECTION PROCEDURES


 Purpose of Selection Procedures in PPP Procurement
 Types of Selection Procedures
 Special Features Relating to PPP Procurement
 Procedures
 Other Related Issues
 Bidding Rules & Procedures
 Selection Procedures followed at NHAI
 Selection Procedures adopted in Punjab
 Suggested Improvements in NHAI Procedures
 Suggested Improvements in Punjab selection methods

V BID EVALUATION CRITERIA


 Types of Tender Evaluation Methods
 Evaluation Criteria during Prequalification process
 Evaluation Criteria during Final Bidding Stage
 Tender Evaluation Criteria used in NHAI
 Prequalification Stage
 Bidding (Proposal) Stage
 Tender Evaluation Criteria used in Punjab
 Suggested Improvements in NHAI process
 Suggested criteria for Punjab

VI CONCLUSION AND RECOMMENDATIONS

APPENDICES


 Annex A NHDP-Private Sector Projects
 Annex B List of Post NHDP Projects
 Annex C List of BOT Road Corridors in Punjab
 Annex D List of French Toll Road Operators
 Annex E Organigramme of French Road Directorate
 Annex F NHAI Organisation Chart
 Annex G Organisation Chart of Philippines BOT office
 Annex H List of Minimum Machinery for NHAI BOT Projects
 Annex I List of Minimum Personnel for NHAI BOT Projects

List of Figures

 Figure 1: Types of PPP
 Figure 2: Investment in road projects with private participation in developing and transition countries by project type, 1990-2003
 Figure 3: Road projects with private participation in developing and transition countries that reached financial closure, 1990-2003
 Figure 4: Relationship of Numerous Players in a Typical PPP Project
 Figure 5: Role of Public & Private Partner during a life cycle of PPP Project
 Figure 6: Public Private Route Partnership Map
 Figure 7: NHDP Project Map
 Figure 8: French Government Organisation & Concessionaires
 Figure 9: BOT Unit in NHAI
 Figure 10: Organisation structure for BOT program in PIDB
 Figure 11: Proposed Organization Structure for BOT Unit in NHAI
 Figure 12: Proposed Organization Chart for BOT Unit for Road Works in PRBDB
 Figure 13: Government & Private Sector Objectives in PPP procurement
 Figure 14: Overview of Restricted Procedure for PPP procurement
 Figure 15: Overview of Negotiated Procedure for PPP Procurement
 Figure 16: Objectives of Evaluation Criteria

List of Tables

 Table 1: Potential Advantages of Using PPP
 Table 2: Differences between a Concession and Work Contract
 Table 3 Finance Pattern of NHDP in India
 Table 4: Summary of Private funded Projects in NHDP Project
 Table 5: Trade-offs in Vertical Decentralization
 Table 6: Trade-offs in Horizontal Decentralization
 Table 7: Comparison of Various PPP Procurement Methods
 Table 8: Indicative Timetable for Public Private Partnership Procurement
 Table 9: Commonly used Decision Statement, MUST & WANT Criteria
 Table 10: Number of Toll Road Operator’s in Various Countries
 Table 11: Tender Evaluation Criteria Packages for PPP Projects in General
 Table 12: Selection Criteria Weighting in Four European Countries (%)
 Table 13: Weightage used in NHAI to Equate Different Experiences of Bidders

List of Abbreviations used in the Report


 BOO Build Own Operate
 BOT Build Own Transfer
 CGM Chief General Manager
 DBFO Design Build Finance Operate
 DGM Deputy General Manager
 ENPC Ecole Nationale des Ponts et Chaussées, Paris
 GDP Gross Domestic Product
 GM General Manager
 GOI Government of India
 GOP Government of Punjab
 LPVR Least Present Value of Revenues
 NHAI National Highway Authority of India
 NHDP National Highways Development Project
 PIA Punjab Infrastructure (Development & Regulation) Act, 2002
 PIDB Punjab Infrastructure Development Board
 PRBDB Punjab Roads & Bridges Development Board
 PIRA Punjab Infrastructure Regulatory Authority
 PIU Project Implementation Unit
 PPP Public Private Partnership
 PSP Private Sector Participation
 PWD Public Works Department
 SNBATI Syndicat National du Béton armé, des Techniques industrialisées
 UNCITRAL United Nations Commission on International Trade Law
 UNIDO United Nations Industrial Development Organization