Abstract
In this chapter, we discuss the sectoral spread of PPPs in economic infrastructure—energy, transportation, and water and sewerage—and social infrastructure—health and education. We also discuss the regional spread of PPPs along with their top sponsors. One recent tendency is the advent of emerging market investors and operators in developing countries, which should make these projects more robust to failure. Finally, we discuss the case study of Mexican Toll Roads, which elaborates on their cancelation and re-privatization.
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Notes
- 1.
World Bank (2008).
- 2.
World Bank (2008).
- 3.
Government of India (Ministry of Finance) (2016).
- 4.
Deloitte. Closing the Infrastructure Gap: The Role of Public-Private Partnerships (http://www.cnrs.fr/aquitaine/IMG/pdf/closing_the_infrastructure_gap.pdf).
- 5.
On the other hand, the objective of improvement of rural roads, where there are minimal PPPs, is to improve connectivity rather than capacity.
- 6.
Pink City Expressway Private Limited (PCEL) is a Special Purpose Vehicle company incorporated by M/s Emirates Trading Agency LLC (ETA) and M/s KMC Constructions Ltd (KMC). ETA is the lead member of the consortium with an equity stake of 51%, whereas KMC has 49% equity stake in the SPV. ETA is a part of ETA-ASCON-STAR group, a multinational organization with headquarters in Dubai. The group network encompasses 140 entities and associate offices in 28 countries. The group’s consolidated revenue for the year ending 2007 was more than US$5 billion. KMC has been among the leading Indian contractors for the past 36 years in the construction of major highway projects, airport runways, major bridges, and other civil engineering works.
- 7.
Due to problems of land acquisition and forest clearance, it has been observed that inventory worth Rs. 60 crore is lying unused in the yard of the concessionaire. There is a need to immediately address the issue so that 19 pending structures can be completed at the earliest and the unused inventory utilized.
- 8.
The bridge was completed in 2010–11.
- 9.
At km 256 + 140 and km 267 + 255, NHAI has to approve estimate for lifting/ shifting of existing 132 KVA high-tension (HT) electricity line. The Vehicular Under Pass (VUP) at km 267 + 255 is complete, but traffic could not be allowed due to inadequate vertical clearance from the existing 132 KVA line. The substructure of the flyover at km 256 + 140 is complete, but work is currently suspended due to the inadequate vertical clearance of the existing 132 KVA HT line. At km 60 + 647, permission to dismantle the Bilaspur old toll plaza building has not been received from NHAI. Similarly at km 105 + 444, a temple and toll collection building was to be relocated but the decision has been pending with NHAI despite repeated reminders.
- 10.
There are choked drains throughout the length of the highway. This problem becomes acute during the rainy season when overflowing drains flood several areas along the highway. The poor drainage is also because truck drivers and dhabawallahs park their vehicles/ block the service lane permanently.
- 11.
Government of India (Ministry of Finance) (2015).
- 12.
Japan’s bullet trains have the best safety record with no fatalities since its inception in 1964 and delays are less than 1 minute.
- 13.
A distance of about 500 km between two major cities spanning a corridor with good economic development was the attribute of the first route in many countries including Japan, France, and Korea.
- 14.
Other nonfinancial negatives that have been pointed out include suicides by jumping onto railway tracks in front of trains and safety issues in the event of earthquakes. Noise pollution, especially the tunnel boom phenomenon, has also been a concern [Source: Raghuram and Prashanth (2016)].
- 15.
The total traffic across all modes in the MA sector was estimated at 62 million for 2010–11.
- 16.
Government of India (Ministry of Finance) (2016).
- 17.
Raghuram and Prashanth (2016).
- 18.
The cost of the Taiwan HSR system is considered high at about $15 billion. By comparison, the MA HSR is expected to cost about $16 billion at current exchange rates.
- 19.
Raghuram and Prashanth (2016).
- 20.
China introduced its first HSR line in 2004 that uses magnetic levitation (maglev) technology—the 30 km Shanghai Transrapid from the Shanghai International Airport to the Longyang Road station of the Shanghai Metro. The Harbin-Wuhan train (covering 2421 km in 14.5 hours), which began service in December 2014, became the then longest HSR service in the world.
- 21.
Financial Express. 15 July 2016. Habibganj to have India’s first “world-class” railway station; here’s what it will look like.
- 22.
Government of India (Ministry of Finance) (2016).
- 23.
Government of India (Ministry of Finance) (2016).
- 24.
Business Standard (2016).
- 25.
Deloitte. Closing the Infrastructure Gap: The Role of Public-Private Partnerships (http://www.cnrs.fr/aquitaine/IMG/pdf/closing_the_infrastructure_gap.pdf).
- 26.
Two water and sewerage contracts in Uruguay reverted to the public sector in 2004 when the electorate approved a constitutional amendment that made access to water a fundamental human right and transferred water and sanitation services to the public sector.
- 27.
Any effort to raise tariffs may cause law and order problems (a form of political risk).
- 28.
Bill Kingdom et al. (2006).
- 29.
NRW is a measure of efficiency in the water sector and is similar to Aggregate Technical & Commercial losses in the power sector.
- 30.
NRW is sometimes also referred to as unaccounted-for water (UFW). While the two terms are similar, they are not identical, since non-revenue water includes authorized unbilled consumption (e.g., for firefighting or, in some countries, for use by religious institutions) while unaccounted-for water excludes it.
- 31.
McKinsey Global Institute (2013).
- 32.
Water from standposts is actually free, but it turns out to be the most expensive as private operators collect water in containers provided by households and deliver it to their doorstep at a transportation charge of Rs. 6 for 25 litres.
- 33.
Report on Indian Urban Infrastructure and Services (2011).
- 34.
PwC. Capital Project and Infrastructure Spending Outlook to 2025 (https://www.pwc.com/gx/en/capital-projects-infrastructure/publications/cpi-outlook/assets/cpi-outlook-to-2025.pdf).
- 35.
In a series of research reports, KPMG has found that students attending classes in new buildings that were procured, built and operated under a PPP structure, achieve a faster rate of improvement in educational attainment than those that attend schools that were conventionally procured (KPMG. 2010. Infrastructure 100).
- 36.
Model School under Public-Private Partnership (PPP) Mode (http://pibmumbai.gov.in/English/PDF/E0000_H114.PDF).
- 37.
Positive externalities in primary education are more than tertiary education. Positive externalities in girl education are more than that of boys.
- 38.
Government of Andhra Pradesh has selected Braun to establish and operate dialysis centers in 11 tertiary-care state-run hospitals on a Build–Operate–Transfer (BOT) basis for 7 years. Government pays the private operator an agreed price for each dialysis (shadow pricing). Dialysis is provided to the Below Poverty Line population through the state-sponsored health insurance scheme. The scheme’s robust payment mechanism ensures timely payment to the private operator and seamless service to the people.
- 39.
The Economist (2014).
- 40.
Government of South Africa (Department of Correctional Services, National Treasury, Department of Public Works). 2002.
- 41.
Standard & Poor’s (2006).
- 42.
Project Finance International (1992).
- 43.
New York Times (1993).
- 44.
Standard & Poor’s (2006).
- 45.
Project Finance International (1997).
- 46.
Standard & Poor’s (2006).
- 47.
Ruster (1997).
- 48.
Private Participation in Infrastructure Projects database of the World Bank (http://ppi.worldbank.org).
- 49.
Pratap (2011).
- 50.
Ehrhardt and Irwin (2004).
- 51.
Project Finance International (2008).
- 52.
Standard & Poor’s (2006).
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Pratap, K.V., Chakrabarti, R. (2017). Sectoral Distribution and Sector-Specific Issues for Infrastructure PPPs. In: Public-Private Partnerships in Infrastructure . India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-3355-1_6
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