Public Private Partnership (PPP) in Road Infrastructure projects

Risks to overcome and make this the most feasible process

This paper analyses a number of untouched issues related to PPP projects which play an immensely important role in these types of projects. Also it highlights various risks associated with PPP and carries out a detailed risk analysis on the various aspects of such projects and also discusses various means of mitigating these risks.

It includes detailed analysis of the organization structure of the both public and private sectors involved in the project and study the importance and interrelationship between various segments and departments, the division of roles and responsibilities.

The aim of this paper is to carry out a comparative study between various types of PPP projects and infer so as to which one would be the best for the Indian Construction Industry as a whole. A number of case studies as reference have been used so as to carry out the detailed analysis. Also this paper makes a general assessment of the various terms commonly used in these types of projects which are often neglected but indeed play a vital role. This also focuses on the elements that are important for evolving a working and efficient structure and methodology to select appropriate private partners. The overall approach followed in this paper is informative rather than prescriptive.

This paper is based on:
  • Literature review
  • Detailed case study on a life project "6 laning of Pune-Satara NH4 Project"by Reliance-infrastructure.
  • Interviewing key technical officials at PSTRPL.
  • Interviewing key officials at NHAI.
  • Case studies on various PPP projects undertaken in India.
  • The main focus in this paper will be on the contractual intricacies, project bottlenecks, problematic issue during execution.
  • Also various issues which may cause disputes between the EPC contractor, client and subcontractors.

NBM&CW March 2012

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