Scheme of the Presentation

Transcription

1

2 Scheme of the Presentation Legal framework & Institutional Setup for PPP Bombay Motor Vehicles Tax Act, 1958 (1994 amendment) Road Policy 1996 Gujarat Infrastructure Development Act, 1999 Permissible assistance under GID Act, 1999 Role of GIDB GSRDC Role of GSRDC Planning for PPP PPP Project Development Process Achievements in PPP in SH Evolution of PPP Projects Lessons learnt on PPP

3 Legal Framework & Institutional Setup for PPP 1994: Bombay Motor Vehicles Tax Act, 1958 amended 1995: GIDB established through a Govt. Resolution 1996: Road Policy covering PPP 1999: GIDB backed up by legislation 1999: GSRDC set up 2006 : Guj.. Infra. Dev. Act, 1999 amended 2006: Tolling Policy under preparation

4 Bombay Motor Vehicles Tax Act, 1958 (1994 Amendment) Enabling provision on Tolling Tolling permitted on Bridges and its approaches, section of a new road and bypasses Tolling allowed for construction, reconstruction, improvements and repair of above facilities or if such facility is of special service to the public Tolling allowed for investments more than Rs. 50 Lakhs by the State Govt. and other person Tolling to cover capital outlay, returns and toll collection expenses

5 Road Policy 1996 Support to PPP Projects Land Acquisition by Govt. RoW to be provided to concessionaire free of cost on a case to case basis Subsidizing loss of revenue due to low traffic than projected Exemption from royalty on construction material Allowing construction in segments & levying toll on completed sections

6 Gujarat Infrastructure Development Act, 1999 Provides a framework for PSP in financing, construction, maintenance & operation of infrastructure projects including Roads, Bridges & Bypasses Competitive, Transparent & Fair Bidding for developer selection Unsolicited offers to be put through Challenge Bidding Projects under Schedule III (Projects of Special Nature) may be offered by Direct Negotiations Maximum concession period of 35 years Option for extension of Concession Period

7 Gujarat Infrastructure Development Act, 1999 Provides for levy of user charges for providing goods & services by a project It has provisions on Financial Security for maintenance of project, Termination and Project Transfer All Infrastructure projects in the Schedule I are required to adhere to provisions of the Act. 12 main nature of Concession Agreements have been spelt out

8 Permissible Assistance by the State Govt. under Gujarat Infrastructure Development Act, 1999 Equity participation max. 49% of the Equity Financial Assistance max. 20% of the Project Cost No financial assistance for Unsolicited Offers Senior or subordinate loans Guarantee Conferment of right to develop any land

9 Role of GIDB Policy, Planning, Project Development, Project Proposal Preparation, Project Appraisal, Statutory Roles, Advisory activities Encompasses almost all infrastructure sectors in State list and Railways & Aviation in Central list Planning for overall infrastructure development Planning for integrated development with inter-sectoral linkages Co-ordinate ordinate with sector linked executing agencies and Departments Project Development activities Project Appraisal Proposal development by means of conceptualising project, Feasibility studies, Project structuring, Financial Anaysis etc. Documentation of projects for bidding on PPP Capacity Building in PPP

10 GSRDC Set up as a Govt. Company under Companies Act Administrative linkage with Roads & Buildings Dept. Board Chaired by the Minister R&BD Board has professional directors GSRDC articles mandates for raising finances from the market for project development GSRDC to promote PPP in Road sector

11 Role of GSRDC Project identification, development activities, documentation, procurement with respect to State Highways only Pre-construction activities like utility shifting and land acquisition with Dept. intervention Facilitation in approvals and statutory clearances Monitoring of construction activities Administration of contracts and Concession Agreements

12 Planning ning for PPP 1996: Road Development Plan Upto 2010 by Roads & Buildings Dept :Gujarat 98:Gujarat State Highway Project (World Bank Aided Programme) : 99: Integrated Master Development Plan for Transport Sector in Gujarat by TCS 1999:Vision 2010 by GIDB 2006: Blueprint for Infra. in Gujarat : Updated SoS for World Bank funding 2006: Planning for SHDP in line with NHDP

13 PPP Project Development Process Inter-sectoral & Sectoral Planning Land Acquisition, Utility Shifting, Forest Clearance, Environment Clearance Project Identification Project conceptualization & Development Submission to MoF, GoI & Finance. Dept., GoG for approval of VGF/Subsidy Project Documentation Submission to GIDB Board Project Appraisal, Approval under GID Act Approval Project Bidding VGF/Subsidy Selection of Developer

14 Achievements in PPP Projects on SHs OPERATIONAL PROJECTS ROB near GNFC Bharuch (Two lane) Ichhapore-Hazira Hazira Road (10 km) (Four Lane) Additional two lane major bridges across three rivers on NH-8 ROB Chalthan on NH-8 Rajkot-Ahmedabad (on NH-8) Road Four laning (HUDCO Financed) Vadodara-Halol Halol Road (32 km) (Four lane + service roads) Ahmedabad-Mehsana Road (52 km) (Four lane + service roads) Chhayapuri ROB (four lane) Himmatnagar Bypass (two lane with PSS) Continued.

15 Achievements in PPP Projects on SHs PROJECTS UNDER CONSTRUCTION Kim-Mandvi Road (Two lane with PSS) Bhuj-Nakhtrana Road (Two lane with PSS) Continued.

16 Achievements in PPP Projects on SHs PROJECTS UNDER BIDDING Deesa-Panthawada Panthawada-Gundari Road (Two lane with PSS) UNDER VGF SCHEME OF GOI Rajkot-Jamnagar Jamnagar-Vadinar Road (127 km) (Four Laning) Halol-Godhra Godhra-Shamaji Road (170 km) (Four Laning) Ahmedabad-Viramgam Viramgam-Maliya Road (180 km) (Four Laning)

17 : 1999: Evolution of PPP Projects Projects are of pre-gsrdc GSRDC and GIDB era All projects of the first generation of BOT projects Vadodara-Halol Halol and Ahmedabad-Mehsana Toll Roads awarded on nomination basis second generation of BOT Projects Huge secured returns in today s s market conditions Govt. to provide support for achieving returns State Govt. participated in Equity Traffic Risk pass through Tolling prohibited within 50 km radius of the facility Restriction in developing competing route However, Performance Standards were attempted Rajkot-Ahmedabad (on NH-8A) four laned with HUDCO credit Not a BOT project Only tolling and maintenance activities outsourced, all risks with the State Govt. Maintenance expenditure from State Budget Continued.

18 Evolution of PPP Projects 1999 onwards: Projects put are under the transparent bidding procedures of GID Act, 1999 Projects are of the third generation of BOT Projects Two four laning of road projects failed to secure developers as subsidy was demanded RoB projects successful on standalone Development concentrated on two laning projects First project with upfront subsidy awarded (pre VGF Scheme) Centre announces VGF Scheme for support to PPP in Infrastructure projects Four laning project development revived thanks to VGF Scheme

19 Lessons learnt on PPP On State Highways only bridges and some bypasses may become financially viable on toll alone Four lane divided facility on SH invariably requires capital subsidy sidy Even two lane roads with paved side shoulder may require subsidy All roads cannot be developed on BOT Care in selection of road stretches for developing on PPP Subsidy results in leveraging of State resources Subsidy compared with industrial subsidy Subsidy is difficult to come through Finance Dept. of State Govt. Concession Agreement should be standardised Scope of project should be clearly defined for developing on BOT Two and three wheelers should not be tolled Economic development due to highway development should yield to revenue generation Continued.

20 Lessons learnt on PPP GID Act ensures transparent bidding Tolling / User Charges appreciated only when it provides value for f money to the users Local traffic needs to be carefully defined considering political l and revenue risks associated with it At-grade junctions are in mixed traffic situation and therefore public pressure for construction of bumps, especially in urban areas Increased LoS and enhanced safety at junctions by providing flyovers/ grade separators Throughout service roads results in leakage of traffic and revenue loss Care be taken that Design & Maintenance risks are transferred to the Concessionaire Maintenance timing and cost are difficult to predict and Concessionaire generally reluctant to be responsible Maintenance related Performance Standards are difficult to implement even when IC is present Continued.

21 Lessons learnt on PPP Outsourcing of knowledge activities per se is not an end in itself Capacity building & accountability of the implementing agency be ensured Shortage of well skilled professionals in PPP domain and Highways Reluctant participation & no commitment of the other wings of Govt. in PPP process At least major Pre-construction activities like land acquisition, forest clearance and utility shifting must be completed before signing of Concession Agreement Concession Agreement should provide flexibility in modification of design during construction stage Failures of experiments in PPP are answerable to various Govt. agencies

22 Roads & Buildings Department Gujarat Infrastructure Development Board Gujarat State Road Development Corp. Ltd.

23

24 Institutional Interaction Under Rules of Business GIDB Approval / Recommendation / Return Concession Agreement & Project Proposal R&B Dept Approvals of the Dept./ Govt. Govt. Agency (GSRDC) Project Bidding Budgeting & Administrative Concession Approvals Design (Not a mandatory one) Planning & Budgeting Vesting of land Toll Admin. (for projects under BMV Tax Act) Land Acquisition Traffic Admin. Safety & Protectionm GAD (Planning) Finance Department Revenue Department Legal Department Home Department Planning Budgetary provision & Land Acquisition Financial Approval Competent Authority (LAA) Compensation