Mainstreaming

PPPs at the State level

Review & Plans for Government of

Andhra Pradesh
June 5, 2008
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Description of PPP Strategy for State

State Legislation Re PPP

A P Infrastructure Development Enabling Act, 2001

Other Policy Statements Concerning PPP

Focus Areas of State &/ PPP Cell
Sector Focus
Infrastructure and Social Sector

Geographic's Focus
Entire State

Specific Project Type Focus (eg. Industrial Parks,

Bus Terminals)
Roads & Bridges, Bus Terminals, eseva centers, Hotels &
Resorts
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PPP Cell
PPP Nodal Officer: I Y R Krishna Rao, IAS, Principal Finance
Secretary and Nodal Officer reports to Chief Secretary, Assumed
charge as Nodal Officer since April 2008
PPP Specialist: D Shalem Raju, reports to Deputy Nodal Officer
since 17 March 2008, previously worked as Associate Vice
President in Infrastructure Advisory division of SREI
MIS Specialist: Suneel Chhabra, reports to Deputy Nodal Officer
since 21 January 2008, previously worked as Dy Director for
IT&C Department, Govt of Rajasthan
Other Officers and staff in PPP Cell: Mr Dinesh Kumar IAS, Prl
Finance Secretary and Dy Nodal Officer, Mr Naresh Penumaka,
IRS, Addl Secretary, Mr J Prasad, Dy, Financial Advisor and Asst
Nodal Officer
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Assignment & Logistics

Tasks assigned till date to the PPP/MIS Experts
Awareness building & Training for relevant State
Government Officials
Technical Assistance to projects referred to PPP cell for
VGF funding and guidance
Creation of Shelf of Bankable Projects
Workout the framework for development of integrated web
based solution covering web portal, work flow and MIS

Assignments envisaged during 2008-09

All the above activities

Comment on Logistics and support services

Office space, computers, AC is provided
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Review of PPP Projects to Date

Overall PPP Projects
Number Proposed and facilitated by PPP Cell
90 PPP projects are in process in AP State

VGF Applicants
MRTS and Bridge on River Godavari

PPP Modality Overview by Sector (BOT, etc)

Roads: BOT (10 Projects) and Annuity (17 projects)

Airports: BOT
Ports: BOT
Rail: BOT
Tourism: BOT
Forest: DBFO (Design, Build, Finance and Operate)
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Review of PPP Projects to Date Contd..

Overall PPP Projects
Sector and Project type overview and Status of Projects
(implemented, operations commencement)
Sector
Roads
Airports
Ports
Rail
Tourism
IT
Others
Total

No of
Projects
27
3
4
1
40
6
12
93

Initial
Stage
13
2
1

Bid
Process
9

1
1
8

2
21

6
25

Implement
ation
5
1
2
29
6
4
47
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Review of PPP Projects to Date

Challenges and Main Issues to Date
Sponsor Level

Financing for project development

Transaction Support
Land Acquisition
Shifting of utilities and right of way
Co-ordination with other Govt,. Agencies

Financing Level
Issues associated with VGF and PDF Funding
Tenure of loan not matching with concession period

Review of PPP Projects to Date Contd..

Employee and Consumer Issues
Issues related to user fee
Service expectation and delivery
Reluctance of employees in public sector

Transaction Advisory Issues

Need to increase the choice and quality of Transaction
Advisory support
Service delivery by Transaction Advisors

Other
Deepening of Institutional capacity in PPP Technical Issues
for policy development and project support
MCA in other fields where it has not come out and guidance
material from govt of India and also Training support
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Status of implementation of MoU with DEA

MoU signed with DEA on April 7 2008
Obligation

Fulfilled

1 PPP Cell Established on 04.12.2007

2 Joining of PPP Expert and MIS Expert

3 Framing of State Infrastructure Policy

4 Setting up of Project Development Company

In the
Process

5 Development of integrated web based MIS

6 Capacity and Awareness building

Technical Assistance to PPP Projects
7 Creation of shelf of Bankable Projects

8 State PPP Policy

Forward Programme for PPP Mainstreaming

Focus Areas
Development of State PPP policy
Capacity and Awareness Building
Development of MIS , portal development, work flow
automation and real time monitoring and review of PPP
Projects
Preparation of Hand book on PPP giving holistic information
about guidelines and aspects related to execution of PPP
Projects
Expansion of PPP cell to have capacity building, project
appraisal and MIS wing. Also Research Wing to collect
material on national and international best practices for
preparation of compendium
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Forward Programme for PPP Mainstreaming Contd

Projects on Anvil

MRTS
Greenfield Airports and Sea Ports
Hotel & Resorts
Roads and Bridges
Growth corridor from Kakinada to Vizag Road
Project
Outer Ring Road
Fab City
New IT Parks in Vizag, Vijayawada, Warangal and
Tirupati
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Forward Programme for PPP Mainstreaming Contd

Changing Stakeholder Demands

Expeditious project delivery
Improved service delivery of roads, ports and urban
infrastructure
Qualitative service at minimum user charges
Reluctance for parting with the land required for the project
Early departmental clearances from the government
Land Acquisition to be done totally by the public sector
R&R to be done by the public sector
External Infrastructure linkages to be developed like roads,
power, water etc.
Demand for the govt participation by way of equity
Change in scope of work and concessions after award of the
project

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Issues and Challenges

Right Institutional framework, transparent policies and
guidelines in licensing, financing and risk sharing
Capacity and Awareness building in State govt
departments to handle PPP Projects successfully
Scarcity in experience in project delivery and long term
service delivery
Limited availability of risk capital and long term debt
finance
Land Acquisition, R&R issues and Project Right of Way
External Infrastructure like water, road, power etc
Problem in collection of user fee by developer
Adequate project related data
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Issues and Challenges Contd..

Lack of standard documentation like MCA, State Support
Agreement etc..
Risks associated with the long term projects
Potential sectors for project replicability should be
identified so as to establish efficient project delivery
capacity on sectoral basis
Dissemination of information and best practices from
other states to avoid wasting of time in reinventing the
wheel
Qualification criteria in the road sector
Developing bankable project documents acceptable to
Government, bidders and lenders
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Dinesh Kumar, IAS

Principal Finance Secretary to Govt of AP &
Deputy Nodal Officer
PPP Cell
Finance Department
Govt of Andhra Pradesh
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