Region: South Asia
Keywords: Knowledge Lab, Transport, Urban transport
The report identifies key barriers to the success of PPP in urban transport infrastructure space particularly in bus terminals development and operation, Public Bicycle Sharing (PBS), city bus private operations, street infrastructure and Intelligent Transport System (ITS) in India.
Urban transport is a critical component of urban infrastructure and the lifeline of a city. A well- developed and planned transportation system is integral to the development of social activity and accelerates economic growth. With the burgeoning rate of population and expanding urbanization, requirement of urban transport infrastructure and associated funding needs are growing at rapid pace, resulting in an ever increasing gap between supply and demand.
Traditionally, financing of urban transport projects in the country has largely been confined to gross budgetary support from the government and revenue from user charges. Due to relative lack of appreciation of heavy investment needs of urban transport and conflicting demands on the general exchequer, investment in urban transport in past has not kept pace with the rapidly increasing requirement of the sector. Considering the importance of this sector, the Government of India (GoI) in its 12th Five Year Plan (FYP) has estimated INR 202,628 crores investment in public transport and other associated infrastructure and INR 167,218 crores investment specifically in street infrastructure. The investment in urban infrastructure as estimated by the High Power Expert Committee set up by the Ministry of Urban Development, Government of India for the period 2012 – 2031 (12th FYP to 15th FYP) also indicates a huge requirement of INR 39,20,000 crore.
It is understood that the public sector would continue to play an important role in building urban transport infrastructure. However, the resources needed are much more than the public sector can provide and public investment will therefore have to be supplemented by private sector investments.
In order to address this gap, the GoI is focusing on leveraging investments from private sector through Public Private Partnership (PPP) and has emphasised this in the Smart Cities Mission, Atal Mission for Transformation and Urban Rejuvenation (AMRUT) as well as the National Urban Transport Policy (NUTP). Traditionally, PPP analysis has been carried out primarily from a financial point of view, but policy and planning barriers often hamper the successful implementation of PPP projects in urban transport infrastructure. This report analyses PPP in urban transport infrastructure in an integrated manner and the identified barriers and proposed recommendations cover all aspects holistically.
With the above background, the report identifies key barriers to the success of PPP in urban transport infrastructure space particularly in bus terminals development and operation, Public Bicycle Sharing (PBS), city bus private operations, street infrastructure and Intelligent Transport System (ITS). The barriers have been analysed from institutional, planning, and contractual and implementation perspectives, and recommendations are provided to address the identified barriers. Subsequently, various types of PPP models have been developed for each sector, as an attempt to enable successful PPP contracting and implementation in urban transport infrastructure projects.
Updated: April 12, 2022