Sustained growth of the Indian economy is essential for all-round development of the country. Within this requirement, sustainable infrastructure development is critical for providing the backbone for economic activities as well as for ensuring that resources are conserved and used most efficiently, given the limited and the fast depleting nature of these resources.
Public private partnerships (PPPs) are seen as a key ingredient in this, for bringing in much needed investments as well as efficiencies in utilization and management of resources - whether water, power, or indeed money. Various estimates indicate that if the economy has to grow at 8% per annum, over $500 billion of investment is needed for the infrastructure sectors from 2007 – 2012; around 30% of this requirement is needed to come from private sector.
The Government of India has therefore been following a considered approach to create the enabling environment for catalyzing such private investment and operations in all infrastructure sectors. Supported by the Asian development Bank, a PPP Initiative has been targeted on capacity building and institutionalization of PPPs across the country Under the above initiatives, the Asian Development Bank (ADB) is supporting the Public Private Partnership (PPP) Cell, the Urban Development Department and the Water Supply and Sanitation Department of the Government of Maharashtra in Mainstreaming Public Private Partnerships (PPPs) in select sample cities of the state through a Technical Assistance (TA) Project.
The project aims to identify and develop PPP structures which can be implemented in the water supply and sanitation sector for the cities of Maharashtra. As a part of this TA, various possible PPP structures in the water supply and sanitation sector were studied, and the applicability of these structures assessed in the context of the sample cities. The project aimed to develop term sheets for those PPP structures, which are identified as most suitable and feasible for implementation.
The toolkits so developed are expected to assist the relevant public entities in the state of Maharashtra for developing PPP-based projects in the water supply and sanitation sector. The toolkit is also designed to help the decision makers in deciding whether a particular project might be suitable for the PPP route or not. The toolkit can therefore be the basis for approving a project implementation structure as part of the overall project approval methodology.