- Models for public-private partnerships can take various forms depending on how responsibilities and objectives are shared between public and private sectors. Common models include operations and maintenance, leasing, and building/rehabilitating public assets.
- The government's roles include policy formulation, establishing the legal/regulatory framework, institutional arrangements, and mobilizing resources to attract private investors.
- Private players focus on efficiency through cost optimization and utility maximization, as well as effectiveness through innovation.
- Models for public-private partnerships can take various forms depending on how responsibilities and objectives are shared between public and private sectors. Common models include operations and maintenance, leasing, and building/rehabilitating public assets.
- The government's roles include policy formulation, establishing the legal/regulatory framework, institutional arrangements, and mobilizing resources to attract private investors.
- Private players focus on efficiency through cost optimization and utility maximization, as well as effectiveness through innovation.
- Models for public-private partnerships can take various forms depending on how responsibilities and objectives are shared between public and private sectors. Common models include operations and maintenance, leasing, and building/rehabilitating public assets.
- The government's roles include policy formulation, establishing the legal/regulatory framework, institutional arrangements, and mobilizing resources to attract private investors.
- Private players focus on efficiency through cost optimization and utility maximization, as well as effectiveness through innovation.
• Responsibility sharing pattern (Dominant Private vs public) • Objectives to be achieved ( Economics vs welfare) • Types: • Operation and Maintenance • Leasing • Building and rehabilitation of public asset • Ownership to Private sector Role of the government • Policy Formulation • Objective, type, type and implementation mechanism • Legal /regulatory framework formulation • Legislation for involving private sector, define competent authority, FDI/FII, proposal mechanism, procurement rules, dispute resolution etc. • Institutional arrangement • Defining responsibilities, capacity building as—supervision, facilitation & Promotion • Resource Mobilization to attract private player • Concepts studied in Project financing Role of Private Player • Efficiency • Optimization of cost resources • Optimization of utility of goods • Effectiveness • Innovation • Administrative • Process • Social Risk Allocation • Public vs Private debate • Who is equipped to manage • Supply side • Land & other fundamental resources—to public sector • Construction—Private • Operational risk—Private • Transfer related risks—Public • Demand side • Forecasting—Private/Public/Sharing • Political risk • Regulatory risk—Public • Force Majeure • Political/Natural event—Public • Financial Risks • Availability—Private • Currency—Public • Capital control –Public Questions • Describe the role of the government in NH-30 case. • Elaborate on risk allocation and explain why risk allocation in NH-30 case works or fails to work. • Use the information shared in ‘The Road to Kolkata: NH 34 and PPP in India’ and the excel file shared along with this case to fill the table below and compare the three offers of “Jewel in the Crown”? (To know more about the offers, please refer to the case, class discussions and your assignment submissions). Please present your analysis of preferred option under Case A, Case B and Case C. Case A Case B Case C Sell 50% Sell 74% Sell 100% Case A: 1 year after the sell. Calculation for investor when Base Traffic sensitivity is 80% Case B: 1 year after the sell. Calculation for investor when Base Traffic sensitivity is 85% and Growth rate sensitivity is -0.5%. Also complete the same calculation using Company base Case C: 1 year after the sell. Calculation for investor when Growth rate sensitivity is 3%. Also complete the same calculation using Company base