Centre clears 10 PPP projects
Guwahati, Oct. 5: Public-private partnership (PPP) mode of projects seem to have accelerated in Assam with the Centre giving the go-ahead to 10 projects in the state.
The empowered committee on public-private partnerships in the state had identified 18 projects which were referred to the department of economic affairs under the Union ministry of finance.
“The department of economic affairs has identified 10 of the 18 projects for which feasibility studies will be carried out,” a senior official in the planning and development department told The Telegraph.
The feasibility studies will be funded by the Indian Infrastructure Project Development Fund, administered by the department of economic affairs, under which they will bear 75 per cent of the project development costs, that is, the cost of engaging consultants to prepare detailed project reports. The rest of the costs would be borne by the state government.
The 18 identified projects are in different spheres, a majority being located in Guwahati.
Some of the projects in Guwahati include setting up a logistics park, development of jail land, Brahmaputra riverfront development project and water meter installation, among others.
A source said once these projects were structured on a public-private partnership model, they would be eligible for 20 per cent assistance under the viability gap funding scheme of the department of economic affairs.
“The Centre has assured the state government of providing viability gap funding to each of these projects as and when they are applied for,” the source said.
Public-private partnerships refer to an agreement between the government and the private sector regarding provisions of public services or infrastructure.
Public-private partnership models can be classified into four broad categories — supply and management contracts, turnkey projects, lease and concessions and private ownership of assets.
A management contract is a contractual arrangement for the management of a part or whole of a public enterprise by the private sector. Under turnkey category, a private contractor is selected through a bidding process and he designs and builds a facility for a fixed fee, rate or total cost, which is one of the key criteria in selecting the winning bid. In lease category, an operator (the leaseholder) is responsible for operating and maintaining the infrastructure facility and services, but is generally not required to make any large investments. In concessions category, the government defines and grants specific rights to an entity to build and operate a facility for a fixed period.