Anouj Mehta Senior Infrastructure Finance Specialist (Public Private Partnerships) ADB’s Assistance for PPP’s in India On-Going & Proposed Initiatives 26 -27 February 2009, Bhopal,
BACKGROUND: Growth Fuelled Infrastructure Pressures Years of Investment Lags Rapid economic growth Population, Income & Consumption Levels Growth POWER Rapid Urbanisation Severe Capacity WATER Pressures TRANSPORT On All SOCIAL SECTORS Sectors
BACKGROUND: Huge Investment Needs Estimated at US$ 500 billion over next 5 years Sectors US $ billion ELECTRICITY 150. 37 ROADS 81. 24 TELECOMS 65. 12 RAILWAYS 62. 20 PORTS 18. 03 AIRPORTS 8. 46 WATER SUPPLY & SANITATION 48. 57 IRRIGATION 52. 98 OTHER – Storage / Gas 10. 46 TOTAL 497. 55 Sectoral Shares (%) Sector-wise Public (%) Sector-wise Private (%) 30. 2 73. 6 • 70, 000 MW Capacity / Coverage 26. 4 expansion 16. 3 66. 2 33. 8 3. 6 26. 3 73. 7 • 6, 500 km Golden Quadrilateral / North-South 13. 1 73. 6 26. 4 and East-West corridors / 11, 113 km Nat. Highways / 1, 000 km 83 Expressways 17 / 7, 616 km 12. 5 National Highways in North East • Dedicated freight corridors 1. 7 25. 8 74. 2 • 10, 300 kms of new railway lines 9. 8 97. 3 2. 7 • 21 stations’ modernisation 10. 7 100 • 485 MT in major ports -- 2. 1 50/82. 4 50/17. 6 100. 0 70. 8 29. 2 A huge ask of private sector
Not Just Funds……. but also EFFICIENCIES Poor Institutional Structures Weak Incentives Poor Tariffs, Cost Recoveries & Financial Sustainability SUSTAINABLE INFRASTRUCTURE DIVERSE FUNDING SOURCES Majority Public EFFICIENT USAGE OF ASSETS Large T&D / NRW Losses EFFICIENT DEMAND MANAGEMENT OF RESOURCES Outdated MIS and FM Systems IDEAL REALITY Large Wastages • Increasing impact on natural resources which are fast depleting Interlinked – Efficient, predictable, financially sustainable enterprises will attract diverse funding options
Typical Situation • Implications • Less than 135 lpcd supplied – even the above 100 lpcd hugely un-even • Coverage poor • Sewerage situation even worse • WILL GET WORSE as population increases • Bulk water sources under severe pressure – looking for sources 50 kms away from city now • Investments of Rs 500 + crores required in BWS, Distribution etc Even the 4 buckets a day will fall to 2 if nothing is done!!
Funding? ? • Normal focus will be • To enhance bulk water • Find investments from government for capex • JNNURM – limited supply • Commercial finance – limited • SUSTAINABILITY is the key – both JNNURM and banks want that for lending Certainly not sustainable!!
Phase in a PPP Solution o Focus is not just funds but IBM: • • • Institutional ring fencing and efficient delivery Benchmarking and measuring performance improvements Managing for MAINTENANCE not just CAPEX • PPP Phase in • • Short term for technical baseline development, institutions development and revenue enhancements - for improving financials and confidence Medium term for expansion and larger capex investments
ADB Assistance for PPPs
PPP is seen as one key solution • Attract FRESH FUNDS into sector • Develop Utility Institution’s EFFICIENCIES • Faster response to CONSUMERS P Policy Strengthening • Policy for private – domestic & foreign investment • Regulation & Monitoring • Incentives for PPP’s • User charges policies • Viability support S Strong Stakeholder Capacities • Local and central government capacities to contract with and monitor PPPs • Good transaction advisory support • Good domestic contractors / operators Need for an Enabling Environment P S S T S Supply of long term funds • Long term to match long gestation infrastructure • Competitive and risk based • Strong domestic funding institutions with risk analysis ability T Trust Amongst ALL Stakeholders • Awareness for all – ee’s, consumers, private players • Transparency in process • Participatory processes
ADB’s Support to Government of India for Mainstreaming PPPs Follows the Value Chain Technical Assistance (TA) - Funds - Expertise Catalytic Lending Products - With & Without Recourse - Co-financing - Credit enhancement products Awareness & Capacity Building • For all stakeholders Sector Specific PPP Policy Development PPP Project Structuring – Demonstration Projects • Frameworks for PPP • Good early precedents Lending Window for PPP Projects -Non / Sub Sovereign Facility • Catalytic risk sharing funds
ADB Initiatives: Capacity Building - State Level TA 4890: Mainstreaming PPP at State Level (on-going) SCOPE • $ 3 million Technical Assistance program • Further $2 million in final stage of Board approval – approved already by President • Focused on 15 states FOCUS: Strengthening PPP Cells and Capacities by a) providing PPP and MIS in-house consultants for an extended period and b) access to legal advisory services • PREPARATORY: PPP constraints identification, PPP Frameworks and policies development • CAPACITY DEVELOPMENT: Training, manuals, good practices, improving systems for bid document and project appraisals, risk management systems • INSTITUTIONALISATION: MIS development, consultations with stakeholders, quality checks and improvements on PPP/bid documents, project pipeline conceptualisation and supervision of projects
ADB Initiatives: Capacity Building - State Level TA 4890: Mainstreaming PPP at State Level (contd. ) • STATUS Ø 13 PPP Specialists – 12 states and DEA Ø 14 MIS specialists appointed – 14 states and DEA Ø A Legal Advisory Panel Ø A large number of activities are taking place within the PPP Cells: ü Workshops and training activities – including on risk, capacity development, sector focus (urban, health, education), etc ü Exposure Visits and consultations with private sector and international governments ü Value added assistance being provided by cells to projects from across sectoral departments and ministries in project risk structuring, improving bid documents ü Assistance being provided for financial closure including VGF applications ü Development of action plans for project pipeline development – urban, health, education ü Several project concepts for PPP projects are being developed within the states for further DEA / ADB assistance Tremendous Response from States
ADB Initiatives: Capacity Building - Central Level TA 4993: Mainstreaming PPP at Central Line Ministries (on-going) SCOPE Ø $ 2 million Technical Assistance program Ø Focused on 6 line ministries Ø Strengthening PPP Cells and Capacities FOCUS Strengthening PPP Cells and Capacities by a) providing PPP and MIS in-house consultants for an extended period and b) access to legal advisory services Ø PREPARATORY: PPP constraints identification, PPP Frameworks and policies development Ø CAPACITY DEVELOPMENT: Training needs assessments, training, good practices inculcation, improvement in systems for project appraisals and bid processes Ø INSTITUTIONALISATION: MIS development, consultations, quality checks and improvements on PPP/bid documents, project pipeline conceptualisation and supervision of projects
ADB Initiatives: Sector Specific PPP Policy Assistance Health & Education PPP Frameworks (TA 4890 Related) SCOPE Ø Assistance provided for developing a PPP Framework for Health and Education Ø KPMG Consultants recruited Ø Cross sector-division ADB team worked with DEA (SAGF, SAUD, SANS) Ø Urban PPP workshops for all states held in Jaipur and Hyderabad in October 2007 (cross ADB divisions) Ø States developed action plans for PPP projects Ø Follow up activities co-ordinated by PPP Cells leading to pipeline of over 20 PPP project proposals from states ACTIVITIES Ø Consultation Visits with 5 states - T. N. , Orissa, Uttarakhand, Rajasthan, A. P. Ø ADB-KPMG Consultants Report Produced Ø 6 PPP Models Identified Ø Framework for PPP development outlined Ø Consultation Workshops on Draft Report held Ahmedabad & Panjim (February and April) 2008 Ø Workshop to evolve project concepts held - Panjim, April 08 – leading to a proposed concept pipeline of 20 projects Ø Assisted by PPP Cells in co-ordination and workshops – now assisting on project proposal development Ø Meetings being held with DEA and ADB for structuring projects and taking to market Tremendous interest from states in developing projects further in a challenging area
ADB Initiatives: PPP Project Structuring Assistance TA PPP Pilot Projects Initiative CONCEPT Ø Projects being evolved in the PPP Cells and across states and sectors Ø Need for assisting in structuring good pilot PPP projects • Create “demonstration” models • Allows for replication across country • ADB presence will improve risk perception • Catalyse private sector involvement Ø List of potential projects for TA already identified by DEA with assistance from PPP Cells – further can be added on Ø TA will leverage ADB TA funds with GOI development funds (IIPDF) to quickly provide transaction advisory and project preparation assistance to PPP proposals Ø Flexible, value added, quick response modality – first such TA from ADB
THANK YOU For inquiries: Anouj Mehta Tel No. : +632 632 -5930/5968 + Fax No. : +632 636 -2337 Email: anoujmehta@adb. org
Скачать презентацию Anouj Mehta Senior Infrastructure Finance Specialist Public Private
c4366daeeffa51fd2544f9ad8e5edf59.ppt