Download - Case Study - PPP in Del-Gurgaon Expressway
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
1/12
PPP in Delhi-GurgaonPPP in Delhi-GurgaonExpresswayExpressway
Is It the model project for allIs It the model project for all
stakeholdersstakeholders
Submitted y!-Shailesh "ggarwal# Sumit "ggarwal #$ahul %iwari# &ukesh
Sharma# 'i(ek Parmar
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
2/12
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
3/12
I)%$*D+,%I*)I)%$*D+,%I*)
Stakeholders Public Institution: National Highway Authority of India (NHAI) Private Institution: DS onstructions Inde!endent onsultants: "I#$S or!oration %overn&ents: Haryana State %overn&ent '' Delhi State %overn&ent sers: Patrons
Salient eatures ost: IN" *+ ,illion -ength of $.!ressway: /010 k&s No of lyovers 2 3ver!asses: ** #oll -ane: 4/ -ane State of the Art Pla5a (Asia6s ,iggest7 8orld6s 4rd
,iggest) #9 Surveillance till I%I Air!ort 2 S3S #ele!hony every *1k&s
Pri&ary Issues #ra;c ongestion Pedestrian Safety
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
4/12
./ PPP00./ PPP00
-i&itation of %overn&ent "esources 2 a!acity to &eet Infrastructure re
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
5/12
,oncession,oncession
"greement"greement
IssuesIssues No >odel oncession Agree&ent for "eference or ,ench&arking Pur!oses
-ittle or No Docu&entation $.isted at the ti&e of ontract for ,3# basis (/++/)
No inclusion of !ossible risks and co&!le.ities that could !ro! u! in the !ro?ect
Single Inde!endent onsultant for both Design 2 onstruction Phase and 3!erations
2 >aintenance Phase High $.!ertise onsultant for D2 Phase and -ow $.!ertise onsultant for 32> Phase were
generally selected1 #his !ractice was not adhered to1
#here was !rovision of only * I: "I#$S or!oration
#he bidding !rocess for onsultants was also anti=co&!etitive and !robably nfair
Highway a!acity >iscalculation 2 No Provisions for a!acity Aug&entation in thene.t /+ ears
Service Buality to sers was abys&al Parallel o&!eting "oads were !rovisioned to be develo!ed but they were of inade
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
6/12
,onstruction,onstruction
Phase IssuesPhase Issues
-and Ac
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
7/12
,oncession,oncession
"greement"greement
)ew &odel)ew &odel a!acity Aug&entation Issue addressed
,ased on Phased Develo!&ent instead of High ost "oads for catering to Pro?ected %rowth inthe -ong #er&
oncession Period deter&ination was based on !resent and !redicted future tra;c
#oll harges $.e&!tion for -ocal #ra;c A &onthly !aid !ass could be charged for local tra;c leading to lower toll revenues Increased 9% &echanis& to &ake !ro?ects viable
-ocal Acce!tance i&!ortant to &itigate !otential for !rotests for Pro?ect to beco&e a >odelPro?ect
lai&s in case of authority6s inability to !rovide resources were better dealt with
Safety Issues were clearly tackled #olling !rohibited till -and used for Highway was &ade usable
"ight of 8ay !rovision i&!le&ented7 whereby C+E of the land ac
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
8/12
1inancial "nalysis1inancial "nalysis
#oll harges were received and not shared by the !rivate !arty If the total tra;c count increased to &ore than *4+7+++7 half the
total revenue would be shared with NHAI !front ost: IN" C1G r (oncessionaire: IN" r) %rant: IN" (*) r1 NHAI ,orne ost: IN" *4*1G r or!orate #a. "ate: 441E7 >ini&u& Alternate #a.: **1/E J #a.
Holiday for the *st*+ years KSection C+(*a)L
Huge Pro@t Potential for Private Party7 as esti&ated tra;c count was0+++ while the actual was around +++ !assenger vehicles daily
An increase of *+7+++ vehicles would lead to additional inco&e ofIN" 014cr M "s /+car
No toll charges revision or concession !eriod revisions wereenvisaged creating huge !ossibility of !ro@teering by the !rivate!arty for a long ti&e
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
9/12
Impact onImpact on
stakeholdersstakeholders
>ore than desired !ro@ts could be ski&&ed by DS onstructionsdue to incorrect tra;c !ro?ections As toll !rices could be changed with changes in 8PI7 DS onstructions
could also bene@t if ination rose7 leading to !er!etual growth in inco&e
while the costs were &ore one ti&e and u!front in nature %reater #ra;c counts could lead to huge gains being &ade by DS
onstructions
$nviron&ental N%3s !rotested the use of asbestos during theconstruction of the highway and also the huge nu&ber of treesthat were felled for "ight of 8ay i&!le&entation
Patrons were ha!!y about the road but were not satis@ed aboutits utility due to !eak hour tra;c congestion and drivers inabilityto fa&iliari5e the&selves to #olling Process
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
10/12
1inancial Implications of the1inancial Implications of the
Project on 'arious StakeholdersProject on 'arious Stakeholders
DS ,onstructions >ore than desired !ro@ts could be ski&&ed due to incorrect tra;c
!ro?ections As toll !rices could be changed with changes in 8PI7 DS onstructions could
also bene@t if ination rose7 leading to !er!etual growth in inco&e while thecosts were &ore one ti&e and u!front in nature %reater #ra;c counts could lead to huge gains being &ade by DS
onstructions
)."I No @nancial reward directly fro& #oll ollection till tra;c count is below
*4+7+++ leading to loss of !otential inco&e
$I%ES ,orporation No inancial i&!lication on the !erfor&ance of the highway Patrons
8ith rise in ination7 toll !rices would rise leading to greater outow ofdis!osable inco&e
>ulti!le-ocal users of the highway had to fork out a huge a&ount tillthe >odel oncession Agree&ent was !ut in !lace
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
11/12
"isks >itigated in the New >odeloncession Agree&ent ,apacity "ugmentation $isks
($.!osure: NHAI) %ra2c based %oll ,harges:
1inancial $isk ($.!osure: DSonstructionsPatrons)
$esource .ando(er Delays:*perational $isk($.!osure: DSonstruction)
Safety Issues! Safety 3 +sage$isks ($.!osure: DSonstructionsNHAIPatrons)
Inade4uate DP$s:En(ironmental 3 *perational$isks($.!osure: DS onstructions)
,hanges of Scope: *perational3 1inancial $isk ($.!osure: DSonstructions)
3ther Potential "isks Political $isk: orce >a?eure $vents
with res!ect to change in Political scene Going ,oncern $isk: If the o!erator is
unable to run the !ro?ect successfully7then the lender6s @nancial e.!osure isat risk (No "ight of Substitution stated)
%ermination $isk: No sti!ulationstated with res!ect to whether authoritywill buy out the venture in casedevelo!er and lenders don6t getadeetro route isdevelo!ed in the region
Is the &odel ,oncessionIs the &odel ,oncession
"greement (iable enough to"greement (iable enough to
mitigate project risks0mitigate project risks0
-
8/10/2019 Case Study - PPP in Del-Gurgaon Expressway
12/12
#HANOS