Motorways and Urban Mobility - International Road Federation

Common issues
The case study work also led the Working Group to conclude
that there are a number of issues that are common to most,
if not all, urban PPP projects. These include willingness
of users to pay for urban tolls, a wide enough choice of
competent companies to stimulate the best competitive
bids, and the need for sufficient capacity on the part of
the governmental agencies and contractors concerned to
manage complex urban road projects.
The latter not only implies possessing the requisite
knowledge and experience but also having the right
mentality. Compared to a traditionally procured project, for
example, the authority has less technical involvement and
needs to take on more of an auditing/monitoring role.
All these issues and more are being actively explored in the
ongoing activities of IRF’s PPP Working Group. If you would
like to know more, please contact Caroline Visser at cvisser@
irfnet.org.
Public-Private Partnerships
in Public Transport in Indian
Cities
Amitava Basu
President, Intercontinental Consultants and
Technocrats Private Limited, New Delhi, India
Recognising the importance of efficient urban transport –
notably in the light of escalating populations and the fact
that urban centres currently contribute over 60% of GDP
– the Government of India has drawn up a National Urban
Transport Policy (NUTP) that focuses on moving people
and not vehicles. It also places particular emphasis on
Public-Private Partnerships (PPPs) and innovative financing
methods to raise resources.
Public-Private Partnership in urban transport
PPP implies projects based on a contract or concession
agreement between a governmental entity and a private
sector company for delivering an essential service upon
payment of user charges. While a PPP mechanism changes
URBAN PUBLIC-PRIVATE PARTNERSHIPS
the means of delivering services, it does not change the
authority that is accountable for their provision. It is
still the governmental entity’s obligation to provide the
service required. The only change is in the role of the
governmental entity, which assumes a managerial function
rather than engaging in actual operations. In other words,
the governmental entity is entrusted with the responsibility
of being an overseer of operations rather than a resource
manager.
The involvement of the private sector in this domain,
which has traditionally been public, is a sensitive matter.
It necessitates a detailed process of consultation with the
end consumers and the members of the state transport
authority, not only to raise awareness but also to thoroughly
gauge stakeholder concerns. The consultation is a very
important step, which needs to be carried out before the
bidding process is started.
The state transport authority also needs to ascertain
whether any approvals need to be obtained from a higher
IRF BULLETIN SPECIAL EDITION: URBAN MOBILITY |
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