APUFIDC
APSWC


PPP

Public Private Partnership (PPP) Projects initiated by APUFIDC

The Government of India recognizes that there is significant deficit in the availability of physical infrastructure across different Sectors and that this is hindering economic development. Provision of quality infrastructure is critical for the economy to attain a higher growth trajectory on a sustained basis. The development of infrastructure requires large investments that cannot be undertaken out of public financing alone, and that in order to attract private capital as well as the techno-managerial efficiencies associated with it, the Government is committed to promoting Public Private Partnerships (PPPs) in infrastructure development. In addition to leveraging public capital to attract private capital and undertaking a larger shelf of infrastructure projects, PPPs bring in the advantages of private sector expertise and cost reducing technologies as well as efficiencies in operation and maintenance.

 

Public Private Partnerships (PPPs)

The Government of India recognizes that there is significant deficit in the availability of physical infrastructure across different Sectors and that this is hindering economic development. Provision of quality infrastructure is critical for the economy to attain a higher growth trajectory on a sustained basis. The development of infrastructure requires large investments that cannot be undertaken out of public financing alone, and that in order to attract private capital as well as the techno-managerial efficiencies associated with it, the Government is committed to promoting Public Private Partnerships (PPPs) in infrastructure development. In addition to leveraging public capital to attract private capital and undertaking a larger shelf of infrastructure projects, PPPs bring in the advantages of private sector expertise and cost reducing technologies as well as efficiencies in operation and maintenance. Public Private Partnerships (PPPs) present the most suitable option of meeting these targets, not only in attracting private capital in creation of infrastructure but also in enhancing the standards of delivery of services through greater efficiency.

 

Some of the primary reasons for public agencies to enter into public-private partnerships include:

  • Accelerating the implementation of high priority projects by packaging and procuring services in new ways;

  • Turning to the private sector to provide specialized management capacity for large and complex programs;

  • Enabling the delivery of new technology developed by private entities;

  • Drawing on private sector expertise in accessing and organizing the widest range of private sector financial resources;

  • Encouraging private entrepreneurial development, ownership, and operation of highways and/or related assets; and

  • Allowing for the reduction in the size of the public agency and the substitution of private sector resources and personnel

 

Government of India Support (PPP Cell, DEA, GOI)

The Government of India will extend total Viability Gap Funding under this scheme which shall not exceed twenty percent of the Total Project Cost; provided that the Government or statutory entity that owns the project may, if it so decides, provide additional grants out of its budget, but not exceeding a further twenty percent of the Total Project Cost.

 

The “India Infrastructure Project Development Fund” (IIPDF), PPP Cell, DEA, GOI

The procurement costs of PPPs, and particularly the costs of Transaction Advisors, are significant and often pose a burden on the budget of the Sponsoring Authority. Department of Economic Affairs (DEA) has identified the IIPDF as a mechanism through which Sponsoring Authority will be able to source funding to cover a portion of the PPP transaction costs, thereby reducing the impact of costs related to procurement on their budgets. The IIPDF will be available to the Sponsoring Authorities for PPP projects for the purpose of meeting the project development costs which may include the expenses incurred by the Sponsoring Authority in respect of feasibility studies, environment impact studies, financial structuring, legal reviews and development of project documentation, including concession agreement, commercial assessment studies etc.

 

Transaction Advisors:The Government of India has considered that implementation of this policy will require a capacity to determine the suitability and feasibility of PPP transactions and to implement agreed transactions. This entails agencies concerned at central, state and municipal government level have access to appropriate advisory support for the implementation of PPP transactions. Accordingly, Government of India has finalised a panel of pre-qualified Transaction Advisers to assist the agencies concerned with identifying and retaining transaction advisers. This panel is available to all sponsoring authorities includingcentral, state and municipal governments and their agencies who are undertaking PPP transactions.

 

 PPP Models in practice

There are range of PPP models that allocate a responsibilities and risks between the public and private partners in different ways. The following terms are commonly used to describe typical partnership agreement.

 

  • Build Operate and Transfer (BOT)

  • Build-Own-Operate-and-Transfer (BOOT)

  • Build-and-Transfer (BT)

  • Build-Own-and-Operate (BOO)

  • Build-Lease-and-Transfer (BLT)

  • Build-Transfer-and-Operate (BTO)

  • Design Built Finance Operate (DBFO)

  • Contract-Add-and-Operate (CAO)

  • Develop-Operate-and-Transfer(DOT)

  • Lease Management Agreement

 

A.P. State Government Support

 

State PPP Cell, Finance Department:

Government of Andhra Pradesh has setup a dedicated Public Private Partnership (PPP) Cell under Finance Department. This PPP cell has been setup as per the MOU signed between Government of Andhra Pradesh and Department of Economic Affairs, Ministry of Finance, Government of India.

 

Activities:

  • Nodal agency for processing all PPP projects in the State

  • Serve as the repository of all information relating to PPPs in the  State, including on  best   practices, guidelines, schemes, PPP pipelines, etc.,

  • The relevant Departments / Ministries of the State will Coordinate with the PPP Cell at all  stages of project development

  • Advise the relevant Departments / Ministries in project preparation based on the policy framework to be developed under the TA Project, and in coordination with the PPP Cell in DEA.

  • All proposals forwarded to GOI for any assistance from the TA Project will be routed   through the PPP Cell.

  • The PPP Cell in the State Government will interact with PPP Cell in DEA in identifying   bankable projects.

 

GoAP initiative: THE A P INFRASTRUCTURE DEVELOPMENT ENABLING ACT, 2001 (ACT No. 36 OF 2001)

Andhra Pradesh is a pioneer in enacting the Infrastructure Authority Act. It covers the infrastructure sectors of highways/ bridges, airports, seaports, power, water supply and sanitation, telecommunication networks, gas distribution, and waste management. It also covers urban infrastructure, including housing, urban development, medical facilities, and leisure facilities.

The legislation aims to facilitate private developers in securing the mandatory administrative approvals and lays down provisions for arbitration and fiscal regulation.

Andhra Pradesh Urban Finance & Infrastructure Development Corporation Ltd. (APUFIDC)

An important mandate of APUFIDC, as the Asset Management Company for APUIF, is enabling development of infrastructure projects under Public Private Partnership (PPP) mode in Urban Local Bodies particularly in small and medium towns where limited capacity precludes these ULBs from moving forward on their own with PPP projects.

 

APUFIDC is the Nodal Agency for facilitating the development of infrastructure projects in urban local bodies (ULB) under various schemes funded by the central and state governments. We have set-up Public Private Partnership (PPP) Cell with a multi-disciplinary team. Besides the said team, wherever required we have been appointing project consultants from out of the empanelled list of the government. This PPP cell is already handling the projects like energy efficient street lighting in the selected ULBs, foot over bridges, multi level car parking and pay & use toilets.

 

In this direction, APUFIDC has established a dedicated PPP Cell at the Head Office Level to monitor the PPP projects already initiated on one hand and to conceptualise and develop new projects preceded by preparation of project reports and assist APUFIDC in the complete cycle of PPP projects development and implementation including bid process management, and assist in seeking VGF funding, if necessary, from PPP Cell, DEA, GOI.

 

APUFIDC appointed Transaction Advisors by inviting Financial Bids, from out of the empanelled list of TAs by the DEA, GOI.

 

S.No.

Name of the Project

Transaction Advisors

1

O&M of Street Lighting in 25 Urban Local Bodies (ULBs) in Andhra Pradesh

M/s. Price House Water Coopers

2

Foot Over Bridges (FOBs) in Urban Local Bodies (ULBs)  in Andhra Pradesh

M/s. Price House Water Coopers

3

Pay & Use Toilets (PUTs) in Urban Local Bodies (ULBs)  in Andhra Pradesh

M/s. Price House Water Coopers

4

Fully Automatic Multi Level Car Parking near Railway Station at Tirupathi

M/s. CRISIL Risk & Infrastructure Solutions

 

1. Foot Over Bridges

  • Single bid for 7 FOBs in 4 ULBs was received. Government issued orders accepting the sole bid and accordingly APUFIDC issued Letter of Awards to Prakash Arts Pvt. Ltd. for 5 FOBs in 3 ULBs ( Ongole-1 site, Guntur-2 sites & Chittoor-2 sites) out of 7 FOBs in 4 ULBs. Agreements yet to be executed.  Bhimavaram 1 site & Guntur 1 site yet to confirm the availability of site.

 

2. Pay and Use Toilets

  • Two single bids each for different locations for 17 PUTs in 8 ULBs were received.

  • The Two Bidders (Suvidha Sanitation & Suvidha Social Organization) have executed the Concession Agreements for 7 PUTs in 3 ULBs (Anakapalle, Amalapuram, & Gudivada).

  • As the said sites are in disputes M/s.suvidha sanitation & M/s. Suvidha Social Organization requested to return the performance security and bid security. APUFIDC has returned the performance securities and bid security to both the bidders.

 

3. Fully Automatic Multilevel Car Parking at Tirupati

  • Rebidding of Fully Automatic Multi Level Car Parking at Tirupathi was initiated and only one bid was received and after evaluation the bid got rejected due to conflict of interest.

  • M/s.CRISIL has suggested APUFIDC to go for 3rd time rebidding. MA&UD Dept. in its Letter dated 29.10.2013 accepted 50% relaxation on setback and requested to revise the Request for proposal (RFP) and call fresh bids.

  • APUFIDC has revised the RFP and fresh bids need to call.

 

4. Street Lighting Project in 25 ULBs

  • As against 25 ULBs notified for energy saving street lighting, only two bids were received and after due evaluation they were rejected as they were non-responsive. Government approval has been requested for re-bidding. Government has given permission for rebidding.

  • Pre-bid meeting was held on 29-01-2013 for the finalization of pre-bid queries. The bidders requested to perform energy audit in 25 ULBs before the selection of successful bidder and sharing of O&M. Accordingly letters were sent to NREDCAP to perform energy audit in 25 ULBS, but NREDCAP are still in process of selecting the bidders and the project is getting delayed.

  • APUFIDC discussed with Energy Efficient Service Ltd (EESL) for baseline study and EESL informed that they will furnish fresh proposal for all the 25 ULBs by 15-12-2013. A meeting was held in CDMA on 12-12-13 with EESL, in the meeting APUFIDC & CDMA requested EESL to furnish Pilot Project Proposal for Kavali Municipality, EESL had furnished the proposal for Kavali Municipality.


Andhra Division:  Total ULBs =  25

Group-1 ULBs

Group-2 ULBs

Group-3 ULBs

Group-4 ULBs

1. Ananthapuram

1. Kurnool

1. Kakinada

1. Narsaraopeta

2. Dharmavaram

2. Adoni

2. Narasapur

2. Chirala

3. Guntakal

3. Nandyal

3. Bhimavaram

3. Ongole

4. Hindupur

4. Prodattur

4. Palacole

4. Tenali

5. Tadipatri

5. Cuddapah

5. Tadepalligudem

5. Nellore

6. Madanpalle

6. Yemminganur

6. Tanuku

6. Guntur

7. Tirupathi