Infrastructure Development, PPPs, and Regulation
The biggest constraint to growth in India and the developing world is infrastructure. Infrastructure, being a natural monopoly, has traditionally been the responsibility of the government for development. However, capacity deficit (financial and human) in government led to the involvement of private players with greater risk sharing, thus switching from the traditional contract model to the Public-Private-Partnership (PPP) model.
The advent of PPPs brought in significant challenges, for both the Government and the private players. While roles and mindset needed redefinition, especially on the Government side, appropriate regulation also became more critical. And there is also a greater need to learn from both successes and failures of PPPs in the infrastructure sector to bring in greater maturity and professionalism in this eco-system by developing competencies and perspectives.
This IIMBx course Infrastructure Development, PPPs, and Regulation sheds light on infrastructure and its characteristics; key implications of Public-Private-Partnerships (PPPs) and commercialisation; and the factors that drive a successful PPP experience.
This course will also provide a grounding in theory and further build on case studies from various infrastructure sectors, leveraging India’s rich experience in PPPs. There is much that a global audience can learn from this course as the implications of commercialisation remain constant, irrespective of geography.
Week 1: Introduction to Infrastructure Development
- Characteristics of Infrastructure
- Drivers of Commercial Outlook
- Implications of Commercialization
Week 2: Project Structuring
- Cost, Returns and Bundling/Unbundling
- Case I: Delhi Metro Express Line
- Case II: RSWC and SSLL: PPP in Agri Warehousing
Week 3: Appraisal, Risk Assessment and Risk Management
- Case I: Yamuna Expressway
- Case II: Kutch Railway Company Limited
Week 4: Tendering and Bidding
- Case I: GMR KUAEL: The Longest Road PPP
- Case II: Airport Privatization: Bidding Process for Delhi and Mumbai
- Case III: AAI Bidding for Bogapuram Airport: From Authority to Bidder
- Case IV: Effect of Lega; Issues in Infrastructure Development: The Case of Container Terminal Bids in Jawaharlal Nehru Port Trust
Week 5: Legally Tenable Concession Agreements and Post Project Ownership
- Case I: LTTIL: Coimbatore Bypass Project
- Case II: Evolution of Model Concession Agreement for National Highways in India
- Post Project Ownership
Week 6: Regulatory and Dispute Resolution Framework and Conclusion
- Regulatory and Dispute Resolution Framework
Upon successful completion of this course, learners should be able to:
- Define infrastructure and explain the key characteristics of infrastructure
- Identify the drivers for commercial outlook
- Identify the key implications of commercialisation of infrastructure
- Structure infrastructure projects
- Assess and manage risks in infrastructure projects, and explain how risks can be shared between the government and the PPP players
- Explain the procedure for tendering and bidding
- Develop sustainable concession agreements
The present mood in the infrastructure sector is somber, with huge opportunities on the one hand and a great deal of scepticism on the other. Non-Performing Assets (NPAs) are piling up in Public Sector Banks and infrastructure is a very big contributor. Several things are going right, and several things are going wrong. However, there are a plethora of opportunities in this ambiguous situation.
Hence, this course has something for lawyers, public policy practitioners, economists, strategic investors in the infrastructure industry, financial analysts in banks/sovereign wealth funds/ infrastructure focused mutual funds and equity research, turn around specialists in stressed assets, private equity investors, investment bankers, credit rating professionals, management consultants, and management graduates.