Page 86 - Enhancing innovation and participation in smart sustainable cities
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United for Smart Sustainable Cities
Enhancing Innovation and Participation
Critical success factors
The critical success factors have been:
the aviation policy of the Government of India;
the fact that PPPs can supplement limited public sector capacities and raise additional finance in an
environment of budgetary constraints;
privatization has improved the breadth, efficiency and the quality of services available.
Challenges ahead
The PPP mode comes with its own set of challenges since attracting private investment is not straightforward. The
private sector not only requires an investor-friendly regulatory environment, but also returns on investment. The
Government of India (GoI), therefore, has been focusing on the development of enabling tools and activities to
encourage private sector investments in the country through the PPP format.
The Government needs to work on each stage of PPP development — planning, designing, contracting, financing
and monitoring. New models for PPP need to be created to cater to the current challenging business climate.
Unless project agencies are suitably empowered for effective and time-bound decision making, the PPP agenda of
the country is going to take time to evolve and develop. There also needs to be a clear demarcation of the risks to
be borne by public and private parties.
Transferability to other cities and scalability:
Further development is under progress, through the PPP model for new airports such as Goa, Navi, and Mumbai.
These projects are based on the learnings of over a decade of the privatization process. These new benefits have
started percolating down to the smaller cities.
The projects are scalable, as there is immense opportunity to exploit the available commercial spaces. With a good
degree of innovation, the private enterprises involved in these projects are able to generate a reasonable amount
of revenue, and since this revenue is also shared with the Government, a certain portion of the finances could be
used to upgrade and create new airports in other lesser developed regions, which are also in need of a better
transportation infrastructure.
A References
Assessment of the airport ppp experience in India – ICAO.
www.icao.int/Meetings/a39/Documents/WP/wp_294_en.pdf
PPP partnerships in India – FICCI EY.
http://www.ey.com/publication/vwluassets/ey public-private-partnership-the-next-continuum
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