Page 186 - ITU-T Focus Group Digital Financial Services – Executive Summary

The execution is orchestrated by the SPV which is supported by Project Management Consultants (PMC). The
PMC is tasked with developing the technology solution, defining integration touchpoints, and ensuring
overall financial sustainability of the project. The implementation vendors – technology providers - in case of
optic fiber connectivity, ITMS and AFCS – and bank – in case of CCPS – work with the SPV and PMC in order
to deliver the unified solution for citizens.
The overall program – which has many firsts from Indian perspective – started in September 2015 – wherein
first three months were spent on citizen consultations and eliciting appetite of private sector in taking up
urban transformation projects. The projects were then phased out such that interdependencies of various
components (developed by different vendors) were mapped, and infrastructure heavy initiatives were
commenced first, followed by deployment of ICT street infrastructure and software development. The
implementation is currently underway and the systems are expected to go live in April 2017.
The project selected effective technology suitable to Indian conditions. The provision of some services
through a PPP results in reduced financial dependence in an already constrained urban funding scenario.
Further, financial support from the central government enhanced the project’s attractiveness for
components of projects which did not have a viable PPP alternative.

3 Conclusions

Ahmedabad’s pioneering PPP model for CCPS system has helped in reducing upfront investments and
increasing alternate revenues in capital-intensive ICT projects. The model is worth emulating across other
transit systems in developing world.
The key lessons learned from this initiative are:
• Ensuring financial sustainability and proper risk segregation are critical and are an essential feature
of ICT based capital-intensive projects
• The dissemination of information and citizen consultation builds legitimacy required for such large
scale projects.

A References

United Nations Department of Economic and Social Affairs (DESA), Population Division. World Urbanization
Prospects: 2014 Revision, Highlights. 2014, ST/ESA/SER.A/352

World Economic Forum. Reforms to Accelerate the Development of India’s Smart Cities, Shaping the Future
of Urban Development & Services. April 2016

PricewaterhouseCoopers and Save the Children. Forgotten Voices: The world of urban children in India. April
2015
High Powered Expert Committee (HPEC) for Estimating the Investment Requirements for Urban
Infrastructure Services. Report on Indian Urban Infrastructure and Services. March 2011. Available at:
http://icrier.org/pdf/FinalReport-hpec.pdf

Ministry of Urban Development, Government of India. Smart Cities: Mission Statement & Guidelines. June
2015.

This case study has been prepared by:

Hazem Galal (PwC)

182 U4SSC series