Comparison of Indian PPP Construction Industry and European PPP Construction Industry: Process, Thresholds and Implementation

Abstract

Since the 1990’s, there has been a rapid rise of Public Private Partnerships (PPPs) across the world. Governments in developing as well as developed countries are increasingly using this procurement method to bridge the much needed infrastructure gap. PPPs are seen as an important tool for producing an accelerated and larger pipeline of infrastructure investments, and catching up with the infrastructure deficit. Arguably, this is why developed and especially developing countries are very keen on PPP models. This paper will compare the PPP procurement process followed in Europe compared to India and presents a thorough review of literature on governance issues, the process, thresholds and choices that the Indian construction industry faces in grappling with this procurement route, together with the associated challenges. The methodology used is a combination of reviewing documentation available/produced to date with a combination of comparison carried out based on Social, Legal, Economical, Environmental, Political, and Technological (SLEEPT). Consideration is also given to the different PPP models used for different sectors in Europe and in India. The paper argues and concludes that the challenges that confront the construction industry in India are multifaceted and likely to impact on the implementation of the PPP model if a strict governance regime is not followed in terms of process, thresholds and implementation.