Abstract
The goal of this study is to examine the failure of operational public-private partnership (PPP) infrastructure projects in India. The case study based analysis is done of eleven operational PPP projects from infrastructure subsectors like roads, metro rail, seaports, and power projects to investigate various risks faced during the life cycle of projects. The construction risks like land acquisition delay, change in scope, delay in financial closure resulting in time and cost overrun, revenue risk of not getting adequate revenue during operation phase and legal disputes between the authority and the concessionaire are prominent risks observed in these projects. Mitigating these risks through efficient life cycle contract management and appropriate allocation of risk creates adequate risk-adjusted financial returns to the private developers and value for money for the government. The study concludes that failure in contract and risk management in case of the majority of operational projects resulting in disappointing financial returns is the major reason for the private developer's apathy towards participation in a once successful PPP program in India.
Highlights
Before the advent of private partnership (PPP), the government provided infrastructure services in India through public procurement, financed by the government budget
Even the operational projects disappointed the private developers due to its failure in providing adequate financial returns which made them shying away from participating in PPP projects and even the lenders had restrained themselves from lending to PPP projects
The objective of this research is to do the case studies based empirical study of operational PPP projects in India to understand the underlying economic, financial and institutional constraints faced by PPP projects and their life-long contract and risk management and to investigate the causes of the private developer's apathy toward participation in PPP program which makes once successful PPP program comes to standstill
Summary
Before the advent of PPP, the government provided infrastructure services in India through public procurement, financed by the government budget. A large number of already started projects were delayed, stalled, and terminated. Even the operational projects disappointed the private developers due to its failure in providing adequate financial returns which made them shying away from participating in PPP projects and even the lenders had restrained themselves from lending to PPP projects. All this resulted in zero participation by private developers in the year 2019 even if the government's desire to initiate new PPP projects. The objective of this research is to do the case studies based empirical study of operational PPP projects in India to understand the underlying economic, financial and institutional constraints faced by PPP projects and their life-long contract and risk management and to investigate the causes of the private developer's apathy toward participation in PPP program which makes once successful PPP program comes to standstill
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
