Report analyzes PPP regulatory landscapes across 140 economies and suggests a significant correlation between regulatory reforms relating to PPPs and PPP infrastructure investments.
- PPP is an approach under which public services are delivered by private sector (both non‐profit and for‐profit organizations) while responsibility for providing resources rests with the government.
Key Highlights of the report
- Public Fiscal Management System (PFMS): Only 19 economies have adopted specific provisions for budgeting, reporting, and accounting, and only 18 economies publicly disclose PPP liabilities.
- Robust PFMS helps mitigate potential financial sustainability challenges that a distressed or cancelled PPP could create.
- Monitoring and Evaluation: Only 37% of the economies require payments linked to performance.
- Renegotiation of PPP contracts: Expressly regulated by ~90% surveyed economies with the issue of changes in risk allocation explicitly addressed in only 19% of the economies.
Challenges to PPP in India
- Financial: Aggressive bidding and project underpricing, inadequate ‘creative destruction’, project delays resulting in cost overruns, etc.
- Capacity and procedural challenges: Inadequate management capacity of public sector, delays in obtaining requisite clearances such as Environmental Impact Assessments, etc.
- Regulatory and Institutional gaps: Absence of comprehensive National PPP policy, inadequate information availability and reliability about private sector service providers, etc.
Existing PPP Regulatory Framework in India
Kelkar Committee (2015) Recommendations on PPP
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