IFS, DEA, Organizes Workshop On “Public Private Partnership (PPP) Project Structuring Toolkit For Roads And Highways Sector”

Posted On - 1 January, 1970 • By - admin

INTRODUCTION:

The Infrastructure Finance Secretariat (“IFS”), operating within the Department of Economic Affairs (“DEA”), Ministry of Finance (“MoF”), organized a two-day workshop[1] on the 16th and 17th November 2023. Held in New Delhi, the primary objective of the workshop was to educate Project Sponsoring Authorities (“PSAs”) of the roads and highways sector about the intricacies of structuring Public Private Partnership (“PPP”)[2] projects. Attended by over 70 representatives from both the Centre and State/UT Governments, this event marked the commencement of a series of workshops for the dissemination of the newly developed PPP Structuring Toolkits.

KEY POINTS:

Recognizing the inherent challenges of PPP projects, the IFS has undertaken a groundbreaking initiative by developing PPP Structuring Toolkits. These toolkits provide PSAs with indispensable web-based tools for evaluating the viability of projects in the PPP mode.

The inaugural workshop was graced by Shri Ajay Seth, Secretary, DEA, MoF, who underscored the critical role of infrastructure in driving India’s economic growth. He emphasized the need to build a repository of viable PPP projects to propel the country towards sustained growth.  He further urged Project Sponsoring Authorities to identify opportunities that can facilitate the transition from Engineering, Procurement, and Construction (“EPC”) mode to the PPP mode for efficient infrastructure delivery.

Shri Antony Cyriac, Adviser, DEA, expounded on how infrastructure development is intrinsically linked to GDP growth. Ms. Preeti Jain, Director, DEA, added depth to the discussions by stressing the imperative nature of appropriately structuring PPP projects, given their inherent complexities.

The workshop, structured with precision, provided a platform for an in-depth exploration of the PPP Structuring Toolkit. It aimed to ensure a practical understanding of its five integral tools:

  • Suitability Filter
  • Family Indicator Tool
  • Mode Validation Tool
  • Financial Viability Indicator
  • Value for Money Indicator Tool

Additionally, the Contingent Liability Toolkit, offering a hands-on approach for estimating potential payouts due to various contingencies, was showcased and discussed.

The content-rich sessions provided a comprehensive understanding of the PPP Structuring Toolkits, aiming to equip PSAs with the requisite knowledge and tools for effective project structuring.

CONCLUSION:

The successful organization of this workshop by the Infrastructure Finance Secretariat reflects the government’s commitment to fostering sustainable infrastructure development through innovative approaches. As the first in a series, this event paves the way for enhanced collaboration and knowledge-sharing among Project Sponsoring Authorities, catalyzing the transition towards PPP mode for robust and efficient infrastructure delivery across the nation. The unveiled PPP Structuring Toolkits stand as a testament to the government’s dedication to addressing the complexities of PPP projects, contributing to India’s economic growth and development.

[1] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1977754.

[2]https://www.pppinindia.gov.in/ppp_structuring_toolkit.