A BOLT from the BOOST for City!

A BOLT from the BOOST for City!
By S Praveen Dhaneshkar, DH News Service, Bangalore:
In a fillip to seeking private participation in infrastructure projects in the State, the government has accorded priority to PPP (Public-Private-Partnership).


The City could soon see active private participation with various civic stake-holders going by the objectives of the new infrastructure policy 2007.

This would result in private players aiding key infrastructure projects by joining hands with civic agencies, viz BMTC, BBMP, BMRC, BWSSB, BDA and BMRDA.

In a fillip to seeking private participation in infrastructure projects in the State, the government has accorded priority to PPP (Public-Private-Partnership). The policy already clerared by the cabinet on July 4, is likely to be tabled in ongoing session of the State assembly.

Sources in the Infrastructure Development Department said the new policy will be anchored through a specially constituted PPP Cell headed by the Principal Secreatry (Infrastructure), a pilot initiative in the Infrastructure Development Department.

“This will result in better urban transport systems in MRTS, Monorail, High Capacity Bus Systems and attract much needed investment in Bus/Truck terminals, Multi-storey parking lots, Construction of elavated roads on Storm water drains, Better public markets and even speed up the process of a high-speed rail link between the City and Devanahalli. The cell would coordinate and facilitate identification, development and implementation of infrastructure projects, including facilitation for obtaining clearances and approvals on a PPP route” sources said.

Window agency

A ‘Single Window Agency’ (SWA) for PPP has been constituted under the chairmanship of the Chief Secretary with other principal secretaries as members. At the district level the PPP cell will be steered by the DC.

The SWA apart from promoting infrastructure projects will also approve projects upto Rs 50 crore. Projects exceeding Rs 50 crore will be approved by a high level committee constituted under the chairmanship of the Chief Minister.

“PPP would be considered both in new infrastructure projects as well as in managing existing ones. As far as possible for all new investments in infrastructure, option of implementing a project through a PPP model will be considered first.

The government would consider investing directly in a project only after satisfying itself that the same cannot be implemented via a PPP route” sources added.

A new addition to the policy is the introduction of a ‘Swiss Challenge’ method for awarding contracts under the policy for promoting innovative projects and expediting implementation of infrastructure projects.

This method also allows the concerned department to take necessary actionto obtain exemption under section 4(g) of the Karnataka Transparency Act 1999 in respect of projects which are urgent in nature and taken up under the ‘Swiss Challenge’ method.


PPP MODEL

*Project implementation by GoK/GoK agency followed by a medium or long-term contract to a private player.
*Implementation by a SPV (Special Purpose Vehicle) set-up by a GoK/GoK agency followed by a divestiture to a private operator after stabilisation of operations.

*Project implementation by a private developer/operator or a joint venturewith GoK under a licence /concession structure.

AGREEMENTS

*Build and Transfer (BT)

*Build-Lease-Transfer (BLT)

*Build-Transfer-Operate (BTO)

* Build-Operate-Transfer (BOT)

* Build-Own-Operate-Transfer (BOOT)

* Build-Own-Operate (BOO)

* Build-Operate-Share-Transfer (BOST)

* Build-Own-Operate-Share-Transfer (BOOST)

* Build-Own-Lease-Transfer (BOLT)

SWISS MODEL

Swiss Challenge is a new bidding process in which a public authority which has received an unsolicited bid for a public project may open the project for other bidders. They can then match or exceed the first bid. Introduced to seek private sector participation in infrastructure projects, the method allows third parties to make better challenges for a project during a designated period. The process has however run into controversy with the State Government using this route to throw out NICE from the BMIC project. Sources said the Centre too has raised doubts over it being a non-transparent after which the finance department too stating that it was not compatible with the provisions of the Karnataka Transparency in Public Procurement Act.