Infrastructure Development, PPPs and Regulation

Do you know why governments around the world are eager to partner with the private sector for developing infrastructure? Do you want to know about the key implications of Public-Private-Partnerships (PPPs)? Are you looking for factors which drive a successful PPP experience and what pitfalls to avoid? In this course I talk about infrastructure, its characteristics, drivers for commercial outlook and key implications of commercialization/PPPs.The biggest constraint to growth in India and the developing world is infrastructure. Infrastructure, being a natural monopoly, has traditionally been the responsibility of the government for development. However, capacity (financial and human) deficit in government led to the involvement of private players with greater risk sharing, moving from the traditional contract mode to the PPP mode. The advent of PPPs brought in significant challenges, both for Government and the private players. Roles and mindset needed redefinition, especially on the Government side. Appropriate regulation became more critical. There is need to learn from both successes and failures of PPPs in infrastructure sector to bring in a greater maturity and professionalism in this eco-system by developing competencies and perspectives.Relevant questions in this context would be:• How do you structure infrastructure projects?• How do you assess risks and manage them?• How do you share risks between the government and PPP player?• How do you do tendering and bidding?• How do you develop sustainable concession agreements?• How do you develop an appropriate regulatory eco system?While addressing the above questions, this course will provide a grounding in theory and further build on case studies from various infrastructure sectors, leveraging India’s rich experience in PPPs. There is much that a global audience can learn from this course as the implications of commercialization remain constant, irrespective of geography.The present mood in the infrastructure sector is somber, with huge opportunities on the one hand and a great deal of skepticism on the other. Non-Performing Assets (NPAs) are piling up in Public Sector Banks and infrastructure is a very big contributor. Several things are going right and several things are going wrong! However, there are a plethora of opportunities in this ambiguous situation. Hence, this course has something for lawyers, public policy practitioners, economists, strategic investors in infrastructure industry, financial analysts in banks/sovereign wealth funds/ infrastructure focused mutual funds and equity research, turn around specialists in stressed assets, private equity investors, investment bankers, credit rating professionals, management consultants and management graduate.

Week 1: Introduction to Infrastructure Development

• Introduction• Characteristics of Infrastructure• Drivers for Commercial Outlook• Implications of Commercialization

Week 2: Project Structuring
• Introduction• Cost, Returns and Bundling/Unbundling• Case I: Delhi Metro Airport Express Line• Case II: RSWC and SSLL: PPP in Agri-Warehousing• Conclusion

Week 3: Appraisal, Risk Assessment and Risk Management

• Introduction• Case I: Yamuna Expressway• Case II: Kutch Railway Company Limited• Conclusion

Week 4: Tendering and Bidding

• Introduction• Case I: GMR KUAEL: The Longest Road PPP• Case II: Airport Privatization: Bidding Process for Delhi and Mumbai• Case III: AAI Bidding for Bogapuram Airport: From Authority to Bidder• Case IV: Effect of Legal Issues in Infrastructure Development: The Case of Container Terminal Bids in Jawaharlal Nehru Port Trust• Conclusion

Week 5: Legally Tenable Concession Agreements and Post Project Ownership

• Introduction• Case I: LTTIL: Coimbatore Bypass Project• Case II: Evolution of Model Concession Agreement for National Highways in India• Post Project Ownership• Conclusion

Week 6: Regulatory and Dispute Resolution Framework and Conclusion

• Regulatory and Dispute Resolution Framework• Conclusion