ENHANCED PRIVATE SECTOR PARTICIPATION IN INFRASTRUCTURE DEVELOPMENT AT STATE-LEVEL	INDIA

> SECTOR(S) : Marine, Ports, Power

> SERVICE(S) : Institutional Reform, Legal and Regulatory Services, PPP Advisory

CPCS was engaged to provide technical assistance to four selected states in India - Gujarat, Madhya Pradesh, Kartanaka and Andhra Pradesh. The purpose was to address identified constraints to increased private sector participation (PSP) in infrastructure development in the respective states and to facilitate project development.  The infrastructure sectors covered in this project were: roads (toll roads), power, water supply, ports/maritime, telecommunications and airports.  To this end, CPCS worked to identify how changes in approach, institutions or the enabling environment could assist. 

We carried out a background review (at the national and state levels) of all legal and regulatory documents that govern the process of PSP.  We then prepared draft laws to support expanded PSP activity, improve PSP access to roads, ports, urban mass transit and water and sanitation, and improve dispute resolution.  Further, we developed a full regulatory framework for control of development under PSP for the above four sectors.

CPCS recommended the establishment of Private Finance Initiative (PFI) Units in each state, the role being to ensure sufficient funding is available for project development and for helping to shepherd the projects through the development cycle. 

Model/example concession agreements were prepared for the road, ports, urban mass transit and water and sewerage sectors.  These concession agreements were assembled from a selection of existing agreements and are meant to provide the state governments with a starting point for further development of project specific agreements.