What is Public-private Partnership (PPP)?

 

Public-private partnership popularly known as PPP, is a constructive business model where a government agency and a private sector company work together to achieve a common objective.  Generally, PPP is a long-term contract between a private party and a government entity in which policies are formulated to ensure the time-bound creation of world-class infrastructure. Under PPC, a government entity and a private party share their manpower and technical expertise to build and operate projects; such as public transportation networks, parks, and convention centers. There are concessions of tax or other operating revenue and protection from liability involve in the public-private partnership. Below are some examples of Public-Private Partnership (PPP) Projects in India.          

SECOND VIVEKANANDA BRIDGE (now Sister Nivedita Bridge) in Kolkata:

Sister Nivedita Bridge is one of the first BOT projects, undertaken in 1995. The agreement was signed in September;2002. USA, UK, Mauritius, and India were involved in the project. And it was completed in March 2007. The total cost of the project was INR 640 (USD 128 million). 

MUMBAI METRO:

DMRC (Delhi Metro Rail Corporation) prepared the master plan for Mumbai Metro. Reliance Energy Ltd is playing a pivotal role in the construction of Mumbai Metro. The total cost of the project is Rs. 2356 Crores.   

Salient Features of Public Private Partnership:

·         Large-scale government projects are accomplished through the PPP model; such as roads, bridges, hospitals, etc.

·         It is an efficient and effective business concept where complicated and large projects complete in a stipulated time. 

·         Some bottlenecks also involve in the PPP model. Private parties face cost overruns, technical defects, and an inability to meet quality standards, while for public partners, agreed-upon usage fees may not be supported by demand.     

Indian Law Firms offer high-quality and affordable legal services for public-private partnership. Skillful Indian lawyers are highly proficient and provide comprehensive, strategic, and commercial legal advice in connection with the development and financing of new PPP projects, privatization of existing assets, workout, and restructuring of troubled projects, and other transactions, including secondary market transactions. Apart from that, the Indian law firms also offer a full range of PPP legal services including drafting and negotiating concession agreements, equity transactions, debt and capital markets transactions, and construction and engineering agreements. 

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