New Sustainable Model of Public Private Partnership for Indian Road Infrastructure

Abstract

Road network is an essential component for the development of country and for developing countries; lack of funds is the main challenge in expanding the road network. The public private partnership (PPP) models are the best solution to overcome the financial challenges in development. In order to attract private agencies to invest in the project, it is necessary for all the developing countries to design the PPP model very carefully and in such a way that it will sustain over the long run. This paper gives insights of major stakeholders in the PPP model along with their roles and responsibility, various PPP models used in the world, modes of contracting used in India for road development and comparison between them. The Hybrid Annuity Model (HAM) which revitalized the private sector investment and boosted the Indian infrastructure sector is thoroughly studied and problems associated with HAM are identified. In this study, new PPP model is explained for the Indian Road Infrastructure sector which will be better than the existing HAM model over the long run. Also for better management of road assets and maintenance of roads, Output and Performance based Road Contracts (OPRC) model is recommended based on the literature study.